Cloud-based ERP systems have become more popular in recent years among small and medium-sized businesses, as their data is stored in the cloud and the subscription includes automatic updates to products that Microsoft renews annually, including performance improvements and new features.

But you should also know that there are many reasons why an organization can choose to implement Microsoft Dynamics 365 Finance and Supply Chain in an On-Premise mode (installed on local servers), and in turn know the differences that this model has versus the cloud mode.

That is why, when selecting a new enterprise resource planning (ERP) system, the most difficult thing is to know how to choose between Cloud ERP or On-Premise ERP. For this reason, throughout this article, we will announce the differences that each one presents, so that it is easier to choose the one that best suits the needs of your company.

How do Dynamics 365 Finance and Supply Chain On-Premise and Cloud compare?

Dynamics 365 Cloud:
  • Your database is protected on Microsoft’s secure servers in one of its chosen data centers that are accessed through a web connection.
  • You simply need to increase users or add more capabilities when you need it.
  • You will be able to implement Dynamics quickly without internal IT resources or incurring hardware expenses.
  • You will be able to enter the system through mobile devices from any broadband connection.
  • You will be benefiting from continuous product development and biannual updates and releases with no up-front license costs or recurring software license renewal costs.
  • You will pay only for what you use and you can increase or decrease subscriptions when necessary.
Dynamics 365 On-Premise:
  • It is installed on your local servers, which gives you complete control of the administration and maintenance of your database, which means that it does not require a fast internet connection.
  • Avoid the possibility of cloud data storage costs.
  • You will be able to control application updates and changes, create your own SQL Server Reporting Services (SSRS) reports.
  • It is possible to make use of your existing investments in hardware and IT infrastructure.
  • Allows you to have full ownership of data within a local deployment, giving you full control of how, where, and how long you store business and customer data.
  • In turn, it will allow you to use internal staff or external IT resources that will manage your system.

To conclude, before choosing between one system or another, it is essential to analyze the specific needs and conditions that best fit the interests of your company. If you still have doubts, we can give you the advice you need. Contact us to speak to one of our consultants!