Microsoft Dynamics 365 Business Central: Cloud vs On-Premise


Are you considering implementing Microsoft Dynamics 365 Business Central for your business? One of the key decisions you’ll need to make is whether to opt for a cloud-based or on-premise solution. In this article, we’ll explore the differences between the two options to help you make an informed decision.

Cloud-based Business Central  

A cloud-based solution offers several advantages over an on-premise solution. These include:

  • Automatic updates and upgrades: With a cloud-based solution, you’ll benefit from automatic updates and upgrades, reducing maintenance expenses and ensuring that you always have access to the latest features and fixes.
  • Scalability and flexibility: A cloud-based solution is scalable and flexible, allowing you to easily adapt to your business’s evolution.
  • Integration with other solutions: A cloud-based solution offers faster integration with other solutions, such as Microsoft Teams, Excel, and Sales.
  • Power Platform components: Certain Power Platform components are partially included in the license, providing additional value.
  • Free access via Microsoft Teams: You’ll have free, read-only access to your data via Microsoft Teams, allowing for easy collaboration.
  • No downtime when moving to SaaS: If you decide to move to a SaaS solution, you won’t experience any downtime, ensuring a smooth transition.
  • No transactional cost to move data: There is no transactional cost to move your data to a cloud-based solution, making it a cost-effective option.
  • Limited storage capacity: A cloud-based solution has a limited storage capacity of 80GB + 1-3GB per user, which may be a consideration for businesses with large amounts of data.

On-premise Business Central  

An on-premise solution also has its advantages, but there are some considerations to keep in mind. These include:

  • Not available features: Certain features, such as in-product search, late payment prediction, and the ability to manage work across multiple companies, are not available in an on-premise solution.
  • Requires additional effort: An on-premise solution requires additional effort to maintain, due to the need for server infrastructure maintenance and the increased complexity of the product.
  • Uncertain future: The future of on-premise solutions is uncertain, with perpetual licenses no longer being available for purchase after April 2025 and maintenance costs expected to increase.


A cloud-based solution offers several advantages over an on-premise solution, including automatic updates and upgrades, scalability and flexibility, faster integration with other solutions, and reduced maintenance expenses. Additionally, certain features and components are only available in the cloud-based version, providing additional value to businesses. The future of on-premises solutions is uncertain, with perpetual licenses no longer being available for purchase after April 2025 and maintenance costs expected to increase. In conclusion, a cloud-based solution is often the better choice for businesses looking to implement Microsoft Dynamics 365 Business Central, due to its many advantages and the uncertain future of on-premise solutions.

Visit our website at to learn more about Microsoft Dynamics 365 Business Central and how it can benefit your business.

Most popular insights

Finance Apps for Business Central

Simplifies the tax compliance processes and ensure accuracy.

A paperless solution designed for Fiduciaries and Accounting firms.

Optimizes the creation of payments from customers and vendors with a simplified User Interface.

Organizes your manual invoice processing from start to finish.

Solution that automates employee expense tracking.

Industry Apps

Solution that automates processes and generates detailed reports for many industries.

Security and Compliance

Checks are carried out directly in Microsoft Dynamics 365 Business Central on the contact, on the customer, on the vendor and much more

The Obfuscation app enables you to protect sensitive data in your sandboxes while maintaining usability for testing and development purposes. Personal, confidential and regulated data remains anonymous but your consultants and developers can perform realistic tests.

Using an ERP software can be overwhelming. Many customers struggle with the right setups and getting started. Our Data Management app allows us to remotely manage your setup data so you can get up and running fast.