Microsoft Dynamics 365 Business Central: Cloud vs On-Premise

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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.

Conclusion

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 www.skc.lu to learn more about Microsoft Dynamics 365 Business Central and how it can benefit your business.

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