Currently, there are two official deployment options, cloud and on-premises, offered to the users of Microsoft Dynamics 365. Although functionality of these solutions is almost identical, Microsoft Dynamics 365 implementation services and maintenance processes are not the same. Here, we are going to delve deeper into a comparison of the deployment possibilities.
Similarities of Cloud and On-Premises Microsoft Dynamics 365
The ERP systems provided with different deployment methods share many common features.
For example, both deployment options of the Microsoft Dynamics 365 Finance application support management of data, finance, documents and human resources. They also utilize business intelligence for predictive insights and can be integrated with Microsoft Office applications to use a unified dataset across the suite.
Furthermore, the two deployment options support tools for service management, security, project management, accounting and much more.
Deployment Types: Key Differences
Despite similarities, the capabilities of on-premises and cloud Microsoft Dynamics 365 are not the same.
First of all, on-premises FSCM requires physical infrastructure which can be either handled by your company or provided by a vendor.
Secondly, organizations using on-premises software are responsible for the safety of their data. They cannot use powerful Azure cloud cybersecurity protection and data backups to restore information in case of disasters.
Additionally, the on-premises system does not have an integration with LCS (Lifecycle Services), RCS (Regulatory Configuration Services), SharePoint and Power BI. The on-premises system still has access to Power BI desktop, but it has a limited capacity for working with business intelligence. For instance, there are no analytical workspaces and intelligent business recommendations.
Microsoft Dynamics 365 implementation services will differ depending on the deployment type, too.
Cloud implementation guarantees access to the system’s modules and applications, adjusting them to the organization’s needs and installing dedicated desktop or mobile software if needed. On-premises implementation requires setting up the entire infrastructure. Installation of the software is obligatory while any system updates have to be handled on each of your devices separately.
Which Deployment Type Is Better?
Cloud implementation provides companies with state-of-the-art cybersecurity technologies, disaster recovery options, flexible system scaling, better compatibility with portable devices and lower infrastructure maintenance costs.
Yet, the on-premises implementation gives organizations more control over their data and flexibility in terms of configurations. It is an ideal solution for companies in regions with limited public infrastructure, insufficient bandwidth and no Azure Data Centers.
Benefits of Microsoft Dynamics 365 Implementation Services
Companies can deploy ERP software without using Microsoft Dynamics 365 Implementation Services. At first glance, it might seem a valid option that allows to save money.
In reality, software deployment is a quite complex process even in the case of cloud deployment. To make applications work in the desired way, you need to make sure they have appropriate configurations and relevant data. A deep understanding of the usability of the software’s technical capabilities for optimization of the company’s business workflows comes with experience. That is why having technically savvy employees is not enough for a successful implementation.
If there are no staff members in your company with prior experience in Microsoft Dynamics 365 implementation, the process can turn out to be more costly if you do not reach out to professional service providers. An increase in costs is usually caused by the prolonged deployment phase as well as inadequate configuration that requires expensive changes in the future.