Dynamics 365 Online vs On Premise

Dynamics 365 Online (sometimes referred to as "in the cloud") offers exclusive benefits that an on-premise Dynamics 365 system simply doesn't. Some of those benefits include premiere accessibility, scalability, and a simplified end-user experience. Having your technology systems, like Dynamics 365, in the cloud gives your business the foundation it needs to grow in our ever-changing and advancing technology-filled world. It also can save reduce business costs and increase security, which are primary goals for most business leaders. Explore the details below of the benefits of having Dynamics 365 Online, compared to an on-premise Dynamics 365 solution.

Simplified Accessibility

Having Dynamics 365 in the cloud offers improved access capabilities. This means users that are spread out at disparate office locations, or even remotely, can all access their Dynamics 365 easily, because it is online. They can update information, as well as view information from other users in near real-time. On-premise solutions can also perform this function but it doesn't allow users to access current information as quickly.

Scalable Foundation

Dynamics 365 in the cloud offers more freedom for growth. With Dynamics 365 and all of its information being online, storage limits are whatever the user sets them to be, and can be increased at any time. On-premise versions of Dynamics 365 are limited in the data they can hold as it is a set size, and if a business was expanding rapidly, they would more than likely need to purchase a new, large on-prem server. When a business's Dynamics 365 platform is in the cloud, it can more easily add on additional Dynamics 365 technologies or other data management systems. This will lead a business to optimum growth as it accurately keeps track of various types of information all in a single location. Dynamics 365 on-prem solutions are proving to be outdated and limited in their capacities, so implementation partners highly suggest a cloud Dynamics solution.

Reduced Cost

From having a Dynamics 365 system in the cloud, businesses are able to cut costs and improve various process efficiencies. Most businesses have some sort of internal technical team who is responsible for the upkeep of technology systems and ensuring they are operating properly. When businesses have their technology on-prem, because this means there are physical servers involved, oftentimes those servers break and require repairs or need updates. This requires businesses' technical teams to spend time with the upkeep of those Dynamics 365 servers, including the cost it takes to replace them fairly frequently. A cloud solution doesn't need manual repairs or need replacing.

Increased Security

When businesses have their Dynamics 365 in the cloud vs Dynamics 365 on-premise, they are ensured higher security. Security breaches and threats are less likely to happen when information is in the cloud. If there is no physical server/system to breach, sensitive information will be secure. There are additional permissions and security features that can be applied to increase security in the cloud, that are not available for Dynamics 365 on-prem.

Seamless Integrations

Dynamics 365 Online also offers the extreme benefit of seamless integrations. This means it can connect smoothly, and communicate with other Microsoft solutions already in place. Dynamics 365 Online does this with fewer hiccups that Dynamics 365 on-prem. Dynamics 365 Online can also connect well with other technology solutions not a part of the Microsoft stack, and makes for a better overall user interface experience.


Dynamics 365 is a top-performing ERP and CRM solution. Users are able to gain the most benefits when operating in the ideal solution of Dynamics 365 in the cloud, as opposed to an on-premise solution. To learn more about how to migrate your Dynamics 365 to the cloud, contact a JourneyTEAM solutions specialist today.


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