Microsoft Dynamics CRM On-Premise vs. Online
Dynamics 365 CRM is a collection of applications on the Microsoft platform. Since the 2003 release of version 1.0, Dynamics 365 CRM has transformed sales, marketing, and customer service operations for thousands of businesses.
Deployment Options
As of 2018, Microsoft offers an online “cloud” deployment option as an alternative to the traditional on-premise deployment of Dynamics 365 CRM. In total, there are three ways to host the software:
On-Premise Deployment
Companies that host software on-premise maintain all data and servers for those solutions. These companies might have dedicated server rooms or collections of other hardware to help the software run smoothly. This is the most traditional deployment option, and it gives businesses full control over the movement of data.
Online Deployment
When Microsoft Dynamics 365 CRM is deployed online, it is deployed via the cloud. Unlike on-premise solutions, which run locally on a computer, cloud solutions are hosted off-premise (usually by the solution’s developer). So long as a user has internet access, they can log in to view data anytime, anywhere, from any device.
Hybrid Deployment
Some organizations want the best of both worlds. For those companies, a hybrid combination of on-premise and cloud functionality is an attractive option. Logistically, it is more complex than a straightforward on-premise or online deployment. It requires hardware to host the software on-premise and a subscription to Azure, Microsoft’s cloud computing service. In essence, data is stored locally by your company, but users can still enjoy cloud services.
Differences Between On-Premise and Online Deployment
Now that you know what your deployment options are, it’s time to compare them. This chart explores some of the most important differences between on-premise and online deployment.
| Issue | On-Premise | Online (Cloud) |
|---|---|---|
| “I need a solution with reliable security“ | Security for the server, clients, and network is maintained by in-house IT representatives | Security is multi-faceted and decentralized to limit data accessed via breaches |
| “I need a solution with advanced functionality“ | Microsoft’s on-premise solutions are robust enough for general business needs | Microsoft’s cloud solutions receive frequent updates, new modules, and extra features for businesses to try |
| “I need reliable support for my solution” | On-premise support requires assistance from your IT team as well as the Microsoft support team | Dynamics online subscriptions come with unlimited Microsoft support, documentation, and Microsoft Dynamics Community access |
| “I need a solution that’s flexible“ | On-premise solutions can only be accessed via devices connected to the specified network | Online solutions are accessible anytime, anywhere, and from any device with an internet connection |
| “I need an affordable solution” | On-premise solutions require more hardware to maintain and more expertise from your IT team | Online solutions slash hardware requirements and receive automatic updates, giving users an affordable, hands-off experience |
Why Does Cargas Recommend Microsoft Dynamics CRM Online?
We’ve been in the business with Microsoft for more than 30 years—in fact, we were the very first Microsoft CRM partner! For three decades, we’ve watched business technology evolve beyond what anyone could have thought possible 20, 15, or even 10 years ago. Microsoft in particular has been a leading innovator in providing applications that work independently or as part of a suite.
Industries of all shapes and sizes have had to adapt to unique and, at times, unexpected changes. Businesses that want to continue to grow alongside shifting global markets need to invest in flexible solutions that support teams on the go. Microsoft’s cloud platform is reliable, affordable, and extensive enough that any business can find a combination of applications that fits their needs.
As of 2021, 50% of corporate data is stored in the cloud. As this number increases, it’s a sign that more and more companies are moving away from on-premise hosting and embracing the unique capabilities of the cloud. Are you ready to join the movement?
Ready to learn more?
For 30 years, our team has helped businesses achieve success with Microsoft products. Contact us to discuss your business needs and how you can take advantage of Microsoft’s cloud platform.