Customers can choose one of three options for deploying the Dynamics 365 for Finance and Operations ERP system:
1. Cloud deployment (SaaS)
The software is known as SaaS or software as a service. Customers who choose this deployment path will use a cloud-hosted version of Dynamics, meaning it is installed on the solution provider's servers and accessed remotely over the Internet. The user enters the system through a web browser. Dynamics 365 applications are hosted either in the Microsoft Azure public cloud or in a managed Azure service provided by Microsoft partners.
Using Dynamics 365 in the cloud eliminates the need for hardware and internal data storage, users do not need to manually install or update software, as all updates are performed by the solution provider.
2. Local deployment (On-Premise)
A "traditional" software deployment method that allows users to host their Dynamics 365 software either on servers or on an IT partner's servers. Companies using Dynamics 365 on-premise install the software on their devices and store all data on their hardware.
Local deployment of Dynamics 365 software is most often chosen by enterprises that are legally limited by the state in the possibility of placing data on external servers (state enterprises), as well as those that for some reason do not have a sufficiently stable Internet connection for reliable access to the SaaS version of the software .
3. Hybrid deployment
Hybrid deployments, also known as Cloud and Edge, are fully integrated with the Microsoft cloud, but transactions and data are stored locally in the users' own data center and synchronized as needed.
The ability to use the system offline can be useful in industries where business continuity is particularly important, such as retail, and allows customers to perform point-of-sale transactions regardless of an Internet connection. Any data obtained offline can be synced to the cloud for business intelligence or reporting.
Is there a difference in functionality between cloud and on-premises deployments of Dynamics 365 for Finance and Operations?
Users using the Dynamics 365 SaaS model can access a range of modern and constantly evolving business intelligence tools. The cloud not only stores and processes all the Customer's data, but also learns from them. Microsoft has invested heavily in Machine Learning (Machine Learning) Dynamics 365 and offers customers a full range of information about the company's activities in real time, helps visualize business data with the help of intuitive, customizable reports and monitoring panels.
With a financial guarantee of 99.9% of application uptime, users can also be assured of complete data protection, as Microsoft provides data recovery in the event of data loss. Microsoft's recovery protocols, designed to help organizations recover from planned and unexpected outages, include keeping a synchronized backup copy of the company's data on a secondary server.
The recovery procedure is performed using network load balancing, which routes traffic evenly across multiple servers and redistributes the load in the event of a server failure. Backup servers can also be used to ensure continued operation in the event of a primary server failure. Dynamics 365 offers SQL mirroring, where a copy of your database is hosted on an alternate server that can be made operational in the event of a disaster.
Users of the cloud-hosted application can increase or decrease the size and scope of their Dynamics 365 solution at any time. Using on-premises software when scaling a business involves investing in new servers and processors.
With cloud-based software, customers pay for the ability to use the software, not the computing power or space to run it, so adding or removing users or even applications is as easy as sending a service request.