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Microsoft Releases On-Premise Deployment Option for Dynamics 365 for Finance and Operations

While the adoption of cloud-based ERP and CRM solutions has gained momentum faster than most people expected, there are still some organizations that prefer to host mission-critical ERP systems in their local on-premise data centers, or that for regulatory, compliance or data privacy reasons, don’t have the option of utilizing an ERP service in the cloud.

With Dynamics 365 for Finance and Operations, Microsoft has been intent on providing options that address a variety of deployment scenarios. This is a key competitive advantage, as most other ERP/CRM providers offer either a cloud or on-premise solution, not both. To this end, Microsoft is offering three deployment options for Dynamics 365 for Finance & Operations:

  • Cloud – a full Microsoft-managed cloud service
  • Local Business Data – a traditional on-premise deployment, disconnected from the cloud
  • Cloud + Edge – a hybrid model with both cloud-based and locally deployed components

For a more in-depth comparison of these options, please refer to the Microsoft Dynamics 365 community blog article click here.

Specific to the local business data (LBD), or on-premise deployments of Dynamics 365 for Finance and Operations, Microsoft has created a way to utilize the Microsoft Azure Server Service Fabric, which is the next-generation Microsoft middleware platform for building and managing enterprise applications. This technology can be deployed on any computer that’s running Windows Server, and makes it possible to run the Dynamics 365 for Finance and Operations application servers and SQL database server in the customer’s data center. While Lifecycle Services (LCS), Microsoft’s application lifecycle management suite, is still a key component for deploying and managing Dynamics 365 for Finance and Operations, all core application and infrastructure components are maintained locally.

Microsoft has produced a full whitepaper that provides details related to the on-premise system architecture, and well as specific system and hardware requirements, which you can find here.

With the release of this new deployment option, Microsoft has moved closer to being able to satisfy all of the primary deployment scenarios for enterprise-class ERP software. If you have any specific questions, feel free to reach out to us at This email address is being protected from spambots. You need JavaScript enabled to view it..

About the Author

Andy Yeomans

Andy Yeomans

Andy Yeomans is Director of Business Development for sa.global, where his role is to help project-driven organizations evaluate and select ERP software systems to better manage their finances, projects, clients, and resources. Andy was instrumental in developing the organization's Microsoft Dynamics 365 industry solutions and practice area for the AE & Environmental industry. Andy has over 17 years of ERP experience and has helped dozens of AE & Environmental firms evaluate, select, and implement ERP software systems for their business.

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