What are the differences between on-premises and cloud (SaaS) implementation?

One of the topic faced by decision-makers planning the implementation of Dynamics 365 Business Central is the choice between local implementation (on-premises) and using the cloud version. Both the on-premises and cloud versions have their advantages and limitations, and the choice between them can have a significant impact on the costs, flexibility and innovation of the enterprise. Below is a comparison of both options.

  On-Premise       SaaS/Cloud
Physical server room – environment Required purchase and maintenance of equipment (production, testing and development facilities). As part of the license available for the production environment and 3 test/development environment. There is no server server at the client.
Physical server room – backup system


Required purchase and maintenance of equipment for environment backup.


Physical server room – continuity of work You must ensure the continuity of operation of the devices yourself (emergency power supply system, air-conditioning system for technical rooms, fire protection, network devices, environmental redundancy). Adequate security provided by Microsoft as part of your subscription.
Physical server room – security            We take into account special security measures regarding access to servers, systems and databases, as well as anti-virus protection.


IT Administration/Support


Required IT support team with a wide range of competences (including: servers, IT network, operating systems, MS SQL database servers, backup systems).


Continuous monitoring of the environment and examination of the health of systems is required.





Required purchase of licenses for operating systems, SQL servers, others (e.g. anti-virus, anti-spam protection).
Environment updates – service windows


Environment updates – service windows.


Regularnie przestrzegany zgodnie z harmonogramem.
Upgrade Business Central


Manual, upon customer request. The operation of upgrading the version involves the allocation of additional hardware and system resources and depends on the availability and competence of IT specialists.


Security backups


Required to maintain your own backup management system.


Continuous automatic data archiving provided by Microsoft as part of your subscription.


Required to implement your own GDPR compliance policy (GDPR).



What are the arguments for using the cloud version?

  • The cloud version is characterized by more flexible management of the number and type of users – you can freely increase or decrease the number of users depending on your needs.
  • Possibility to extend the standard functionalities of Business Central thanks to applications available within AppSource.
  • Automatic updates to the highest version of Dynamics 365 Business Central.
  • Business Central in the cloud is closely integrated with various Microsoft solutions, including: Office, Power BI, Sharepoint, Power Apps.
  • No need to incur the costs of Windows Server software and SQL database – it is already included in the price of the D365 Business Central subscription.
  • No management of servers and IT equipment (no need to have equipment and IT administrator services).
  • No software installation services on individual client computers (only an Internet connection and a web browser are needed).
  • Microsoft is responsible for data security – data loss and corruption is very unlikely.
  • Availability of Microsoft services is guaranteed at 99.9%.
  • Backups are created automatically, without the need for such services to be provided by the IT administrator.
  • Instead of a one-time license purchase, fees for Business Central in the cloud are settled monthly, flexibly adjusted to the number of users used.