Opting to use Business Central to help run your business is a great decision. Whether you are new to Microsoft ERP, want to upgrade from Dynamics NAV, or upgrade from GP, you'll need to decide how to deploy the software.
Microsoft's Business Central can be installed and deployed on-premise or cloud-hosted. But you might be wondering, which is the best option for my business? The choice between on-premise and cloud-hosted Business Central depends on your business needs, budget, and IT infrastructure.
In this blog, we compare Dynamics 365 Business Central on premise vs cloud, looking at the cost, control and security, to outline the potential benefits to your business.
Business Central on-premise vs cloud: COST
On-premise
By opting for an on-premise deployment, you will purchase licenses instead of paying monthly fees.
In addition, on-premise ERP solutions, including Business Central, require a certain level of investment to install, deploy, and maintain. The usual costs include server hardware, physical space to install servers, power consumption, and IT staff to maintain the system. Additional costs, including hardware maintenance, may also occur throughout the system's life cycle.
Larger organisations may choose an on-premise solution, as their budgets allow upfront investment to install on-site. If your business has pre-existing IT teams and infrastructure, you may also opt for on-premise over cloud deployment, as this offers a solution that can be controlled and maintained in-house.
Cloud
With Cloud-based solutions, the need for physical hardware such as servers is eliminated - Microsoft can host Business Central in the Cloud (Microsoft Azure) which offers a lower initial cost.
The costing model for Cloud solutions is available on a subscription basis (SaaS - Software as a Service), allowing smaller companies to reap the rewards that the software can provide without needing a substantial initial investment. Monthly payments give you the confidence to budget effectively for the future.
Cloud deployment is particularly useful when scaling your operations up or down depending on your business demand and workload.
Business Central cloud vs on premise: CONTROL
On-premise
An on-premise version of Business Central allows you to control and maintain every aspect of the system - you manage your data and infrastructure. It also allows you to choose when and how security fixes, updates, and patches are rolled out to ensure business continuity and minimise disruption to operations.
While this may provide control to your organisation, you would also need a dedicated team or member of staff with sufficient knowledge to manage these tasks. You would also be responsible for maintaining the system to ensure it is working correctly, but it is worth remembering that your Microsoft Partner can also manage these services.
Cloud
Cloud-based solutions offer a different approach when having control over your system. By opting for a cloud version of Business Central, the environment is managed by Microsoft, you just access a management console. Updates will be automatically applied, meaning you’re always on the latest version and able to access the most up-to-date features.
Business Central on premise vs Cloud: SECURITY
On-premise
On-premise solutions are usually more suitable for larger businesses which handle highly sensitive data and are required to provide higher levels of security to their systems and data.
With security being a primary concern for many businesses, on-premise solutions could offer a more secure environment.
Cloud
The number one concern for businesses surrounding cloud solutions has been mainly focused on security. By opting for cloud-hosted Business Central, you can rest assured that your system is kept secure, as security updates are automatically installed. Microsoft ensures high security, compliance and data protection - your data is stored in secure Microsoft data centres. Plus, with a 99.9% SLA uptime guarantee, you don’t need to worry about downtime.
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