On-Premise Microsoft Dynamics CRM vs Dynamics 365 Online

While it may seem that the cloud has already won all the battles, many businesses still prefer on-premise options. A single answer to the question which one to choose doesn’t exist. It depends on the way each business works and its future goals. Before making the decision, the needs of the company have to be evaluated since the costs of going online may be high.

When you are thinking of choosing between using Microsoft Dynamics CRM or Dynamics 365, you need to consider a few factors. The below options need to be evaluated by the company owners thinking of moving their business to the cloud regardless of the tool they use to do it.

1. Advanced Strategy

Moving your business app to the cloud can be called a strategic decision. It can help you get a competitive advantage by focusing on building and supporting the business instead of managing and maintaining the IT infrastructure. On-premise app management takes time and investment to keep it updated and in excellent shape.

Moving business apps online usually keeps the company a step ahead of the competition since the future of business is interchangeably connected with the cloud. I.e. by moving to the cloud today, you are doing something you’d need to do in the future anyway.

Microsoft clouds options don’t just include Dynamics 365. Office 365 and Azure need to be considered as well.

2. Improved Security

Moving to the cloud is usually associated with several security concerns. Dynamics 365 has all the same security options as on the premise location. Microsoft has a data center for the majority of countries. Major business apps don’t need to concern themselves with their data security on the cloud. New security options are being developed on a regular basis.

3. Cutting Costs

When it comes to moving to the cloud, the licensing costs alone can make companies turn back to the on-premise option. However, there are many on the premise costs owners don’t consider since they are used to them. IT infrastructure support, hardware expenses, maintenance, upgrading servicing, rent…the list goes on and on. Overall, by moving to the cloud, the company saves money in the long run.

However, the costs of moving to the cloud are high anyway. It’s a formidable investment, which may not be suitable for startups or small businesses. Even conquering the cloud with the Tricension migrating tool may still be costly for small companies.

4. Updates and Maintenance

Development and maintenance of the on-premise business apps have already been worked out and perfected by many companies. Numerous on-premise integrations may now need to be migrated to the cloud. Additionally, the annual upgrade of Dynamics 365 should be considered.

IT teams need to acquire new skills to keep up with the innovations the migration to the cloud brings. They have to learn new technologies, such as Azure. Managing a business online requires additional training for the IT specialists.

5. New Features

Moving to the cloud with Dynamics 365 allows businesses to take advantage of new functionalities and capabilities, which aren’t available in the on-premise version. Microsoft is working to come up with new features every day.

Overall, when it comes to choosing between on-premise Microsoft Dynamics CRM and Dynamics 365 online, the latter is a better decision for the majority of companies. Smaller businesses which can’t afford the switch need to think about future savings.