Microsoft Dynamics CRM On-Premise vs. Online

Microsoft now offers an online “cloud” deployment option for Dynamics 365 CRM as an alternative to the standard on-premise implementation. There are three options for hosting the software:

On-Premise Deployment:

On-premise software providers manage all data and servers for their solutions. These businesses may have dedicated server rooms or collections of other hardware to aid with the seamless operation of the software. This is the most common deployment method, and it allows companies complete control over data transit.

Deployment Online:

When Dynamics 365 CRM is installed online, it does so through the cloud. Cloud solutions, unlike on-premise solutions that run locally on a computer, are hosted off-site (typically by the solution’s developer). Users can log in to examine data at any time, from any device, as long as they have internet access.

Hybrid Deployment:

Some businesses desire the best of both worlds. For those businesses, a hybrid solution that combines on-premise and cloud capability is a viable alternative. It’s more complicated logistically than a simple on-premise or internet implementation. It requires on-premises hardware as well as a subscription to Microsoft’s Azure cloud computing service. In essence, your organization stores data locally, but users can still use cloud services

Now let’s look out at the difference between Dynamics CRM On-Premise Vs. Online;


On-Premise – Security for the server, clients, and network is maintained by in-house IT representatives.

Online (Cloud) – Security is multi-faceted and decentralized to limit data accessed via breaches

Advanced functionality:

On-Premise – Microsoft’s on-premise solutions are robust enough for general business needs.

Online (Cloud) – Microsoft’s cloud solutions receive frequent updates, new modules, and extra features for businesses to try.


Your IT team, as well as the Microsoft support team, are needed for on-premise support.

Microsoft support, documentation, and community access are all included with Dynamics online subscriptions.


Only devices linked to the defined network can access on-premise solutions.

Online solutions are accessible from any device with an internet connection, at any time and from any location.


On-premise solutions need more gear and experience from your IT staff to maintain.

Online solutions reduce hardware needs and provide automatic upgrades, providing a cost-effective, hands-off experience for customers.

Why Does XcelTec Recommend Microsoft Dynamics CRM Online?

Microsoft’s cloud platform is dependable, inexpensive, and comprehensive enough that any company may choose a set of apps that meets their requirements.

By 2021, half of all business data will be kept in the cloud. As this number rises, it indicates that a growing number of businesses are abandoning on-premise hosting in favor of the cloud’s unique possibilities. Are you willing to join the cause? Reach Us Today for additional information and help on Dynamics 365 or any of the other Dynamics 365 perks.

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