Choose the Right Cloud Computing Platform for your Business Central: On-Premise/SaaS/PaaS

Marketing Team
Published on November 28, 2021

Cloud computing allows your company to control its computing resources remotely. The word has developed in recent years and can now be used to denote outsourcing your storage and processing needs to a third party. The internet is referred to as the 'cloud,' and working 'in the cloud' refers to how you store and access your data via an online connection. Cloud computing enables organizations to access information electronically, providing a flexible and worldwide method of accessing data from any location at any time. The cloud has become a necessary addition for all small and medium businesses but it still remains a broad concept with multiple benefits to offer in the online territory. It's more critical than ever to understand the differences and benefits of the various cloud services when you explore moving your organization to the cloud, whether for application or infrastructure deployment.

Cloud computing is a great euphemism for the centralization of computer services under one server.

-Evgeny Morozov

Despite the fact that the number of as-a-service options is expanding by the day, there are usually three cloud service models to compare:

  • Software as a Service (SaaS)
  • Platform as a Service (PaaS)
  • Infrastructure as a Service (IaaS)

Dynamics 365 Business Central on Cloud

When it comes to hosting Dynamics 365 Business Central in the cloud, it can serve you with several benefits. You won't have to spend time and money operating your in-house servers and hardware if you host your Dynamics 365 software on the cloud. All you need is an internet connection to use your solution; no software needs to be installed on individual workstations. You won't have to worry about hardware failures, data loss, or corruption with cloud deployment because the infrastructure that supports your program is all housed off-site in a safe location.

Dynamics 365 provides a real-time, 360-degree picture of performance, as well as easy, customized reports and dashboards to assist in visualizing company data. Many businesses are still using on-premise software, which limits them in the long run. Dynamics 365 gives access to a variety of intelligence products, including Power BI, Microsoft's sophisticated reporting and analytical platform, as well as data-driven next step guidance and digital assistant services, by connecting to the cloud's brainpower.

Features On-PremiseCloud
Software Installations



Individual workstation web browsers are used to deploy and access the application.
Use a web browser to access your Business Central instance.
Software UpdateUpdates are not installed automatically; instead, your support partner must install, test, and deploy them.Automatic updates ensure that you always have the most recent version. Make a schedule with your support partner.
ScalabilityFor most corporate operations, bespoke development and third-party extensions are available.Apps are readily installed via Microsoft AppSource and are designed to scale with your organization.
CostThe cost of the initial installation is higher because it necessitates an investment in hardware, installation, and perpetual licenses. Subscription payments are optional.Costs of initial setup and onboarding. The cost of a monthly membership for each user includes hosting, security, and upgrades, among other things.
Client AccessThe on-premises server is reached via a web URL. Users can also access the programmed through the Outlook Client and the Business Central APP.The Microsoft Azure Cloud is accessed via a web URL. Users can also access the programmed through the Outlook Client and the Business Central APP.

Business Central with On-Premise Software

Hosting Microsoft Dynamics 365 Business Central on-premises is exactly what it sounds like. The data is physically stored on your site using a physical server to host and administer the ERP system, and the firm is responsible for it. This sort of hosting has its advantages, and it is frequently utilized when more customizations are required to totally match the program to the specifications of the organization, no matter how complex they may be. It provides a perpetual license, which ultimately will cost you more than any cloud solution. Because you'll need servers to host the solution, you'll need to invest in hardware and space. You may also require in-house IT resources to assist with program maintenance and upgrades.

Overall, the cloud edition of Business Central has a cheaper total cost of ownership. The on-premises version, in comparison, has a greater initial setup cost and continuing maintenance costs in the future. However, data security can be difficult to manage, leaving data exposed to breaches. In addition, data can only be accessed within the data center where it is physically stored.

Business Central with SaaS Platform

In the cloud industry, Software as a Service, often known as cloud application services, is the most widely used choice for organizations. SaaS makes use of the internet to distribute programs to users that are controlled by a third-party vendor. The majority of SaaS services run immediately in your web browser, thus there are no client-side downloads or installations required. In a cloud environment, managing a Dynamics 365 Business Central SaaS tenant is not the same as managing an on-premise installation. Under the hood, a SaaS tenancy is entirely managed by Microsoft, so you don't have to worry about infrastructure or all the cloud stuff that has to be provisioned to keep your environment available, safe, and up to date. However, in order to keep a customer happy in the cloud and to have a fully SaaS tenant, you (as a partner) must also behave and perform properly. You accomplish this by paying a monthly charge to a host or cloud services provider, usually via a subscription. Hardware, maintenance, and upgrades to the program, hardware, database, operating system, memory, and other components are paid for by the supplier. Multi-tenancy architecture is a single instance of a software application that serves numerous clients in SaaS applications.

Business Central with PaaS Platform

PaaS, or platform-as-a-service, is a cloud-based data and business software system. The data, which is hosted by Microsoft Azure, can be accessed from any internet-connected device. It is cost-effective, and both the business and the supplier handle it, whereas on-premises management is solely your responsibility. You are responsible for administering the application and its data under the PaaS paradigm, while your cloud provider will manage everything else. By outsourcing part of the management, you can save time and money by operating company software on the cloud.

Users can rent the software and use web-based Microsoft Dynamics 365 from anywhere in the globe over the Internet. Businesses don't have to worry about infrastructure and maintenance, such as installation, set-up, server, and software when they use PaaS. An end user's only need for running Microsoft Dynamics 365 is access to the internet. PaaS allows you to save more money by allowing you to alter the total number of user licenses. Because the subscription fee is based on the number of users, you can easily alter the number of users each month to accommodate changing personnel situations and prevent wasting money on wasted licenses.

There is no right or wrong answer when it comes to deciding whether your ERP solution should be installed locally on your own server or in the cloud. Whether you choose Business Central On-premise or Business Central Cloud, the decision is entirely dependent on your company's business needs and how much you are willing to invest when implementing or upgrading to a new ERP system.