We frequently receive questions about the differences between Business Central On-Premise and the cloud version. To give you a better overview of both models, we have compiled some of the most important features for you here.
License & Infrastructure
Business Central On-Premise:
Business Central On-Premise has a perpetual license where you pay a one-time fee to own the software.
Enhancement plan amounting to 17 % of the license list price* (prerequisite for cumulative function and security updates as well as free software license upgrades to the latest versions)
Hosting takes place on your own server or in the private cloud. This gives you the greatest possible control over the system, but also requires additional investment in the infrastructure (hardware or hosting, energy, operating systems, etc.), CALs, anti-virus software).
Cumulative updates are provided, which can be installed manually at a freely selectable time.
Business Central Cloud:
The cloud version of Business Central is licensed on a subscription basis and you pay on a monthly or annual basis.
As Business Central is hosted on Microsoft Azure, you do not need your own hardware such as servers and do not have to install the software yourself.
Updates are automatically installed according to Microsoft's specified schedule.
Customization & scalability
Business Central On-Premise:
The on-premise version of Business Central can be customized in a versatile and flexible way and supports the extension and modification of central objects. To customize objects (tables, code units, pages, etc.) of your software, development objects must be purchased and a developer license is required.
If Business Central is hosted locally, you do not need an Internet connection to access your system.
Add-ons are provided by the service provider as an app file and installed via PowerShell.
Business Central Cloud:
In the cloud version of Business Central, most customizations are implemented via add-ons (in-house development or AppStore)
You can access Business Central in the cloud from any location and with any device, provided you have an internet connection. The speed depends on the internet service.
You can easily extend the functionality of your software by installing apps for the cloud version of Business Central via Microsoft AppSource.
Both the storage capacities for Business Central Cloud and Business Central On-Premise can be easily increased. The main difference between the two variants is that with Business Central Cloud the costs for the storage expansion are recurring monthly, while the storage expansion on-premise is a one-off purchase.
| On-Premise | Cloud | |
|---|---|---|
| License | Purchase (or subscription also possible) | Subscription or rental model |
| License costs | One-time license costs usually annual maintenance contract ( enhancement fee plan i. H. v. 17 % of the license list price)* | Monthly usage fee |
| Infrastructure and provision | Local server or hosting in private cloud (Azure) ALL systems are under control. You need hardware or hosting. | NO hardware necessary The cloud (SaaS) is located in the Microsoft Public Cloud. The environment is managed by Microsoft; You can only access an administration console (Admin Console) to create copies and backups of the environment (development and production sandbox). |
| Installation | Necessary | Not necessary |
| Software updates | Cumulative updates Must be imported manually | Automatic updates according to a predefined schedule |
| File system | Complete control over the file system | No access to the file system |
| Connection/ Internet | Internet independent Local network connection | Internet dependent Access is online (a minimum of bandwidth is required) |
| Data protection, security and reliability | On our own responsibility | Responsibility lies with Microsoft |
| Backups | Manual back-ups under your own responsibility | Automatic backup of back-ups by Microsoft |
* As at 1.4.2023. Prices and information without guarantee.
Ultimately, the decision as to whether you use your ERP solution on-premise or in the cloud depends on many different factors. How complex are your business requirements? How much are you prepared to invest in implementing or updating your ERP system?
We will be happy to advise you and work with you to find the best solution for you.
Disclaimer: The contents of this article are merely non-binding information and advice. bartolome röder AG accepts no liability for the accuracy of the information provided.
Do you have any further questions?
If you are interested in Dynamics 365 Business Central and would like more information, please contact us!
Tel: +49 (89) 21 111 848
E-Mail: vertrieb@br-ag.com
