What is the difference between deploying Dynamics 365 Business Central On-Premise vs PaaS vs SaaS environments?

Sam Dynamics 365 Business Central 17 February 2021

Reading time: 2 - 3 minutes

When it comes to hosting your business software system Microsoft Dynamics 365 Business Central there are a few options, it just depends on your business requirements.

On-Premises

Hosting your business software Microsoft Dynamics 365 Business Central on-premises is just that. The data is stored physically on your site using a physical server to host and operate the ERP system and is the responsibility of the business. This type of hosting does have its benefits and is often used when further customisations are needed to completely tailor-make the software to the specifics of the business, no matter how complicated they might be. However, the security of the data can be hard to manage meaning data can be vulnerable to breaches. Data can also only be accessed within the data centre where the data is physically held, meaning that working from outside of the office is impossible. Often the on-premises option is a larger investment than SaaS or PaaS in both time and money.

PaaS

PaaS or platform-as-a-service hosts data and the business software system as part of the cloud. Hosted by Microsoft Azure the data can be accessed on any device connected to the internet. It is cost-effective and is managed by both the business and the provider, whereas on-premises is managed entirely by you. Under the PaaS model you are responsible for managing the application and its data and the provider, Tecman, look after everything else. By running the business software on the cloud you can save time and costs by outsourcing part of the management.

SaaS

Saas, otherwise known as software as a service is the most popular host of choice. The partner, Tecman, takes care of every aspect of the hosting, from the network to the application and is the easiest option available. It is the most cost-effective option and is available on a subscription basis and able to scale and grow with your business. There is no need to hire additional infrastructure as the entire solution is managed through the cloud, making it easy and cheaper to operate.

The diagram below shows visually who looks after each individual section of your business ERP software when deployed in each environment.