As seen in the above chart if you select an On-premises deployment then you will have to think about all the aspects starting from networking to Applications. There will be a cost involved for every aspect, in addition, you might have to think of an IT consultant, a separate server room, Cooling technology (ex: AC), a firewall, DR and Backup, etc.
In the IaaS or PaaS deployments, as you see, when compared to On-prem deployments, there is a reduction of the facts that you have to consider on your own. IaaS provides access to resources such as virtual machines and virtual storage, and PaaS provides execution environments, application development, and deployment tools.
When it comes to a SaaS deployment all the above factors will be managed by the service provider, for instance, if you want to deploy the Dynamics 365 Business Central SaaS version all those aspects will be managed by Microsoft itself.
Let's look at some perspectives on deploying BC on SaaS and On-Prem
Costs & Set-Up
SaaS
- The cloud version is licensed on a subscription model, and you’ll pay monthly or annually.
- As it is hosted on Microsoft Azure, you will not require hardware such as servers in-house or installation of the software.
- Maintenance expenses will also be lower, as updates are scheduled automatically and managed by Microsoft or Microsoft partners.
On-Prem
- On-premises has a perpetual license, where you pay a one-time fee to own the software.
- It does require investment in hardware and space, as you will need servers to host the solution.
- You might also require in-house IT resources to help maintain and upgrade the software.
Ownership, Recovery, and Upgrades
SaaS
- Data is stored on the Microsoft Azure servers, and you access your instance through a web browser.
- All software updates are automatic, allowing you to have the latest version available.
- Multiple backups are done for you, and Microsoft offers a 99.9% uptime guarantee.
On-Prem
- Data is stored on your local hardware on your on-premises servers, and you have full access to all the data stored. You access the software locally via individual workstation web browsers.
- Software updates are not automatic; you will need to install, test, and deploy updates with the help of your in-house team or Dynamics partner.
- Your IT team must maintain backups and have a disaster recovery plan in place.
Customizations, Mobility & Scalability
SaaS
- The cloud version is not as customizable compared to on-premises. Most customizations are implemented through extension.
- You can access the cloud from any location, on any device, if you have an internet connection. Speed is reliant on internet service.
- It’s also easily scalable as you can add more users for an additional fee.
On-Prem
- It’s a lot easier to customize the on-premises version and it supports extensions and core object changes.
- You do not need an internet connection to access the on-prem version as it’s hosted locally.
- It’s less easy to scale up quickly as you require additional investment in hardware or systems.
Integrations and Addons
SaaS
- You can easily extend the functionality of your software by installing apps for the cloud version through Microsoft AppSource.
- Supports seamless integration with other Microsoft products such as the Power Platform.
- “Power BI” is fully integrated with the SaaS version, and free Power BI basic licenses are available.
- You can easily integrate MS Teams as there is an app that lets you connect Teams with your business data.
On-Prem
- Unfortunately, you cannot use App Source to install apps with the on-premises version.
- You can integrate with the other Microsoft solutions like the Power Platform, but it will require a data gateway.
- “MS-Teams” is unable to integrate with Business Central's on-premises version.
