D365 On Premise

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Microsoft Dynamics 365 for Operations Local Business Data (On Premise)


It's official, Microsoft has confirmed the release of an on premise deployment of Dynamics 365 for Operations (formally Dynamics AX).


The reality is some organizations are just not ready to store their company’s “mission critical data” in the cloud.  The driving force behind many companies’ pushback of a cloud deployment is related to industry regulations, country or geographic cloud adoption, recent data center investments, or an organization’s enterprise standards.


This new option will not require companies’ business data to be stored in the cloud.  This deployment option called “local business data” will support running your business processes on-premises, supporting local transactions and storage of local business data, without replication of your business data to the Microsoft cloud.


In these cases, the typical replication of business data in the Microsoft cloud (referenced in the cloud and edge scenario) is simply switched off. With this option, customers now have choice – an option to turn ON or turn OFF cloud synchronization of their business data. If customers turn OFF cloud synchronization, no business data leaves their trustee’s boundaries.


Also, functions like, embedded Power BI, Aggregated Views and Azure Machine Learning services based efficiencies are not available when Cloud Data synchronization is turned OFF. Customers can choose to take advantage of the embedded intelligence functions by simply turning ON data synchronization to the cloud.

Local Business Data (aka On Premise)


- Code implementation handled by Partner and Customer, with automatic validation via LCS

- Customer/Partner manages own data infrastructure and application servers

- Optional cloud-enabled services for a la carte purchase

- SA/BREP or Subscription Pricing (perpetual licenses similar to prior versions of Dynamics AX with full upgrade capabilities)

Cloud-based services worth mentioning


While services like Power BI are technologically available to those who opt for the on premise option, they will have to buy the license separately. Additionally, there are services now (Cortana Intelligence Suite, Machine Learning, Azure IoT) and future services that will require a cloud or cloud/edge deployment. While it is unlikely that Microsoft will build on premise connectors for these services that surround Dynamics 365, it is possible that partners will fill this void.

LCS In the Cloud



One component of this equation, which will definitely remain in the cloud is Lifecycle Services.  While the data and application servers can now be hosted locally, the management tools to monitor, deploy and maintain Dynamics 365 for Operations environments will stay on Azure.

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