Business Central on Premise vs Cloud

Costs And Budgets

Business Central in the Cloud Business Central On-premise
Licensing Model Subscription model based on monthly fees. Perpetual license – one-time payment to own the ERP software in perpetuity.
Hardware Requirements Not necessary – Business Central is hosted on Microsoft Azure. Requires investment in server hardware and space on company premises.
Maintenance Expenses None – all maintenance is carried out by Microsoft or partners. May involve large expenses associated with maintaining, upgrading or adding servers.

Ownership And Control Over Business Central

Business Central in the Cloud Business Central On-premise
Data Storage Business data is stored on Microsoft Azure servers. Business data is stored on on-premise servers, giving you complete ownership and control.
Data Access Access to data only possible through application programme interfaces (APIs) Full access to all data stored on-premise.
Product Updates Automatic updates ensure that you always have the latest features. Updates require manual installation on a regular basis.
Backups And Disaster Recovery Microsoft guarantees 99.9% uptime and multiple backups. Relies on in-house IT resources to maintain backups.

Flexibility Of Use

Business Central in the Cloud Business Central On-premise
Customisability Not as flexible and adaptable as on-premise version. All customisations must be implemented through Extensions. Very flexible and can be tailored to business needs. Supports Extensions as well as core object changes
Connectivity Requires connectivity to the Internet. Does not require Internet connectivity to work.
Scalability Easily scalable – only requires subscription fees for additional users. Requires additional investment in server hardware or systems

Integration With Cloud Apps and Add-ons

Business Central in the Cloud Business Central On-premise
Add-ons You can access and install apps for Business Central through AppSource AppSource is not available, so you cannot install apps
Power Platform Applications Supports integration with Power Platform applications (Power BI, Power Apps, Power Automate, and Power Virtual Agents) Requires a data gateway to connect Power Platform apps with data on Business Central on-premises.
Microsoft Teams Can integrate with Microsoft Teams with the 2020 Release Wave 2 update. Not available for Business Central on-premises.


The Choice Of Cloud Or On-premise Business Central Depends On Your Needs.

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