Dynamics 365 Enterprise Edition is available in two versions: Online (Cloud) and Offline(On-Premises). This article can help to choose the right Dynamics to fully satisfy your organisation’s needs.

Dynamics 365 Online

Dynamics 365 Online is the most popular version and the easiest way to keep business running.

  • No spendings on maintaining (no servers needed, hardware, specialists);
  • You are always up-to-date;
  • Receive updates before on-premises version;
  • Increase ease of use and reliability;
  • Extra mobility with extended features of mobile and tablet apps;
  • Your data is safe and protected by Microsoft’s 5 levels of security;
  • Backup, restore and disaster recover data by ISO27001 & EU standards;
  • Always stable and predictable subscription on a monthly basis;
  • Best practices of Office 365;
  • Can be easily integrated with Sharepoint, Skype, Hosted Exchange

Licensing

Online version comes on Per Plan basis (Plan 1, Plan 2), Per App (Sales, Fields Service, Operations, Project Service Automation, Customer Service, PowerApp, Marketing) and Team Members users.

Dynamics 365 On-Premises

Dynamics 365 On-Premises version is for those who like to stay in control:

  • Run your own server;
  • Maintain it by your in house personnel or outsourcing services;
  • Control all updates and upgrades;
  • No data limits, only by your server;
  • Full data ownership
  • Different types of subscription or purchase based on Microsoft Volume Licensing

Licensing

On-Premises version is available only on Per App basis (Sales and Customer Service) and Team Members.

Main features

If you are still not sure what to choose, here’s some differences in versions on main MS Dynamics 365 features:

Feature Online On-Premises
3rd party S2S Inbound Authentication
Advanced Service Analytics
Analyze with Power BI (requires Power BI)
App Source
App designer and sitemap designers
Business process analytics (requires Power BI)
Connected Field Service
Customer backup and restore
Customer Insights service
Data Export service
Document suggestions
Dynamics 365 administration
Dynamics 365 Admin Role in Office 365
Dynamics 365 App for Outlook enhancements
Dynamics 365 Connector Updates for Power App and Flow
Editable grids
Exchange booking integration
Field Service enhancements
Gamification
Mobile authenticated mashups
Mobile homepage with Relationship Insights
Mobile management enhancements
Mobile Offline Data API
Mobile UI productivity
Modular business apps
Office 365 Groups enhancements
Online customer backup and restore
Partner Portal enhancements
Portal service enhancements
Project Service Automation enhancements
Relationship Insights
Relevance Search
Resource scheduling optimization
Scheduling unification
Sovereign cloud Germany
Task-based experiences
Threat management with SIEM
Visual process designer


As you can see from the table above, only Cloud version includes:

  • Ms Dynamics 365 Fields Services, Ms Dynamics 365 Operations, Ms Dynamics 365 Project Service Automation;
  • It has increased artificial intelligence, customisation (App and Sitemap designer) and mobility.
  • Extra use of MS Office 365.

UPD March, 1 : Office integration table released

 

Feature Microsoft Dynamics 365 (online)/Dynamics 365 (on-premises)
Email – Dynamics 365 App for Outlook Both For more information, see Deploy Dynamics 365 App for Outlook
Email – Dynamics 365 for Outlook (aka Outlook client) for Exchange Online* Both
Email – Dynamics 365 for Outlook (aka Outlook client) for Exchange on-premises Both
Email – Monitor mailbox health using the improved server-side synchronization performance dashboard Both
Email – Server-side synchronization Test connection to Exchange Online Dynamics 365 (on-premises) only
Email – Server-side synchronization Test connection to Exchange on-premises Microsoft Dynamics 365 (online) only
Email – Server-side synchronization – connect Microsoft Dynamics 365 (online) with Exchange on-premises Microsoft Dynamics 365 (online) only
Email – Server-side synchronization – connect Microsoft Dynamics 365 (online) to Exchange Online* Microsoft Dynamics 365 (online) only
Email – Server-side synchronization – connect Dynamics 365 (on-premises) to Exchange on-premises Dynamics 365 (on-premises) only
Email – Server-side synchronization – track emails, appointments, tasks, and contacts immediately when manually tracking from Dynamics 365 for Outlook and Dynamics 365 App for Outlook Both
Email – Track Exchange email activities automatically with folder tracking Both
Delve* (Exchange Online optional for attachments). SharePoint Online license required Microsoft Dynamics 365 (online) only
Delve (Exchange on-premises) Not applicable
Export to Excel completely redesigned Both
Immersive experience, Excel Online* Microsoft Dynamics 365 (online) only
Office 365 Groups (Exchange Online)* Microsoft Dynamics 365 (online) only
Office 365 Groups (Exchange on-premises) Not applicable
OneDrive for Business (online). OneDrive for Business and SharePoint licenses required for each user* Both
OneDrive for Business (on-premises) Not applicable
OneNote (online)* Microsoft Dynamics 365 (online) only
OneNote (on-premises) Not supported
SharePoint Online* Both
SharePoint (on-premises) Both
Skype for Business (online)* Both
Skype for Business (on-premises) Both
Excel templates Both
Word templates Both
Yammer (online) Both
Yammer (on-premises) Not applicable

 

If these features are necessary for your organisation or you’re planning to use them in the future, you should consider go Online or Hybrid version (it’s a dual use of Online and On-premises version, that will be available soon). Find out more about Dynamics 365 Online and On-Premises price and licensing.

Note: UDS Consulting provides high quality Microsoft Dynamics CRM & Dynamics 365 solutions, starting from CRM Online Customization and up to long-term On-Premise Projects with Agile methodology, industry modifications, multiple system integrations for EU, AU and US based companies.