In my previous article I’ve described the differences between MS Dynamics 365 cloud and MS Dynamics 365 On-premise. But there’s something I’ve been hiding from you: Microsoft Dynamics 365 Hybrid version for Operations (AX) and Hybrid usage of Dynamics 365 based on Dual user rights. I’m sorry, I’ll try to keep up.

What is Hybrid

Microsoft foresaw the confusion of their customers on the taft choice between On-premises and Cloud, and offers a Hybrid, that combines them both. This means that Dynamics 365 cloud may be partially operated On-premise. You can also run certain Dynamics 365 modules locally, while others can be obtained from the Microsoft cloud.

All for AX

MS Dynamics 365 Hybrid is already available for Operation users (AX). It allows to run multiple instances of Dynamics apps as one single solution and manage it with Microsoft Dynamics Lifecycle Services. The architecture of the solution from Microsoft Dynamics Lifecycle Services allows to run businesses separately.

dynamcs 365 ax hybrid

With Hybrid you can update data with no connection On-Premise and then sync with the Cloud. Data is stored on the local server and then pushed to the online when connection gets stable. Hybrid offers numerous back-ups and in case of a trouble you can just download a fresh version of your data.

Dual User Rights

If you are not running Dynamics 365 Operations, but using any of these: Dynamics 365 Sales, Customer service, Field Service and Team Member, There’re some good news for you! December 2016 Update brings User Dual Rights and allows hybrid access to other users of Dynamics 365.

Here is what Microsoft says about in the licensing guide:

“One of the advantages of Microsoft Dynamics 365 is the option to deploy either in Microsoft’s cloud or in a private on-premises or partner-hosted cloud. In some cases, customers may want to deploy both modes simultaneously, for migrating a Microsoft Dynamics on-premises deployment to Microsoft Dynamics 365.

“Dual user rights” gives ability to run cloud Plan 1 or Plan 2 and benefit from running both Cloud and Premise and not buying services, that are SIMILAR to Cloud version, but actually purchase their ORIGINAL solutions from Online.

Plan 1 of Dynamics 365 Cloud includes Dynamics 365 for Sales, Dynamics 365 for Customer Service and Dynamics 365 for Field Service and the applicable dual use rights. Plan 2 includes Dynamics 365 for Sales, Dynamics 365 for Customer Service and Dynamics 365 for Operations and the applicable dual use rights.


Dynamics 365 Hybrid Dual user rights


*Sales and Customer Service will receive Dual Use Rights to CRM Professional, and Team Members to CRM Essential, prior to Dynamics 365 (On-Premises) release. **Field Service (On-Premises) functionality availability targeted for early Calendar Year 2017. Future functionality is not guaranteed


Put your seat belts on, because MS is breaking the rules. The Cloud version of Dynamics 365 subscription offers rights that are equivalent to On-Premise client access license and includes license for a server. And vice versa, On-Premise server license allows to access Cloud. Dual User rights are not perpetual. This simply means that they expire with the cloud subscription.

Customers who have purchased Dynamics 365 and are entitled to On-Premises software can obtain their software as follows. More about licensing on Microsoft: Volume Licensing Service Center (VLSC), CustomerSource (registration may be required).

Dynamics 365 Hybrid with dual user rights is the optimal solution for those who afraid of moving business entirely into the Cloud for a special security reasons, but still want to get the best experience of Dynamics 365; or Hybrid can be a good start towards the Cloud version and all its bonuses.

UPD Feb, 28: MS Dynamics 365 for Operations will be available On-Premise in June 2017.

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.