Microsoft Dynamics 365 Business Central on-premises license
The Microsoft Dynamics 365 Business Central local (on-premises) version requires an upfront capital investment. It requires substantial IT resources to maintain and regularly update the system.
The ERP system in the on-premises perpetual licensing model
With Perpetual Licensing, the user is granted permanent usage rights. Perpetual Licensing is recommended if your organization prefers an upfront investment or wants to manage the solution internally, and run the software on your own premises (or, if subject to license mobility rights, the software will be hosted by an Infrastructure as a Service [IaaS] provider acting as your agent).
As of April 2025, new customers will no longer be able to purchase on-premises perpetual licenses. Existing on-premises customers with perpetual licenses will continue to be able to use the software as they are currently and will still be able to add users.
The ERP system in the on-premises subscription licensing model
With Subscription Licensing, you license rights to use the software only during the term of the agreement provided that periodic payments are made. This model decreases your initial investment and ensures the flexibility to adjust the scope of subscription license.
Subscription Licensing can be an excellent choice if your company prefers that the software is hosted and managed in the cloud-based ERP model by its implementation partner or a third party service provider. Optionally, the software can be deployed locally, on the customer’s premises. However, this is only possible if the partner company that implements Dynamics 365 Business Central on-premises offers on-going support and maintains control over system management and administration.
Microsoft Dynamics 365 Business Central online
Why choose the ERP system in the SaaS model?
This version of the Microsoft Dynamics 365 Business Central ERP system is offered only in the Software as a Service model, which means that the whole basic infrastructure, middleware, software and application data are located in Microsoft Azure data center. Microsoft manages efficiency and is responsible for application and data security. The customer does not incur additional costs related to the purchase, maintenance, or replacement of hardware comprising the platform and infrastructure.
In line with this approach, you can start working with the system quickly, minimizing the initial costs at the same time.
Microsoft Copilot in Dynamics 365 Business Central is available in online version only. It has been included in the Business Central Essentials and Business Central Premium licensing models, which means that each user of the latest online version of the system has access to AI tools. Copilot in Microsoft 365 tools, however, requires a separate license.
