
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 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.
The ERP system in the IaaS model
Microsoft Dynamics 365 Business Central can also be deployed on-premises on cloud infrastructure, for example in a Microsoft Azure environment. This approach allows organizations to benefit from the flexibility of cloud infrastructure while retaining greater control over the environment, its configuration, and its maintenance. Microsoft also states that Dynamics 365 licensed users may exercise dual use rights, which provide access to equivalent on-premises or private cloud deployments; however, these rights are non-perpetual and expire when the subscription ends. For on-premises deployments or deployments hosted outside the Business Central online service, organizations should also note that licenses for supporting systems such as Windows Server, SQL Server, and the applicable CALs may be required separately.
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.

