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D365 FO is designed primarily for the cloud, so Cloud should be the default option. That said, there are three main reasons to consider On-premises:
1. Data residency requirement. Some countries or industries or companies have strict data residency requirement, i.e. business data can not leave the premise. In this case, on-premises is the only choice.
2. Poor network connectivity to Azure data centers but good connectivity to local area network. In this case, an on-premises deployment may give users better performance and usability.
3. Transaction volumes so large that it exceeds the current Cloud topology capacity. For example, the current largest Cloud topology has Azure SQL P15. If the transaction volume can not be handled by the P15, on-premises is the alternative.
Some bad reasons to go on-premises:
1. It costs less. We encourage you to consider all costs associated with implementing and supporting the solution. Check out the TCO worksheet Cloud vs On-premises on the CustomerSource site.
2. I already have hardware in my datacenter. In fact, hardware cost is a small portion of the TCO. Check out the TCO worksheet for a complete comparison of cost.
3. I already have AX2012 on-premises, so upgrading to D365 on-premises will be easier. Actually, upgrading from AX2012 to D365 Cloud is more streamlined.
Would you give me the link to TCO worksheet Cloud vs On-premises?
@Daisuke Kobayashi, here's the link to the TCO worksheet:
Thank you Tao Wang for sharing it!
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