Comparison between D365 Business Central- Onpremise vs Cloud Online -What to choose ?
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With the advent of Business Central, there is a constant buzz to upgrade to the latest version. This raises various questions like
- How will it benefit the company?
- What is the cost involved?
- Do I need to invest in upgrade again after Business Cenral?
The main benefit of upgrading from NAV to Business Central is it puts your ERP on the cloud!
Why Upgarde?
- Microsoft Dynamics NAV is re-branded to D365 Business Central.
- Microsoft will continue to support NAV but new updates on the software won’t be released.
- All new features will be applicable to Business Central
Let’s compare Business Central – On-premise vs Online
| D365 BC On-premise | D365 BC Cloud Online | |
| Adaptability | Highly adaptable and is for organisations which have heavy complex customization touching the core objects of the System. | Not as adaptable as On-premise. All customization needs to be implemented by extensions and does not allow access to touch the core objects |
| Accessibility | Built for on-premise deployment on a server. It can also be hosted in the cloud, but it can’t offer the same seamless experience as a fully managed cloud-based solution. | Gives you all the capabilities of the on-premise version, plus the benefits of a true cloud solution.Easy 24/7 access anywhere from any device, real-time information flow, |
| Customization | Supports Extensions as well as core object changes | Supports Extensions only, easy integration using Web API |
| Integration | Limited control on applications on Power platform | Can install and connect to addons on AppSource. Supports integration with application built on Power Platform |
| Upgrade | Can be easily upgraded to the Cloud using the wizard but all customizations need to be converted to Extensions | Seemly automatic Upgrades. This means if you solution is on the cloud you don’t need to worry about upgrades it upgrades itself. (No cost upgrades) |
| Hosted | Hosted on Azure. Additional investments to be made in existing hardware and IT infrastructure | Hosted on Microsoft cloud. With Business Central Cloud, everything is included in one fee—software, cloud hosting, and management services |
| Licensing | No concurrent Licence. Instead of NAV’s Limited User license, Business Central has a Team Member license, which offers the same level of access and functionality. | No concurrent Licence. Instead of NAV’s Limited User license, Business Central has a Team Member license, which offers the same level of access and functionality. Zero new license costs and no recurring license renewal expenses with a predictable monthly subscription |
What to choose?
The choice between Business central On-premise and online entirely depends on your business needs of your company. If you aim to move all your data to the cloud then Business Central Cloud is your solution or If you believe in controlling your solution then Business Central On-premise will serve you better.
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This was originally posted here.

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