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Unified Developer Environment vs Cloud Hosted Environment

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Posted on by PM-06112118-0

Can anyone give me a rundown of the differences between these two in terms of what is possible/not possible in each?

So far the only thing I have noticed is that you cannot use dataverse in a CHE whereas you can in a UDE. Because of this, you cannot use the Universal Tax API in a CHE, but you can in a UDE.

Is anyone aware of any other restrictions on CHEs as opposed to UDEs, or could they refer me to documentation that explains it?

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Dynamics 365 Finance

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André Arnaud de Cal... 305,797 Super User 2026 Season 1 on at

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Hi,

There are various differences between the two types of development environments. I'm not sure if your question is only related to usage of features or if you want to know more differences, like cost or using local development.

From a technical point of view, a UDE comes with an environment type similar to a sandbox or production environment. The database is also Azure SQL, where this is a local SQL Server on a CHE. For the storage related to attachments, the CHE relies on Azure emulators, where UDE is using the same technology and configuration as the sandbox/production environments.

All Power Platform-based additions/services can be used with a UDE, where a CHE by default only supports Virtual Tables. Note that all Copilot-related features are using the linked Power Platform environment.

There are various blogs from people where they tell about their first experience using a UDE and also list some differences. E.g. : My Experience Moving D365FSC Development From CHE to UDE - Alex Meyer

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Deepak Agarwal 9,078 on at

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The sort answer is UDE comes with more possibility and wider compatibility for PPAC tools.

Now a detaied run though may be depends on actual use case and there are lot of online resoruces available to learn more around this.

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