Architecture of UDE environment in D365FO

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Dear team,

Is UDE environment is Tier 1 ? I mean to say Dev environment.

UAT/Sand box is Tier 2?

PROD is Tier 2?

Kindly elaborate each environment please. How it is connected with Application, database and Azure SQL server.

Please give me the thoughts. thanks

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Dynamics 365 Finance

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Lisa at AonC.com 1,062 Super User 2026 Season 1 on at

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Please tag the Dynamics product (or add it to Title) that your questions are related to.

Thank you!

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Martin Dráb 239,038 Most Valuable Professional on at

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These tier numbers aren't applicable to unified environments.

But yes, Unified Developer Environments (UDE) are developer environments.

I'm not sure what you mean by "Kindly elaborate each environment please. How it is connected with Application, database and Azure SQL server.". Every environment has both application files and a database; it's the same for UDE, USE and UPE. Please explain what you actually want to know about it (and failed to find on internet).

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CU10121822-0 306 on at

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As said, the TIER are not applicable for UDE, USE ,UPE environments. Please explain why?

Please give me the thoughts. thanks

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André Arnaud de Cal... 303,730 Super User 2026 Season 1 on at

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Hi,

To clarify, until now, Dynamics 365 F&O environments were deployed via LCS where based on an allocated performance level, environments were created based on fixed number of resources, e.g. 2 AOS. On cloud deployments, this was Tier 2 until Tier 5. Tier 5 has the highest number of resources to be able to host the largest load requirements. All there environments are running fully on Azure resources, also the database.

It is possible to deploy a development or demo environment via LCS in your own Azure tenant. This was Tier 1 where Dynamics 365 F&O was running with Azure emulators for e.g. file storage. The database is running within the VM on an on-prem SQL server.

When environments will be deployed via PPAC, the resources are elastic and will scale until an allocated performance, based on the size of your licenses. This is called Tier X and will be applicable to both production environments and sandboxes. You can then perform performance tests in a sandbox. This is like Tier 2-5 (SQL on Azure as well), but it starts with a lower number of resources and scales as per load on each environment.

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CU10121822-0 306 on at

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Sorry, not understood,

Till LCS hosted environment architecture well understood but still having confusion about PPAC hosted environment architecture.

Please explain me about TIER X. Is it applicable for UDE, USE, UPE environments?

Please give me the thoughts. thanks!

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André Arnaud de Cal... 303,730 Super User 2026 Season 1 on at

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Thanks for the reply. I will try to rephrase it a bit.

Tier X is introduced as replacement for different pre-defined deployment tiers. Instead of a fixed number of resources (e.g. number of batch servers or memory), it will start with a lower allocation. The resources will then be elastic. When more load is required, e.g. memory or batch servers can be added to support higher performance.

The maximum performance will be based on the license details. You get a kind of "compute units" for the number of users which will be the same calculation for all customers. In case you need more performance, then it will be possible to obtain additional "compute units" via the license. In this case, it is not a pre-defined tier 3 or tier 5, but X is elastic until your maximum entitled performance.

This tier X is only applicable to production and sandbox environment deployed via PPAC. So, indeed the UPE and USE type of environments. Existing environments will be migrated to tier X in future.

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CU10121822-0 306 on at

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Thanks Andrea for the response.

What I understood, here Tier X means EXTENSIBLE NOT FIXED.

I mean to say when we need to increase the servers based on requirement we can increase it. Earlier it was fixed (LCS hosted environment like Tier1, Tier2, Tier2).

Am I correct?

As you said, Tier X , is now only applicable for USE, UPE environments then what about UDE environment?

Please give me the thoughts. thanks!

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André Arnaud de Cal... 303,730 Super User 2026 Season 1 on at

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Hi,

the 'X' indeed refers to a variable. Note that you can't add resources yourself, This is being identified by the load on the environment itself. It will then check what to increase, e.g. more memory or more servers. It is elastic, like a lot of Azure components.

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CU10121822-0 306 on at

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So, what I understood based on Andrea suggestion that whenever the application think to increase the memory or servers like Batch, AOS etc. based on load , it will be managed automatically and there is no manual interaction. And it's handled by the MS.

Am I correct?

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André Arnaud de Cal... 303,730 Super User 2026 Season 1 on at

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Yes, you are correct in understanding. There is a maximum performance you get based on the license details per tenant. E.g. with 400 Finance users you get a higher 'X' tban a license with 20 Finance.

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