Microsoft To Offer No-Cloud ERP Data Option

Microsoft will offer an on-premises-only deployment option for its Microsoft Dynamics 365 for Operations ERP software for enterprises that don't want to store data in the cloud.

More specifically, the new "local business data" deployment option will keep application servers and the tool's SQL database confined to on-premises installations, while Application Lifecycle Management (ALM) functions will still be managed in the cloud-based Microsoft Dynamics Lifecycle Services (LCS).

"Some organizations simply are not ready to store their company’s mission critical data in the cloud," Microsoft said in a blog post yesterday. "This requirement, in many cases, is due to industry regulations, country or geographic cloud adoption, recent data center investments, or an organization’s enterprise standards.

"For these customers, we are excited to announce a new deployment option that will not require their business data to be stored in the cloud. This deployment option, 'local business data,' will support running your business processes on-premises, supporting local transactions and storage of local business data, without replication of your business data to the Microsoft cloud."

Organizations will have the option to select OFF as a cloud synchronization option, so no business data will leave their boundaries. While perhaps preserving privacy and enhancing security, selecting that option will prohibit access to some functions, such as embedded Power BI, Aggregated Views and Azure Machine Learning services. Turning the cloud synchronization back on will re-establish access to those embedded intelligence functions.

Microsoft said enterprises will now have the following deployment options:

  • New and existing customers will have paths forward to license both local business data and cloud and edge deployments. Existing investments will continue to be accounted for in our licensing.
  • Customers can license local business data deployments via a Dynamics 365 for Operations license with Software Assurance/Enhancement Plan or a subscription model.
  • Customers with active Microsoft Dynamics Enhancement Plans or Software Assurance, may upgrade to local business data as they remain entitled to access new versions and updates.
  • Transitions to Dynamics 365 cloud subscriptions are available to customers with active Microsoft Dynamics Enhancement Plans or Software Assurance.
  • Cloud and edge software and services will be licensed under the existing Dynamics 365 cloud subscription licensing model.

The "cloud and edge" and "local business data" options are expected to be available this summer.

About the Author

David Ramel is the editor of Visual Studio Magazine.