Business Central On-Premises

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Business Central On-Premises

Microsoft Dynamics 365 Business Central on-premises fits the needs of midsize businesses with core business needs. It helps organizations connect their financials, sales, purchase, inventory, projects, service, and operations. With Dynamics 365 Business Central on-premises, you must license at least one of Dynamics 365 Business Central Essentials or Dynamics 365 Business Central Premium users. Additional access to the service functionality by other users is licensed with Dynamics 365 Business Central Team Members. Dynamics Business Central functionality is delivered through the Dynamics 365 Business Central Essentials or Premium User.

Why choose on-premise over cloud version?

Local client

Unlike Business Central Cloud, Business Central On-premise can be used through both the local desktop Windows client and the web client. Users of Dynamics NAV may miss the desktop client in the cloud version of Business Central, but will get it by choosing the on-premise version.


With the on-premise version you control the update frequency yourself, which means that when it is time for the application to be updated, you have the opportunity to test update and test the application before the update is put into operation. You do not have this control with the cloud version of Business Central, where the updates come automatically from Microsoft and do not allow you to opt-out or postpone them if the solution does not work properly with an extension after an update.


With the on-premise version of Business Central it is possible both to adapt the solution via Extensions or, as you know it from Dynamics NAV, directly in the basic code. With the cloud version it is only possible to make adjustments via Extensions.
With Extensions it is important to be aware that Microsoft does not guarantee for them, which of course also applies to the Extensions found on Microsoft App-Source, which is developed by 3rd party extension developers. In addition, you should also be aware that only the supplier who has made an Extension can change it.

How to buy Dynamics 365 Business Central on-premises

Dynamics 365 Business Central on-premises is licensed through one of two licensing models: Perpetual Licensing and Subscription Licensing. With Perpetual Licensing, you license the software with permanent usage rights. So, you can use the licensed version of the software for as long as you choose. Perpetual Licensing might be for you if you prefer an upfront investment or if you want to manage the solution internally, and will run the software on your premises (or, subject to license mobility rights, have it hosted by a third party Infrastructure as a Service [IaaS] provider acting as your agent). With Subscription Licensing, you license non-perpetual rights to use the software, meaning you can use the software only during the term of the agreement secured by periodic payments. This model lowers your initial licensing costs and provides you with the flexibility to increase or decrease subscription license counts from one subscription term to the next. You can use Subscription Licensing when you want to have the ERP solution hosted and managed as Software as a Service (SaaS) by your partner or any third party. Alternatively, the software may be deployed on your premises, provided that your Dynamics 365 Business Central on-premises partner provides day-to-day management services and maintains sole control over the solution. There are significant licensing differences between Perpetual Licensing and Subscription Licensing, as illustrated below.