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Traditionally companies use systems implemented in On-Premise mode. In particular, legacy systems are implemented on-premise. The term on-premise refers to the type of installation of a software solution and, in this case, the software is installed on the client's servers or on a third party contracted by the client. The client is responsible for the administration, updating, security, backups, and maintenance of the software.

In a Cloud implementation, in particular, in a SaaS service (Software as a Service), the company consumes software and can always stay current with the upgrades and maintenance releases per year by Microsoft.

There are many variables to consider in order to decide on the best suitable option for a particular company, which includes the following factors but is not limited to:

 Costs

 Compliance

 Scalability

 Features

 Update frequency

 Security

 Performance

 Data integration with other systems

 Resources and skillset

 Change capabilities

If there are no legal or technical restrictions, do not hesitate to go for the Cloud-based online option as this will be the most viable, maintainable, and scalable option.

I will argue about this recommendation with some relevant aspects:

 Features. Microsoft Dynamics 365 offers a series of functionalities that can only be implemented on the On-Line option. These features are proactively announced in Microsoft's portal and public announcements; therefore, the client can plan well ahead of any changes in the utilization of these features to improve their day-to-day activities. The On-Line option will always have a competitive advantage due to richer and technologically advanced functionality. With On-Premise, customers have to wait much longer before being able to take advantage of them.

 Update frequency. As mentioned in this book, the Microsoft update rate of On-Line applications is every six months, while updates of On-Premise versions are once a year. In the real experience, customers don't update their software every year as there is no direct push from the vendor. Therefore, On-Premise clients frequently have very old installed versions, which are obsolete as they have not taken advantage of many of the new features.

 Resources and skillset. To keep the software updated in the On-Premise mode, it is necessary to have access to specialist resources that have these skills. This means that either you should hire full-time staff or contractors or be dependent on hiring an external resource/vendor to complete the software update on your behalf. In the On-Line mode, Microsoft's dedicated team of engineers take care to run all relevant updates.

 Infrastructure. On-Premise solution implementations essentially require the purchase and installation of a series of servers. In addition, if the solution needs to be made redundant, a full lifecycle of duplication should be made that adds a stream of requirement time, resources, cost, and risk. In the On-Line mode, creating new environments and redundant environments, increasing storage capacity, and making backups are very simple, along with quick administration and configuration tasks.

Alistair Wallace, Senior Director of Technology Solution Delivery, Coca-Cola Consolidated, Inc.

“Cloud computing and Software as a Service (SaaS) has drastically changed the way companies look at utilizing software. Everyone today is accustomed to downloading an app on their phone to meet every need; many now have the same level of expectation in the workplace. Today, throughout the corporate world, individuals are deciding to head in this direction alone, rather than seeking any technical expertise or guidance. The significant benefit is that any company, large or small, can now utilize enterprise-grade solutions. The big downfall is that many of these SaaS solutions/platforms are designed to meet a specific niche need. The technical knowledge and foundational data integration requirements and the cost associated with keeping everything connected present a much more significant hurdle over time as more and more of these solutions are stitched together. It is the local IT department's responsibility to provide mechanisms to help with how the decisions are being made to onboard these solutions and assist as early as possible to enable success. It is impossible to stop or even slow the movement to the Cloud, but there are ways in which we, as technologists, can make it much less painful.”