Business Central: On-Premise or Cloud-Based? An Analysis of Pros and Cons

In recent years, the migration to cloud solutions has dominated the enterprise IT landscape. However, for some companies, the choice between an on-premise and a cloud-based solution can be complex. This is particularly true in the case of Microsoft Dynamics 365 Business Central, where both options are available. In this article, we will examine the pros and cons of the on-premise version of Business Central and argue whether it still makes sense to opt for this solution.

Advantages of the On-Premise Version

• Full Control: With Business Central on-premise, companies maintain full control over their data and hardware resources. This can be crucial for companies operating in highly regulated sectors or with specific compliance requirements.
• Unlimited Customization: The on-premise version offers greater flexibility for customization and modification of the software to meet specific business needs. Companies can implement custom changes without being bound by the restrictions imposed by a cloud environment.
• Integration with Legacy Systems: For companies with complex legacy systems, the on-premise version of Business Central can offer a smoother path to integration, allowing for a gradual transition to a more modern solution.

Disadvantages of the On-Premise Version

• High Initial Costs: The on-premise version requires a significant initial investment for purchasing software licenses and implementing the necessary hardware infrastructure. This can represent a substantial financial burden for small and medium-sized businesses.
• Maintenance and Upgrades: Companies are responsible for managing, maintaining, and upgrading the system, which requires additional resources in terms of personnel and time. This can increase operating costs and reduce overall efficiency.
• Scalability Limitations: Companies must size the infrastructure based on their anticipated needs, which can result in limitations in terms of scalability. In case of sudden load spikes or growing processing demands, on-premise infrastructure may not be able to adapt quickly.

So what should I choose?

While cloud computing continues to gain ground in the business world, the on-premise version of Microsoft Dynamics 365 Business Central remains a valid choice for some companies. However, it is important to carefully evaluate the pros and cons of both options and consider the specific needs of the company before making a decision. Ultimately, there is no one-size-fits-all solution, and the choice between on-premise and cloud-based will depend on the needs, resources, and IT strategy of each company.