Local Business Data for Dynamics 365 Finance and Operations: Microsoft updates guidance as customers weigh options

Microsoft continues to improve the local business data (LBD), or on-premises, deployment model for Dynamics 365 for Finance and Operations (D365FO). And at this week's Summit EMEA 2018 event in Dublin, company officials have explained to the AX and D365FO user audience that LBD remains an approach optimized for organizations that have ruled out Microsoft's cloud hosted model due to data residency or connectivity issues.

But the reality of LBD deployments so far, according to partners who have worked with D365FO customers, is that customers are considering a range of interrelated factors before making a decision. Customers do consider low connectivity and data residency and sovereignty restrictions, partners say, but these organizations have found other factors that influence the decision, including upfront capital expense, long term cost of ownership, and the support roadmap for LBD.

Views also vary related to LBD's readiness. While one implementation expert told us his clients so far have concluded that LBD wasnot yet ready for their production needs, another firm reports that they have multiple clients preparing to go live with the LBD current solution profile.

Real world considerations: LDB or cloud

Companies plan for a D365FO deployment with different expectations at the start of the process, one solution architect told us. Some begin with the expectation that they will go with LBD, while others wait to make a decision later in their planning. Some have started believing LBD was the right choice, only to change course and commit to cloud. Microsoft has been supportive of customers choosing either route, the solution architect said.

There appears to be no single journey to a correct decision on cloud or LBD deployments.

Upfront capital costs haves scared some companies away from LBD. ...