Cloud vs. Local Install: How to Choose the Right Approach to Microsoft Dynamics ERP for Your Organization

Wasn't it Hamlet who once said, "To cloud, or not to cloud...that is the question". No? Maybe that's not exactly right, but one thing is for sure: deciding whether to install a Microsoft Dynamics ERP solution locally on your own server or host it in the cloud can have a major impact on your organization's long term operations. And just like any major business decision, each option has pros and cons that must be considered prior to purchase. To help with this decision, we've put together a handy guide to give you information you need before you buy.

Up in the Air: What to Consider with the Cloud

1) Initial Cost

Cloud-based solutions eliminate one of the biggest challenges of tradition on-premise ERP solutions - initial cost.

When estimating the cost of a cloud-based Dynamics ERP solution versus on-premise, factor in both the software license costs and the cost for your IT department to support a local installation in terms of both time and money.

The cost structures of Dynamics ERP products such as AX, SL, NAV, and GP will vary depending on the size of your organization and how many users will be working within the software.

When estimating service-related costs, measure out the duration of the project versus the pay of your IT team members. Do some research to identify the IT team's responsibilities related to a cloud deployment versus the on-premise approach they likely understand better. Understand how much upkeep your organization typically needs, and where your best and brightest should be focusing their efforts. Even with a superb IT team, the cost of a local install may still be too high ...