Now That Dynamics AX Is Available As a Service, When Does It Really Make Sense?

The spread of Software as a Service (SaaS) is now making it possible for users to gain access to Dynamics AX via the Internet instead of going through a sometimes painful installation process.

The big advantage of SaaS for AX users is that, instead of having to carry out a full implementation, with a complete license and the purchase of appropriate hardware, customers can get set up quickly and avoid significant startup costs.

In many respects, it's the old rent-versus-buy decision. When you rent, you avoid making long-term financial and other commitments, but you never have full control of the system.

For the smaller company trying to preserve cash, SaaS can be a wonderful idea. There are no upfront costs-in effect, they are spread out over many months. Because payment is on a per-user basis, a smaller company can keep monthly operating costs down.

There are also no setup chores for the customer, since the Dynamics AX application is hosted by the "landlord," or VAR. The customer depends on the hosting company's technical staff to support and optimize the hardware.

In the area of ongoing costs, the user avoids two big ones: training and maintaining a large IT staff. Ongoing application development and modification is also handled by the VAR. For the ongoing monthly rent, the user receives the same development and implementation benefits as a customer with fully installed Dynamics AX.

What about the downside? Like any renter, the SaaS customer misses out on some potential benefits of ownership. From a functionality viewpoint, the customer is limited by its connection speed, which is almost certainly going to be slower than an in-house server. The hosting company also needs to be reliable-whenever its server is down, so ...