SaaS, Hybrid, and On-Premise Models—Understanding the Distinctions for Microsoft Dynamics AX

The U.S. launch of Microsoft Dynamics AX 2009 for customers will take place at the AX User Group Summit on September 17 in Las Vegas, followed by formal launch in New York on October 14.  

There are several key areas where customers will find benefits from this latest release.  Most notable,  Microsoft has taken its vision on Software + Services and provided customers with a choice in how to "arrange" business systems.

Over the last thirty years, many of us have become accustomed to molding our business processes around how an application has been architected to handle specific business processes.  Anyone who is contemplating Microsoft Dynamics AX or has made a decision to deploy it for their operations probably did so because its model is that of building the applications to complement companies' unique business processes.

Microsoft's Software + Services vision is based on a reality that companies need choices when it comes to business system deployment.  This means some business processes may be best suited to SAAS environments, where others may be better suited to on-premise environments.  But which model is best suited for which processes and under what circumstances?

Each environment has its advantages and disadvantages. You'll also hear a lot about Service Oriented Architecture (SOA) -- the ability for Microsoft Dynamics AX to make use of Web Services.  As you begin to investigate on-premise and SaaS models for your business, many marketers have taken liberties with IT buzzwords, making it difficult to assess the advantages and disadvantages a given model or vendor is trying to describe.

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