The on-premise model is a "premise hosted" deployment where you purchase perpetual licensing for Dynamics 365 and host the software on servers in your environment or in a co-location data center like Microsoft Azure.
In the cloud model, you pay a per-user/month fee for use of the software. The cloud model is a software-as-a-service (SaaS) version that is hosted by Microsoft in their Azure platform.
Deployment Modelsĭynamics 365 offers two deployment models, the cloud or online model and the on-premise model. Dynamics 365 has grown into a large business applications platform made up of many modules that can be optionally added to achieve a comprehensive platform to run your business. 2021 Microsoft Dynamics 365 pricing will help you understand the licensing and pricing for Microsoft Dynamics 365.
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