Dynamics 365 for Operations in the Cloud and On-Premise : The Best of Both Worlds

Major news in the enterprise Dynamics community was broken last week. Microsoft Dynamics 365 for Operations is nearly ready for a hybrid deployment, meaning enterprise-level firms will be able to experience the best of both worlds. The hybrid cloud deployment allows enterprise firms, who could not consider a cloud-only solution, to receive the multitude of benefits of Microsoft cloud technology while still maintaining the security and control they need in order to run their firm.

Some enterprise level firms, specifically manufacturers and retailers, rely heavily on smooth and consistent production in order to make their business profitable. As such, these companies tend to lean towards ERP and business solutions that are held and controlled locally. Additionally, some of these companies are forced into these types of solutions because regulations maintain that they capture and store a customer’s personal information locally. A cloud-only solution gives them the operating power they need to produce, but not the control or security they desire. That is no longer the case for Microsoft Dynamics 365 for Operations.

Dynamics 365 for Operations Hybrid Cloud Announcement

In a blog post on February 23rd, Sri Srinivasan announced and detailed the availability of a hybrid deployment for Dynamics 365 for Operations. Srinivasan is the General Manager for Microsoft Dynamics 365 for Operations in the Cloud and Enterprise Group.

At the Summit ’16 in Tampa, Florida, we announced the plans for a hybrid cloud deployment meant to accommodate these specific scenarios, so that organizations can combine the best of both worlds. Dynamics 365 for Operations plans to enable organizations to run their business processes from application servers at the edges, meaning that transactions are supported by local application services and business data is stored locally. Each such facility running at the edge is called “My Workplace”. The central cloud node provides a single view of the business across distributed ”My Workplace” instances while utilizing the power of the Microsoft cloud for embedded intelligence in business processes.

The Microsoft cloud connection ensures data aggregation, financial reporting, intelligence, and more. The cloud instance also provides the local installation with data failover in the Microsoft cloud, automated deployment and continuous updates, and elastic compute capacity to infuse “intelligence” into the business process when needed. This hybrid cloud deployment model scales out through federation of the on-premises nodes (My Workplaces), federated in the Microsoft cloud for a single, global enterprise view, which is a first for business applications.  By Summer 2017, we will support a single “My Workplace”, followed by federation of “My Workplace” instances in releases beyond. We are excited to offer this deployment option, “cloud and edge”, a true differentiated option that combines the power of cloud and on-premises in a unique way to offer scale, continuity, and intelligence.

Sri Srinivasan, Microsoft General Manager for Dynamics 365 for Operations

This is fantastic news for enterprise firms looking to harness the power of the Microsoft Cloud while still being able to run certain processes locally. Srinivasan went on to divulge that there will be an ON and OFF switch of some sorts that will allow companies to control cloud synchronization – keeping them in control of their business data.

Deployment Options

With this new deployment method, enterprise firms will have a real decision to make when considering Microsoft Dynamics 365 for Operations. Do they want to take advantage of all the Microsoft Cloud has to offer? Or do they prefer to have a server nearby storing key information and running select processes? Even further, firms may want flexibility to change their ERP environment after the initial purchase without having to re-deploy a brand new ERP solution.

Here is what the Dynamics 365 for Operation team is working on at Microsoft:

• New and existing customers will have paths forward to license both local business data and cloud and edge deployments. Existing investments will continue to be accounted for in our licensing.
• Customers can license local business data deployments via a Dynamics 365 for Operations license with Software Assurance/Enhancement Plan or a subscription model.
• Customers with active Microsoft Dynamics Enhancement Plans or Software Assurance, may upgrade to local business data as they remain entitled to access new versions and updates.
• Transitions to Dynamics 365 cloud subscriptions are available to customers with active Microsoft Dynamics Enhancement Plans or Software Assurance.
• Cloud and edge software and services will be licensed under the existing Dynamics 365 cloud subscription licensing model.

Dynamics 365 for Operations Deployment Options

Enterprise firms can select from three deployment options. The below photo examines the different scenarios and details of each deployment.

AXIO Enterprise Solutions for Dynamics 365

SBS Group’s AXIO Enterprise Solutions are both available on Microsoft AppSource for enterprise firms interested in optimizing and strengthening their Dynamics 365 for Operations deployment and solution. AXIO Core Financials spans all the important business processes in your firm (accounts receivable/payable, general ledger, fixed assets, banking, etc.) and is built directly on Dynamics 365 for Operations. AXIO for Professional Services gives businesses the same features as AXIO Core Financials plus several additional features needed specifically by professional services firms such as project and resource management, project accounting, government contracting and much more.

Both solutions are designed for companies who have multi-entity, multi-currency, multi-taxation and multi-language requirements. With direct integration with Dynamics 365 for Operations, AXIO Enterprise Solutions provide global scalability, enterprise-class extensibility, built-in intelligence, and compliance with all GAAP, IFRS, Sarbanes-Oxley, and DCAA requirements.