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Difference Between Microsoft Dynamics 365 Online and On-Premises

In recent years, Microsoft has made a strategic decision to release new features in Dynamics 365 in the cloud first. This is fully in line with Microsoft’s “cloud-first” strategy. Some new features are even released exclusively for the cloud version (“cloud-only”).

Currently, v9.0.8 is the latest on-premises version of Dynamics 365. (See https://support.microsoft.com/en-us/help/3142345/microsoft-dynamics-365-onpremise-cumulative-updates) The on-premises version receives a new release every two years, while Dynamics 365 Online receives minor updates weekly. In addition, there are two major releases of Dynamics 365 Online each year. In other words, the The frequency of releases varies significantly.

New features are now always released first for Dynamics 365 Online, which means the on-premises version is always lagging behind. Cloud customers are therefore the first to benefit from the latest features and improvements.

Overview of the most important Dynamics 365 Online features that are not currently available on-premises

  • Web portal capabilities
    For Dynamics 365 customers (with a minimum of 10 full licenses), a Web Portals bundle is available for content management, knowledge management, case management, opportunity management, member management, profile management, and more. You can then deploy a web platform within your Dynamics 365 Online environment for customers, partners, employees, or communities.
  • Integration with Microsoft Flow, Power BI, and Microsoft Azure
    Thanks to the Common Data Model and the Common Data Service, your Dynamics 365 environment connects seamlessly with Microsoft Flow, PowerApps, Power BI, and Microsoft Azure. Furthermore, when it comes to installing Microsoft Flow on Dynamics 365 Online, there is no need to install the data gateway, making the process less cumbersome.
  • PowerApps
    PowerApps is the technology that allows your employees to create a low-code / no-code You can develop a business app to manage specific data in your Dynamics 365. A PowerApp can be made available both via the web and through a mobile app.
    Learn more about PowerApps
  • Advanced Artificial Intelligence (AI) Capabilities
    Specific AI apps are available for Dynamics 365 Online customers: Sales Insights, Customer Insights, and Customer Service Insights.
    Learn more about the AI apps in Dynamics 365
  • Power Platform Admin Center (Analytics)
    With this analytics tool, you can view statistics on the actual use of your business apps, including user activity.
  • Integration with Excel Online, Word Online, and OneDrive for Business
    Thanks to the integration of Dynamics 365 with Office 365, there is single sign-on access. This means that if you are logged in to one application, you are automatically recognized by the other application. That way, you don't have to log in again each time.
  • Integration with Microsoft Teams
    With Microsoft Teams, you can achieve the modern workplace for your employees. From Teams, you can click through to data in Dynamics 365 Online by “pinning” records to a Teams channel.
  • Dynamics 365 for Marketing
    Microsoft's marketing automation solution is available only in the cloud. D365 for Marketing integrates seamlessly with D365 for Sales and includes built-in business intelligence.
    Learn more about D365 for Marketing
  • Project Service Automation
    With the D365 Project Service Automation app, you can you online your Manage projects successfully from start to finish. 
  • Gamification
    With the Dynamics 365 Gamification tool, you can set up work-related competitions in which your salespeople compete to achieve predefined KPIs. This allows employees to compete with each other in a fun way, resulting in improved performance and greater engagement.
    Watch a video about the gamification tool
  • Microsoft Forms Pro
    This is a tool for creating and sending surveys and web forms from Dynamics 365 Online. It allows you not only to collect customer feedback, but also to analyze all the feedback collected, identify data correlations, and detect sentiment.
  • Enterprise-grade security
    Microsoft is investing massive amounts of capital in security. Dynamics 365 Online is secure and reliable, with robust disaster recovery scenarios that on-premises customers generally cannot match.
  • Exchange Online
    Integrating Exchange Online with D365 apps is much easier in the cloud than on-premises. With the cloud, you don't have to worry about infrastructure, firewalls, or authentication.
  • Mobile Offline Synchronization
    If you don't have an internet connection, you can still work seamlessly in offline mode on your mobile device—as long as offline synchronization is enabled.

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