Microsoft Dynamics 365 On-Premises
Microsoft offers additional deployment strategies for Microsoft Dynamics 365 which include cloud, cloud and edge (hybrid), or local business data (on-premises). You have the flexibility to migrate from one deployment to another.
With the Dynamics 365 On-premise deployment you will be able to run your business processes and transactions in your local data centers and store business data in your own or your partner’s data center, without the replication and connection of business data into the Microsoft cloud. You have the option to turn ON or OFF the cloud synchronization of your business data to Microsoft cloud. However, if you chose to not replicate your business data into the Microsoft cloud, you will not be able to leverage the benefits of Microsoft cloud such as Machine Learning, Telemetry, embedded BI and more. The Dynamics 365 on-premise deployment option is called as Local Business Data option.
In the Local Business Data deployment option, the application servers and the SQL servers will run on your own data center. However, for managing your deployment, implementation and monitoring.

Primarily, Dynamics 365 On-premises deployment option gives complete control of the management and maintenance of your business data in-house and is for those who would like to:
- Run and maintain your own server
- Handle all upgrades and updates internally
- Avoid having any data store limit
- Subscribe or purchase different types of licenses based on Microsoft Volume Licensing