Microsoft Dynamics 365

Is Microsoft Dynamics 365 Cloud-Based?

Jessica Sheridan, Marketing Manager

January 7th, 2021

2 min read

A common question regarding Microsoft Dynamics 365 is whether or not it is cloud-based. In short, the answer is yes. However, Microsoft Dynamics 365 does offer a host of deployment options; on-premises, cloud or hybrid:


Software licenses are purchased and the database is stored on your server. This keeps all business data in-house, providing you with full control of how and where any information is stored, as well as being solely responsible for the upkeep and maintenance of the hardware.


No hardware is required, and the solution can be deployed remotely. Data is stored in the cloud and protected by Microsoft’s secure servers. A cloud solution is much more flexible in comparison to an on-premise deployment, as users can be increased/decreased easily, as well as the ability to integrate more applications at any time


A business purchases the on-premise software and pays a third party to host it.

Although on-premise and hybrid options are available, Microsoft has adopted a ‘cloud-first’ approach to Dynamics 365 implementations and continues to lead with this model. Cloud CRM Solutions are increasingly popular given the wide range of benefits, however, there are various industries that will require on-premise software. Take a look at this blog post to find out more about the cloud based Dynamics 365:

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