In addition to a cloud-based and a hybrid version, Microsoft Dynamics 365 for Operations is now also available for purely on-premise operation in a company's own data center – on the company premises or with a hosting service provider like Sycor.
Functionally the scope of Microsoft Dynamics 365 for Operations is the same in the on-premise and in the cloud version. The benefit from our perspective lies mainly in the additional choice for customers, offered by Microsoft in response to clear market demand:
Even when Dynamics 365 for Operations is operated on-premise, it can be linked to other products such as Microsoft Dynamics CRM Online and other cloud apps in the Dynamics 365 portfolio. Conversion from all old versions to Dynamics 365 is offered for all existing Microsoft Dynamics AX customers. Here customers can switch to the on-premise version – but also move to the cloud now or later on if desired. Interfaces for data storage in the cloud are not necessarily required for this version, but are possible in hybrid scenarios. Microsoft offers optional cloud-based add-ons for big data and business intelligence applications, among other things for Power BI and Azure Machine Learning. This makes it possible to switch from the company's own environment to the cloud and the other way around.
Info: The Dynamics 365 family is being renamed on July 1: Microsoft Dynamics 365 for Finance and Operations (Enterprise Edition) is the "old" Microsoft Dynamics AX, Microsoft Dynamics 365 for Finance and Operations (Business Edition) is the "old" Navision.