Features like Copilot, AI support and automatic updates always appear in the cloud first – sometimes exclusively there. Choosing the cloud isn’t just a technical decision; it’s a long-term strategic one.
“The cloud isn’t just a place where the system runs. It’s a completely different model for how you can work, innovate and grow,” says Oscar Nyrén, Technical Solutions Architect.
Security and predictability
The cloud is often the safer and more predictable choice. When operations, updates and infrastructure are already included, organizations don’t have to spend time keeping servers running. This simplifies cost planning and frees up resources for development instead of maintenance.
And security is far from theoretical. One company we encountered suffered a ransomware attack in the middle of their implementation. The entire infrastructure was locked down, and the project had to be rolled back several months. Afterwards, the conclusion was clear: the future was in the cloud, where protection, monitoring and recovery reach levels few in-house IT environments can match.
Data within the EU – a crucial signal
European organizations handling sensitive data sometimes hesitate to move to the cloud. But Microsoft’s EU Data Boundary initiative ensures that customer data, including backup and operational data, can remain entirely within Europe. It’s a clear signal that the cloud is not only powerful but also built for European conditions and regulatory requirements.
“For many customers, the EU Data Boundary is a game changer. It allows them to choose the cloud without compromising on laws and regulations,” says Oscar Nyrén.
When on-prem still makes sense
There are, of course, exceptions. Public authorities and companies bound by legal data storage requirements may still need on-prem solutions. In other cases, it’s about existing infrastructure investments or integrations so tightly connected to legacy systems that migration must happen gradually. In these cases, on-prem can be a temporary solution – but rarely a final destination.
So, what’s the verdict?
Microsoft Dynamics 365 on-prem still exists, but mostly as a softer entry point for organizations not yet ready to go all-in on the cloud. The real power of Finance & Operations – and the entire Microsoft Dynamics 365 platform – lies in the cloud. For most companies, the question isn’t if they’ll move, but when.