What differentiates Microsoft Dynamics CRM Online and On-premises versions?

Microsoft Dynamics CRM solutions provide a proper framework for your business organizations and functionalities. In general, there are two versions of Microsoft CRM solutions- CRM online and CRM on-premise version. CRM is hosted in Microsoft’s cloud and is a completely feasible solution to use.

CRM on-premise version allows you to implement and set up the servers and applications for yourself. CRM Online is a SaaS model. CRM on-premise version is a traditional model where CRM is hosted by your company or by another hosting partner or vendor.

CRM Online VS CRM On-Premise Version
The difference between CRM versions are as follows:
1.      Infrastructure
·         Microsoft Dynamics CRM online version provides physical and environmental security within the data centers. It has skilled staff that provides local technical support to all the data centers. It also provides with self-healing process through an automation workflow for a quick resolution which needs no human intervention.
·       The operational centers provide 24/7 monitoring assistance to catch the issues in which self-healing could not resolve and then it is escalated to a service engineer to resolve the issue. It also provides a sophisticated recovery process for data. It integrates other Microsoft applications like Azure, Office365, Oracle and many more.
·       MS Dynamics CRM on-premise version, on the contrary, has the ready to implement and monitor security, backups, copies of data and certifications within an individual company or by a hosted third party.
2.      Data integration options
Microsoft Dynamics CRM online version and the on-premise version has data integration options quite similar. The integration performance is base on the data load. The large data integrations are faster on CRM on-premises version if the CRM server is close as the latency is very low.
3.      Integrations with other Microsoft platforms
The integration with other Microsoft Platforms such as SharePoint, Exchange, Lync, and Yammer work completed by both the CRM versions.

If the current system uses Office 365 for Exchange or SharePoint, then the CRM online version allows to make user management standard and offer extended server-side integration with SharePoint, Exchange Online and PowerBI.
4.      Mobility of the versions
The mobility works the same for both the CRM versions. The use of CRM versions on phones, Tablets and Outlook (including offline) work in a similar way for CRM online and ON-premise versions.
5.      Extensibility
Customizations made in a supported way for CRM on-premise can be transferred to CRM online and vice-versa. The plugins, workflows and any custom extension can use in either Online or On-premises implementation.
The code which is supported by the versions can work on both the versions.

Difference between the capabilities of the CRM versions
The CRM versions also on the based on their capabilities to work. They differ as follows:
a.      SharePoint integration
The SharePoint integration in CRM online is by the server side with SharePoint online. While on the on-premise version it is by the client side.
b.      Storage limit
The storage limit for the CRM online version is limited to the amount of storage purchased. For the CRM on-premise version it is limited by the storage space available on your server.
c.       Release cycle
Two releases per year. The spring release functionality is exclusive to CRM Online, so new functionality is available online first.
The fall released to both CRM versions, and it also includes the functionality released in the spring release.
d.      Migration of the versions
CRM online version customers can migrate to CRM on-premise version anytime.
The on-premise version can also move to the online version and the customizations made to it can be imported easily.


So these are the differences between both the versions of Microsoft CRM Solution. Customers can deploy and use the CRM versions according to the need and requirements of their businesses.
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