How to Prepare for an On-premise Deployment?

How to Prepare for an On-premise Deployment?

n today’s world of Enterprise IT, businesses need to consider many factors when deploying infrastructure solutions. While some navigate through complex cloud solutions, others rely on the tried-and-tested solution of on-premise deployment.

What is On-premise Deployment?

On-premise deployment refers to the method of deploying applications and software right in the user’s in-house servers and IT infrastructure.

On-premise deployment requires you to purchase a license agreement of the software or a copy of the software to use it. Since the data stored resides within the organizational boundaries, the user will have greater control and protection than a cloud computing solution.

Microsoft Dynamics 365 Finance + Operations (on-premises) supports running business processes in organizational data centers.

Application servers and Microsoft SQL server database help deploy on-premise solutions in customer’s database. 

Organizations use Microsoft’s Dynamics Lifecycle Services (LCS) to manage their on-premises deployments.

LCS is an application management portal that helps organizations in the application life-cycle management in both on-premise and cloud deployments.

How Microsoft Deploys On-Premise Solutions

Microsoft’s on-premise deployment option uses something known as Azure Server Service Fabric standalone clusters to deploy their on-premise solutions.

The service fabric works as a middleware platform to deploy on-premise enterprise solutions. It can be deployed on any computer that is running a Windows server.

Data Storage

The on-premise deployment solution stores customer information on the organization’s infrastructure.

According to Microsoft’s Trust Center, customer data is divided into two types. The secondary customer data is stored in Microsoft’s Azure data centers located in the United States.

The primary customer data, also known as core customer data, is stored on-premise.

The following table shows what secondary data is stored with Microsoft.

  • Microsoft Dynamics Lifecycle Services – Stores application configuration data, code, metadata, and assets that comprise the business process and application models. Also, anonymous user activity logs during the onboarding process.
  • Microsoft Office sign up portal – Stores customer information that is obtained during the onboarding process.
  • Microsoft Azure Active Directory – Authentication information during sign-ups and logins.

How to Prepare for an On-premise Deployment?

Microsoft’s Dynamics 365 Finance + Operations (on-premises) supports running business processes in an organization’s on-premises data centers.

Application servers and Microsoft SQL server database help run on-premise solutions in customer’s database. 

How LCS is used in On-premise Deployments

Microsoft Dynamics Lifecycle Services (LCS) is an intermediate platform that facilitates tools and applications to deploy on-premise solutions.

LCS helps in the following tasks:

  • Deploy on-premise solutions
  • Service your on-premise environment
  • Search for product issue and features
  • Obtain customer support

System Requirement for On-premise Deployment

This section lists the software requirements for the current version of Microsoft Dynamics 365 Finance + Operations (on-premises) deployments.

Network Requirements: Work on networks that use Internet Protocol Version 4 (IPv4) or Internet Protocol Version 6 (IPv6).

LAN Environments: Remote Desktop might be required for servicing operations on virtual machines (VMs).

Software Requirements for Client Computers

You can use Finance+Operations by using the following browsers:

Hardware Sizing Requirements for On-premise Environment

The following factors affect the Hardware sizing. The more detailed information you gather about your on-premise deployment project the better you can predict the hardware sizing.

1) Transactions: Typically, the transactions have certain peaks through the week/month. Your hardware should be able to handle the highest peak.

2) Number of Concurrent Users: This is the second most important factor that affects sizing. If you don’t have an accurate number, assume one for the time being. Then revisit the sizing requirement based on the actual requirement you receive.

3) Data Composition: This depends on the individual setup requirements. How many legal entities, amount of time spent, how complex your current on-premise infrastructure is.

4) Extensions: Customization is the norm in an on-premise deployment project. Since organizations have their own rules for deploying solutions- depending on the complexity of your organization, the hardware size may vary. It is advised to to ensure that you opt for the right customizations- customizations that follow the best practices for performance and scalability.  

5) Reporting and Analytics: These factors include running heavy queries across various databases in the on-premise system. Understanding the frequency of your reporting can help you determine the size of the hardware. 

Comparison of Cloud and On-premises Features

There are several fundamental differences between on-premise and cloud deployment. The feature you choose depends on your requirement.


On-premise: Resources are deployed in-house and within the enterprise infrastructure boundary.

Cloud: Resources are hosted on the premises of the service provider. But customers can use the resources anytime.


On-premise: The hosting enterprise is responsible for hardware, space, and power consumption.

Cloud: Enterprise only pays for the resources used and none of the maintenance costs.


On-premise: Enterprise maintains all the control over data. Industries with extra-privacy concerns opt for on-premise deployment.

Cloud: Here the data and encryption key resides with the third-party vendor. So if there is any downtime, you may not be able to access the information.


On-premise: Companies with extra sensitive information opt for an on-premise environment. Despite its cost, it provides better control and security over the information. 

Cloud: The security level is the primary concern in cloud computing. Although, the service provider assures good security checks, there have been instances of cloud and data breaches. 

Wrapping Up!

Regardless of what solution you choose, both on-premise and cloud infrastructure give you the ability to scale your IT infrastructure. Microsoft’s on-premise deployment gives you greater control over data and promises better security and scaling options.

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