Microsoft Dynamics: in the Cloud or On-premise?
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1 Microsoft Dynamics: in the Cloud or On-premise?
2 The Magnificent Seven: Helping you make the right choice Introduction There are many choices to make if you re thinking about changing the delivery method for your Microsoft Dynamics AX; move to the Cloud or stay On-premise? The fundamental difference between these options is simple: Cloud ERP is provided as a service, with your software, databases and associated data delivered through an internet connection from the Cloud. On-premise ERP solutions are installed on your company systems and, most often, managed by your IT department. So how do you choose between Cloud and On-premise? What is the best fit for your organisation? Summary This document aims to help you by explaining the most important aspects of making the decision between Cloud and On-premise. SaaSplaza has identified seven critical factors for businesses to consider when it comes to making the choice. These are: 1. Uptime 2. Cost 3. Scalability / Flexibility 4. Accessibility 5. Updates / Upgrades 6. Time to productivity 7. Security Please note; this list is not in any order of priority! It s important to say here that each business has unique requirements, so the actual drivers for choosing Cloud will be a combination of all, or some, of these different factors. We discuss each of the seven more broadly below. 1. UPTIME ERP is a mission critical business application that should be Always On. Does your IT Team give you a guaranteed minimum level of system availability for your on-premise applications, across all of your offices? SaaSplaza has an SLA that guarantees a minimum of 99.9% uptime to the application level. When we say at the application level, what do we mean? To us, uptime is critical, because it means the availability of the applications your people need to be productive. It doesn t just mean that the servers the infrastructure that your applications sit on are working correctly. It means your people can do their jobs on the business systems you provide for them. Server level uptime does not guarantee that your system is available, only that the server is functioning correctly. That is a significant difference in service level and SaaSplaza financially guarantee this uptime promise. 2. COST On-premise implementations often require large upfront capital expenditure to purchase the software licenses and to upgrade system hardware. In many cases, your IT team will need significant time and resources to deploy the system, and to keep it up and running. There may also be increased cost in hiring and training for your IT team so they can manage the current system and cope with future changes.
3 The costs of Cloud AX with SaaSplaza are typically much lower because: The Cloud has distinct economies of scale, which create cost advantages at optimum quality levels These cost advantages are passed directly to customers, ensuring low, predictable pricing Cloud systems have longer life spans compared to on-premise Cloud systems are more easily maintained, updated and integrated with other systems; ensuring productivity increases - not decreases - as systems mature SaaSplaza offers predictable, regular monthly fees that comprise: Deployment, management and maintenance to ensure your system is operating at optimal levels Maintaining the confidentiality, integrity and availability of your data A faster time to productivity for your system and customisations that run smoothly By working with us, you free existing IT resources to apply their time to innovation and to improve how the business operates not on maintenance! Cloud, after any initial project or implementation costs, can be treated as a predictable operational expense. Cloud implementations have a longer lifespan than on-premise because hardware does not become obsolete or incapable of operating the software. Software is also easier to update and manage in the Cloud. Licensing costs are also increasingly moving to a subscription licensing model where you can control your actual user numbers quickly and pay for them on a monthly basis, rather than a large upfront licensing purchase. Of course, for smaller businesses who do not have full-time IT resources the Cloud is a no brainer. In most cases, Cloud will be cheaper overall - and Cloud offers you greater ability to drive better results your company. 3. SCALABILITY AND FLEXIBILITY With an On-premise installation, scaling users often means investing in additional hardware. Cloud is far more flexible and capable of scaling up - and down - to your requirements. For example, if you have increased seasonal demands, reporting requirements, you acquire companies, open or amalgamate branch offices, change your business structure or need part-time workers. On Public Cloud infrastructure, such as Microsoft Azure, you also need a Cloud Services Provider such as SaaSplaza, who can manage your consumption costs by scaling your resources down when their use is not required. Also, when you need more performance, for example in your accounting department at month end, Cloud can ensure additional resources to handle the increased demand are available for as long as it is needed. 4. ACCESSIBILITY By default, Cloud means data anywhere, anytime, so if you want to provide better access, flexibility, productivity and mobility for your staff, across all devices, then Cloud is for you. 5. UPDATES AND UPGRADES Microsoft Dynamics AX is regularly updated or upgraded. If you re on recent versions of Dynamics Cloud solutions, then product rollups and new releases can be seamlessly installed without interruption. So you re always on the latest version of your ERP system if that s what your organisation requires.
4 6. TIME TO PRODUCTIVITY Cloud ERP, depending on the level and complexity of customisations, can be on and working for your people in a shorter time than most on-premise ERP installations, particularly for branch offices or geographically spread organisations. 7. SECURITY ii) Cloud security through redundancy Another reason security for Cloud solutions beats on-premise solutions is simply that a significant benefit of Cloud platforms is data recovery and redundancy. Put your data in the Cloud, and it is backed up and stored securely, often in several places. However, if something happens to the premise in on-premise, your data may no longer be secure or available at all. For many organisations considering a move to the Cloud, security is a prime concern. We talk a lot about security, and rightly so. Confidentiality. Privacy. Data integrity and availability. Trust. Security is a pretty big word. For all the hype about whether or not the Cloud is secure, the fact is that the Cloud is at least as secure as most on-premise solutions and in most cases, more secure. We look at Security on four fronts: i) Cloud security through compliance processes Why is the Cloud a safe choice? Part of it is due to regulatory systems set up to ensure safety and security, such as the SSAE-16 Type II and ISAE-3402 Type II certifications that SaaSplaza hold. Every year, SaaSplaza is independently audited by PWC for these certifications, and data security is a primary criterion for these audits. SaaSplaza completes both certifications because SSAE16 is an attestation standard while ISAE 3402 is an assurance standard. While the standards are technically different, they both require SaaSplaza to provide full disclosure of systems and processes, plus comprehensive written documentation. iii) Cloud security through SaaSplaza At SaaSplaza, we take more measures than any other Dynamics Cloud AX provider to protect customer data and privacy. We know that security is more than a feature or benefit. At SaaSplaza, security is a mindset, and it starts with our people. We carefully review each employee before hiring. We also have a full-time Security Officer, who chairs a global Security Council. Our Security Council reviews policies, software, infrastructure and resources regularly, to ensure best practise security compliance and our continued certifications. iv) ISAE/SSAE auditing is our choice, but security is a job for ALL These audits are done annually, proactively, and at SaaSplaza s expense. Why would a company submit itself to such rigorous investigation? The answer is easy: for our customers. We know that a prime concern many have regarding the Cloud is security. With these audits, we are taking the necessary step to prove that SaaSplaza and the services we provide treat security as an essential issue.
5 However, security is not 100% in our hands - it s in your hands, too. For example, keeping antivirus and malware definitions up-to-date, making proper staffing choices, ensuring passwords are often changed and maintaining current and correct permissions is entirely up to you. We can ensure the security and availability of the Cloud, but effective internal security processes are essential to ensure the confidentiality, integrity and availability of your data. These processes are your responsibility. When it comes to security, we re always happy to provide recommendations and assistance. We can help you form policies and procedures that work best for your business, and we can make your own security an easier undertaking. Ready for Cloud AX? Learn more and request more information at saasplaza.com/cloud-ax-for-business We re always available for a no obligation confidential discussion to understand your AX requirements, to provide you with detailed information on moving to Cloud AX. Contact Us today! About SaaSplaza SaaSplaza delivers services globally on Microsoft Azure and from our private cloud platforms in Europe, the USA & Canada, and the Asia-Pacific region. We support our partners and their customers from offices in Singapore, Sydney, Shanghai, Amsterdam, Munich and San Diego, with a global 24/7 Follow The Sun support model. Our extensive Microsoft Dynamics engineering and support capability means we can deliver the Cloud solutions that exactly meet your needs. We also continually invest in innovation, to improve service levels and to optimise the delivery of Dynamics applications. SaaSplaza also provides several other Microsoft Cloud managed services for business. These include Microsoft Azure and Office 365 Subscription Services, and Microsoft Dynamics Subscription Licensing, as part of the Microsoft Cloud Systems Provider (CSP) program. SaaSplaza - World Leading Cloud Services for Microsoft Dynamics since Dynamics Cloud solutions are the only thing we do. Because of this focus SaaSplaza is the world s leading Cloud Dynamics provider. Today we work with more 200 Dynamics partners around the globe, powering more than 1500 Microsoft Dynamics applications worldwide. Our commitment to Dynamics earned membership to the Microsoft Dynamics Inner Circle in 2014 and 2015, putting us amongst the top 1% of the most successful Microsoft Dynamics partners globally. Contact us for more information EMEA: +31 (0) AMER: APAC:
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