Microsoft Dynamics 365 for Operations: available for in-house use starting this summer

Starting in summer 2017, medium-sized companies will be able to operate the "Microsoft Dynamics 365 for Operations" ERP system, which is currently cloud-based, offline in their own data centers. With this move, Microsoft is catering to the different needs of medium-sized and large businesses.

In the fall of 2016, Microsoft announced the introduction of "Microsoft Dynamics 365 for Operations" as the successor to the ERP system Microsoft Dynamics AX. Initially it was only available as a cloud or hybrid solution. At the end of this February Microsoft went as step further: starting in the summer of 2017, companies will also be able to operate Dynamics 365 for Operations "on-premise" in their own data centers. The previously mandatory online synchronization with the cloud will then be able to be easily switched off. However, in this case cloud-based additional extensions such as "Microsoft Power BI", "Microsoft Machine Learning" for big data scenarios, data analysis in real time, and internet of things (IoT) support will then not be available.

Many SMEs prefer using their own data centers

Although installation and operating costs are usually cheaper in the cloud, many medium-sized and large companies prefer to run software on their own premises. Uwe Bergmann, CEO of COSMO CONSULT AG, has recognized this and made the following observation: "In many industries there are legal requirements that are not compatible with the concept of the cloud right now. And those who have recently invested in their own infrastructure, of course, are first and foremost interested in making use of existing capacities." There are also scenarios where data has to be processed locally or in locations with a slow Internet connection. "In these cases, companies can use Dynamics 365 for Operations locally starting this summer - and still benefit from the advantages of the latest ERP technology," explains Uwe Bergmann. An important advantage is that the decision for the exclusive operation in a company's own data center is not irreversible. SMEs can thus start using the software in house and later change to the cloud or hybrid operation. In hybrid models business critical data or key processes can be kept in the company and still be supplemented with additional cloud services. Hybrid solutions are often a gateway to the cloud.

Short implementation phase pays off

Dynamics 365 for Operations is a powerful, highly scalable ERP system that brings together central business areas such as distribution, marketing, sales and customer service into common processes. "The uniform structures ensure transparency, support innovation and promote new trends such as agile manufacturing. Especially in the cloud, Dynamics 365 for Operations distinguishes itself with short implementation times, often less than 90 days. This lets companies benefit from process improvements very quickly," said COSMO CONSULT CEO Bergmann.