Hosting mode: Cloud or On-Premise, which should you choose?
- Elise Dejour
- 4 days ago
- 3 min read
When considering adopting a new ERP such as Microsoft Dynamics 365 Business Central or any other management tool, a crucial question arises from the outset: should you opt for cloud or on-premises hosting?
This choice is not insignificant: it affects the security, flexibility, compliance, and costs of your information system. In this article, we take a look at the different hosting options, their advantages and disadvantages, and Microsoft's specific approach with Azure and Business Central.
Understanding the main types of accommodation
1. On-Premise Hosting (on-site server)
Your software is installed directly on a physical server located on your premises. This gives you complete control over security, configuration, and access. This hosting method requires an in-house IT team or a service provider to manage maintenance.
Advantages:
✅ Total control over data
✅ Works even without the internet
Disadvantages:
❌ High costs (hardware, maintenance, electricity)
❌ Less flexible for rapid development
2. Cloud hosting (external hosting)
The Cloud comes in several models:
IaaS (Infrastructure as a Service): you rent infrastructure (servers, storage, network) in a data center, but you manage the applications yourself.
PaaS (Platform as a Service): you use a platform managed by a provider (e.g., Azure), which takes care of the infrastructure and updates, while you focus on your applications.
SaaS (Software as a Service): you directly consume ready-to-use software, accessible online, without having to manage the infrastructure (e.g., Business Central in SaaS mode).
Advantages:
✅ Flexibility and scalability (add users in a few clicks)
✅ Automatic updates and security managed by the provider
✅ Cost based on consumption (OPEX rather than CAPEX)
Disadvantages:
❌ Dependence on internet connection
❌ Dependence on the provider (contracts, data location)
What is a server and why is it important?
A server is a powerful machine designed to store, secure, and share your data or software.
Having your own server (on-premises) means you have complete control over access and security, but it requires investment in hardware, electricity, redundancy, and maintenance.
Choosing a cloud server (Azure or another provider) allows you to outsource this management, with better resilience and flexible access from anywhere.
Accommodation and specific features in Switzerland
In Switzerland, the issue of hosting is particularly sensitive, particularly for reasons of data sovereignty and regulatory compliance (nLPD, GDPR). There are two main options:
Sovereign cloud: some companies choose to host their data in Switzerland via local providers to ensure that the data never leaves the country.
International cloud (Azure, AWS, etc.): Microsoft Azure now has data centers in Switzerland, enabling compliance, performance, and innovation to be reconciled.
The Microsoft ecosystem: Azure and Business Central
Microsoft Azure is Microsoft's cloud platform. It guarantees security, compliance, and availability, while adapting to the needs of both SMEs and large corporations. Dynamics 365 Business Central ERP, like all other Microsoft solutions, can be hosted:
In SaaS mode (hosted on Azure), it offers all features with automatic updates, high availability, and interconnection with the Microsoft ecosystem (Power BI, Teams, Copilot AI, etc.).
In on-premises mode, it can be installed on your internal servers or hosted in a private cloud in Switzerland, if your sovereignty or security requirements demand it. This choice must be made at the outset as it impacts your architecture, investments, and business processes.
Why choose an integrator like Almakom?
The choice between Cloud and On-Premise depends not only on technology, but also on your industry, size, and regulatory constraints. At Almakom, we:
Analyze your business needs and legal constraints (nLPD, GDPR, Swiss specifics). Help you choose between Business Central in SaaS or On-Premise.
Set up a reliable, secure, and scalable infrastructure.
Support you in change management and team training.
With our dual role as an ERP integrator and business application publisher, we guarantee a solution that is tailored, sustainable, and connected to your reality.
Cloud or On-Premise ?
There is no single answer:
Cloud SaaS is suitable for SMEs that want a flexible, scalable solution connected to the Microsoft ecosystem.
On-Premise remains relevant for organizations with strong constraints in terms of security, customization, or data sovereignty.
The important thing is to make this decision from the outset, with a trusted partner who can give you objective advice.
Comments