For business management solutions email us or call 020 3004 4600

Comparing and contrasting Dynamics 365 Finance & Operations On-Premise and Dynamics 365 Human Resources in the Cloud

As we continue to see the evolution of technology on a rapid scale, businesses will find that there are a number of options on the market when it comes to software. One of the areas that has experienced the most growth has been the human resources element. 

You will find that the Dynamics 365 stack provided by Microsoft has two different HR related options for your business: the HR module in Dynamics 365 F&O On-Premise and Dynamics 365 Human Resources in the Cloud. 

In our latest blog article, we dive deeper by comparing the two options in detail providing you with a comprehensive understanding of both the pros and cons of each. 


You will find that the biggest difference between the two solutions is when it comes to deployment. Dynamics 365 F&O On-Prem is installed and hosted locally on servers both owned and maintained by the business. Whereas Dynamics 365 Human Resources in the Cloud is a SaaS solution which means that it is both hosted and managed by Microsoft in a cloud-based environment. 

Security & Data 

It goes without saying but keeping data secure and safe is vital for any HR system you implement. When it comes to Dynamics 365 Human Resources in the Cloud, Microsoft takes care of this all by ensuring that data is secure at all times through the use of encryption & backups. Although, you may also find that certain businesses have specific requirements meaning that they need to have an on-premise solution to have greater control over both data and security for compliance reasons. 


You will notice that the integrations can differ on both on-premise and cloud-based solutions. Dynamics 365 F&O on-premise gives you some flexibility in being able to integrate with other on-premise and legacy systems. However, on the other hand, Dynamics 365 Human Resources in the Cloud provides more flexibility in the fact that it can integrate easily with other Dynamics 365 applications and other Microsoft products such as Teams and Microsoft 365 applications. 

Accessibility and scalability 

You will find that cloud-based solutions provide you with better accessibility as well as better scalability. Through the use of Dynamics 365 Human Resources in the Cloud, users can log on to the system no matter where they are as long as they have the internet, making it perfect for those businesses that have a hybrid approach to working. Better still, having a cloud-based solution in place makes it much easier to scale up as your business grows as businesses are able to change their subscription and resources based on their specific requirements. 

Upgrades & maintenance 

When it comes to Dynamics 365 F&O on-premise, the maintenance and updates are done completely by the business in question. They are responsible for ensuring that the system is up to date and up to scratch as well as ensuring that upgrades are completed as and when required. Whereas on the other hand, Microsoft are in full control over the system maintenance as well as upgrades relating to Dynamics 365 Human Resources in the Cloud which means that you don’t have to waste any money on costly IT infrastructures. 

So, which one is best? 

It is pretty clear from the above that Dynamics 365 Human Resources in the Cloud is a much more rounded option than the HR product built in Dynamics 365 F&O on-premise as it gives you a much better accessibility, better scalability and better integration with other Microsoft products that we know and love.  

Next Steps? 

If you are a business that has read the above comparison and are keen to get Dynamics 365 Human Resources implemented in your business then give our team of Dynamics 365 specialists a call today to go through our specific business needs. 

Are you looking to get more comparison articles like the above delivered to you directly? This can be done if you join our marketing list now