Difference between finance and operations on-premises and in the cloud

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On-premises architecture 

Finance and Operations can be deployed on-premises. This means that the application is deployed locally within the customer's data center, and the data center is managed by the customer. It is important to remember that because an on-premises deployment is locally deployed, system requirements, hardware sizing, and functionality of the application differ from cloud deployments.


When an on-premises deployment is selected, the application servers and the Microsoft SQL Server database are run in the customer's data center. Identical to a cloud deployment, LCS is used to manage the on-premises deployment. To build and manage an enterprise-class, high-scale application, and on-premises deployments, use Microsoft Azure Server Service standalone clusters. The Service Fabric standalone clusters can be installed on any machine that is running Windows Server. There are two types of clusters: one for sandboxes and one for production environments. Application Object Servers (AOS), Financial Report Designer (formally named Management Reporter), and SQL Server Reporting Services (SSRS) are roles that are deployed in both the production and sandbox clusters. 


When deciding which type of deployment your organization should use, you should consider the overall approach to the implementation and the management of the infrastructure. Additional considerations include organizational preferences to meet the regulatory and compliance needs of the business. With cloud deployment, the structure is completely managed by Microsoft. With an on-premises deployment, the customer takes on more responsibility and incurs additional costs. Examples of additional costs could include setting up your own infrastructure, configuring a high-availability disaster recovery solution, setting up sandbox environments, and managing the infrastructure. 


Keep in mind that there are differences in the features that are available for cloud and on-premise deployments. Microsoft offers a list of specific features that differ for each of the deployment types. For more information, see the Summary unit at the end of this module.





Cloud architecture


The finance and operations application cloud architecture contains all the elements that are common to all Microsoft cloud offerings, as described in Subscriptions, licenses, accounts, and tenants for Microsoft's cloud offerings. Beyond this, it also includes services that automate software deployment and provisioning, operational monitoring and reporting, and seamless application lifecycle management.





The architecture for cloud deployment includes several main components: 


• Subscription - A subscription to the Finance and Operations apps gives you access to an online cloud environment. 


• Licenses - Customers must purchase subscription licenses (SLs) for their organization or for their affiliates' employees and on-site agents, vendors, or contractors who directly or indirectly access Finance and Operations apps. Finance and Operations apps are licensed through Volume Licensing and the Cloud Solution Provider (CSP) program. See the Microsoft Dynamics 365 Licensing guide for more information. 


• Azure Active Directory (Azure AD) - Azure AD is the multi-tenant, cloud-based directory and identity management service from Microsoft that combines core directory services, application access management, and identity protection in a single solution. Finance and Operations use Azure AD as the store for identity. Access to Azure AD is provided as part of a subscription to the Finance and Operations apps. 


• Tenant - In Azure AD, a tenant represents an organization. This is a dedicated instance of the Azure AD service that an organization receives and owns when it creates a relationship with Microsoft (for example, by signing up for a Microsoft cloud service such as Azure, Intune, or Microsoft 365). Every Azure AD tenant is distinct and separate from other Azure AD tenants. 


• Microsoft 365 Admin Help Center: A subscription management portal that Microsoft 365 provides for administrators. It's used to provide management functions through Azure AD as well as subscriptions. As part of these management functions, it provides information about service health. 


• Lifecycle Services (LCS) - LCS is a collaboration portal that provides an environment and a set of regularly updated services that can help you manage the application lifecycle of your Finance and Operations implementations. 


• Azure DevOps - used primarily for code version control and to deploy a build environment. Azure DevOps is also used to track support incidents, such as work items in Azure DevOps that are submitted to Microsoft through cloud -powered support, and to integrate the Business Process Modeler (BPM) library hierarchy into your Azure DevOps project as a hierarchy of work items. Azure DevOps is also used during code upgrades. 

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