Implementing Microsoft Dynamics GP is one of the most beneficial investments a company can make. By integrating financial management with workflow automation, inventory, and analytics, Dynamics GP can dramatically enhance business performance. Over the years, more companies have become aware of this and are now planning to purchase the enterprise resource planning (ERP) software for themselves.

But before you even begin installing Dynamics GP, you have to consider whether you want it on-premises or on the cloud. To help you decide, we’ve highlighted the pros and cons of each deployment model.


With an on-premises platform, Dynamics GP is located on your servers, which means you are solely responsible for data security, backups, and disaster recovery procedures. This is optimal for businesses in highly regulated industries since they can control how sensitive data is managed and secured. It also helps business owners feel more comfortable knowing that their data is physically close to their business.

Besides security, on-premises solutions are not subject to fluctuations in performance because they are not as reliant on high-speed internet connections as they are on hosted ones.

The downside is that on-premises deployments have much larger upfront costs. Not only do you have to purchase software licenses for each user, but you also have to set up the necessary hardware and operating systems for the platform. Plus there are extra expenses like integration services and ongoing maintenance, which can eat a significant portion of your budget.


Hosted Dynamics GP, on the other hand, fixes many on-premises shortcomings. In fact, a study suggests that those who deploy cloud-based ERP software save at least 20 percent on upfront investments. This is largely due to the fact that the host provider manages everything — including computing resources, data storage, software updates, and round-the-clock maintenance — at an affordable, pay-as-you-go monthly subscription fee.

The relatively low cost of cloud-based Dynamics GP also means you can easily scale the number of users, storage space, or ERP features up or down. All you have to do is call your provider and ask for what you need.

Another benefit of a hosted solution is that it can be accessed via web browser, enabling you to keep track of transactions and consolidate your finances in real time on any device with an internet connection. This helps you maintain productivity levels even if employees are at home or out of town.

While some users might feel safe keeping their Dynamics data in-house, there’s actually an increased risk of data loss due to local disasters or power outages. If disaster does strike, the chances of your business surviving its first five years are slim. By storing financial information in offsite servers, you can minimize the impact of a disaster. Should on-premises servers go down, you can simply recover your data on any device and continue working as usual.

The biggest concern with the cloud, however, is security. With a hosted deployment, there’s a chance you might be sharing server space with another firm, putting your data at risk of leaks. Fortunately, this can be avoided when you partner with a managed services provider that offers enterprise-class security controls like access management and intrusion prevention systems on their service level agreements.

How to decide

Based on the benefits of each deployment model, you should be able to tell which one is right for your company. If you value customization and self-management of your Dynamics GP, then on-premises is the right one for you. But if you prefer to keep costs low, remain flexible, and want backups to guarantee your survival, then a hosted installation is the way to go.

If you’re still having trouble deciding, contact the team at WhiteOwl today. As a leading Dynamics GP provider in South Florida, we can advise you on whether to opt for cloud-based or in-house ERP after we’ve thoroughly assessed your processes and business requirements.