Cloud Dynamics – Oxymoron?

By definition, Microsoft Dynamics CRM, GP, NAV, AX, and SL require a full-fledged server that has to be in your building, or at the least a rented building, right? Or does it?  Unfortunately “cloud” is often equated with “hosting”, and “hosting” brings a lot of baggage with it. While that baggage and negatives may be accurate for hosting, they also may not apply or even be related to cloud.  “Cloud” is quite different than “hosting.”  For this reason and others “cloud Dynamics”, or “Dynamics in the cloud”, especially the ERP suite, may seem like an oxymoron, when in fact it’s not.

The first aspect of the oxymoron is that Dynamics in the cloud is usually paid for on a named-user basis and so if you already own the license, it simply can’t translate.  Perhaps a better way to evaluate this would be to think about it on a “per user-name” basis where every username that is accessing the cloud is paid for, but it may or may not correspond to the Dynamics license.  According to the Microsoft EULA, all software must be licensed, but there are two ways to approach it.  The first is the traditional “BRL” license model where a license is paid up-front to Microsoft and may be on a concurrent user model.  The second is called “On-demand” which is where the license is rented or leased each month for a fraction of the cost.  This is the first reason why “cloud Dynamics” is not an oxymoron. Whether you own the license already, or want to rent it, the cloud is versatile and can fit either licensing model.

A second aspect of the oxymoron is the foundation servers associated with running Dynamics CRM & ERP software.  Depending on the specific version of Microsoft Dynamics, multiple dedicated servers may be required, integration via email or authentication may be required, and root access or single-tenancy may be needed as well.  All of the above can certainly be met with a server deployment in your office building, but it may not be in an outsourced configuration.  This is an example of the baggage that often comes along with “hosting” – in a hosted environment, you may not be able to have multiple dedicated servers at a reasonable price point, integration with the outside world through email or authentication is difficult, and root access ability may be limited.  However with the cloud, all of the above are not only possible, but in some cases easier.  Dedicated server instances can be assigned to the software, email and authentication methods are already setup, preconfigured, and supported, and root access will give you or your implementation partner everything they need.

In conclusion “Cloud Dynamics” is not an oxymoron, and to the contrary it is usually the easiest and most cost-effective way to run Microsoft Dynamics CRM, AX, NAV, SL, or GP regardless of whether you already own the license or not.

- written and published by Reviora, the leading provider of managed private cloud solutions for ERP software and hosted dynamics. Call 888-REVIORA for questions or comments