Dynamics 365 on the Cloud- Features and Benefits of Cloud Migration

1. Dynamics 365 on the Cloud- Features and Benefits of Cloud Migration

Cloud migration adds a new level of mobility, agility, scalability, and flexibility to the Microsoft Dynamics 365 platform.

Why Migrate from Dynamics On-Premises to Dynamics 365 in the Cloud?

The cloud has revolutionized the business world as it is deep-rooted technology that has become a necessity nowadays. Almost all companies across various industries are migrating their systems and operations to secure cloud-based platforms at an increasingly rapid rate, leaving their competitors to contend with operational interruptions, growing IT costs, and increased commercial risk. Since migrating to the cloud unlocks many benefits and enhances business agility, Microsoft has adopted a cloud-first approach for its Dynamics 365 solutions. With the cloud-first approach, customers are increasingly adopting cloud technology and moving current on-premises systems to the cloud. Cloud migration adds a new level of mobility, agility, scalability, and flexibility to the Microsoft Dynamics 365 platform. If you are still using on-premises software or are new to Dynamics, there are many reasons why you should leverage Dynamics 365 cloud-based solutions.

Before we jump right into why it is important to migrate from on-premises to the Dynamics 365 cloud, let us discuss what a cloud migration is and what are the major benefits of a cloud migration.

What is a Cloud Migration? What are the Types and Advantages?

SMEs and large organizations are increasingly moving to the cloud as businesses grow and technological needs continue to expand. The process of moving your services and applications to the cloud is the basic definition of a Cloud Migration. It is an inevitable part of cloud computing, which has transformed the corporate world by making data and software accessible from any device. The type and extent of cloud migration may vary from one company to another. While some businesses may choose to migrate completely to the cloud, others may choose to migrate in stages, with some remaining on-premises operations. In addition, some businesses that have a lot of processes may need more than one cloud solution.

Depending on the organization, the cloud migration type can be:

The Lift and Shift method includes transferring software from on-premises resources to the cloud without any modifications to the application or workflow.

Shifting to SaaS strategy entails handing over one or more of your favorite applications to a cloud service provider specialist.

Refactoring legacy applications which enables companies to recreate their legacy applications in the cloud platform.

Re-platforming is a cloud migration technique that entails changing application code to make it cloud-native.

Comparison Chart Between Cloud and On-premise

Advantages of Migrating to the Cloud:

  • Cost Savings: Cloud migrations reduce operating costs because cloud service providers offer maintenance and updates for a small upfront fee. Also, cloud migrations provide indirect cost savings by reducing the technical team and licensing requirements.
  • Flexibility: Cloud migrations enable upward, and downward expansions based on business requirements and horizontal expansion through internationally distributed data centers and the integration of hybrid cloud computing solutions.
  • Scalability: As your company develops, you will be able to innovate, expand, and pivot quickly, as cloud migrations help free up space and capital by allowing you to scale up or down depending on your IT requirements.
  • Performance: Since data is more visible in the cloud, cloud migrations enable improved interactions, communication, and quicker decision-making because the time spent on infrastructure is reduced.
  • Collaboration: Migrating to the cloud enables your team to access critical data and business information from any device, anywhere in the globe. This ensures that your team is operating efficiently and securely from any location, with minimal downtime.
  • Data Security: Numerous case studies have shown that data kept in the cloud is much more secure than data kept on-premises. Furthermore, cloud companies provide greater data security, control access, and availability, enabling only authorized users to access sensitive data.
  • Disaster Recovery: One of the significant advantages of cloud computing for businesses is that it aids disaster recovery efforts. In the event of a disaster, you will still have all your critical business data in the cloud. Therefore, hosting systems and keeping records in the cloud is a prudent precaution.
  • Deployment: Rather than spending weeks or even months or years implementing an internal IT infrastructure, you can deploy the cloud-based services in just an hour or a few days, depending on your needs.
  • Updates: Cloud service providers manage software updates, but automatic software updates are included in cloud migration and are available at a fraction of the cost of usual licensing fees.

Why Migrate from Dynamics On-Premises to the Dynamics 365 Cloud?

There are many reasons why migrating to the Dynamics 365 cloud is the best decision to make for your organization right now.

Let us look at some of the main features and advantages of migrating to the Dynamics 365 cloud.

Dynamics 365 Cloud Features:


  • Seamless implementation without additional hardware expense
  • Consistent product developments
  • New feature upgrades twice a year
  • Remote access
  • Scalability and flexibility


  • Minimizes overhead spending to maintain a dedicated private server
  • Predictable monthly subscription
  • No new licensing costs
  • No recurring licensing renewal expenses


  • Five layers of information security and data protection
  • Automated disaster recovery services
  • 24/7 support


  • Smart integration with the Microsoft Office 365 platform
  • Embedded Artificial Intelligence capabilities
  • Supports Power Apps and Power BI

Significant Benefits of Leveraging the Dynamics 365 Cloud

  • Have A 360-Degree View of Your Business

The Dynamics 365 cloud allows you to access all your critical business data in one centralized location. Traditionally, with on-premises, data is kept separately which makes it difficult to view information at the right time. With the Dynamics 365 cloud, you can integrate your CRM and ERP data to get a 360-degree perspective of your organization. Also, you can access your data and insights easily through familiar tools such as Microsoft Office 365 and Microsoft Power BI.

  • Quickly Adapt to Business Needs

When you migrate to cloud-based Dynamics 365 solutions, you can enhance your Dynamics 365 experience with pre-built business applications developed by Microsoft. Not only do you have access to Microsoft applications, but you also have access to other selected partner applications, which are all available through AppSource. You can also build your own apps with the Microsoft Power Platform and customize them according to your business needs.

  • Enhance Productivity and Collaboration

Reducing the requirements of IT resources by migrating to the cloud simultaneously gives them more time to focus on high-priority tasks. In addition, reducing the complexity associated with managing systems and maintenance tasks gives your team more flexibility and improves overall productivity. The Dynamics 365 cloud also enables efficient collaboration by providing access for remote employees to share real-time information.

  • Simpler Software Upgrades

When you implement Dynamics software on-premises, you must go through a lengthy and complex migrating procedure every time there is a new version. When you migrate to Dynamics 365 in the cloud, software upgrades are automatic and continuous with regular additions of new features and functionality. These automatic upgrades boost adoption rates of new features and enable you to get the most out of your software.

  • Quick and Easy Innovation

On-premises innovation usually entails a lot of new code or an inability to integrate if the service or software was not included in your initial package. However, with the Dynamics 365 cloud, you can easily innovate by adding Microsoft Azure or third-party services to your Dynamics 365 platform. This allows you to develop faster and at a lower cost.

  • Power Apps and Power BI

Easy access to Microsoft Power Apps and Power BI is one of the major advantages of migrating to the Dynamics 365 cloud. With Power Apps, you can create a custom display through drag-and-drop functionality. In addition, Power Apps offer more advanced features, such as the ability to create an app, approve invoices on the move or provide data to your teams. Microsoft Power Apps include several ready-to-use applications with which you can get started immediately.

How to Successfully Migrate from Dynamics 365 On-Premises to the Dynamics 365 Cloud

A successful Dynamics cloud migration will help you cut costs, increase scalability, and dramatically lower the chance of a cyber-attack. Still, migrating to the cloud can be a daunting task as there are many concerns regarding stability and pricing. To ensure a successful cloud migration, you need the right strategy including planning and preparation. Building the right strategy for your cloud migration is the critical step that assures migration success.

Our team at DemandDynamics will help you understand, analyze, and choose the right strategy to successfully migrate to the cloud. Reach out to us for expert opinions on how to transform your cloud migration ideas into successful implementation of Dynamics 365.

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