Drag and Drop Question A company plans to implement Dynamics 365 Finance. The company is unsure whether to use a cloud implementation or an on-premises implementation. You need to determine the…

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Dynamics 365 Finance: Cloud vs. On-Premises Features

This question tests your knowledge of which Dynamics 365 Finance features are available depending on deployment type. The core distinction: cloud (online) deployments have access to all platform features, while on-premises deployments have restricted access due to limited or no Lifecycle Services (LCS) / Microsoft cloud connectivity.

Item 1 - Mobile App, Workspaces, and Platform

Applies to: Both Cloud and On-Premises

The core mobile workspaces and platform framework are supported in both deployment types. Microsoft made this available on-premises to allow field workers and mobile users basic functionality. However, cloud deployments get more workspace options and updates faster.

Common misconception: People assume mobile = cloud only. The mobile platform itself ships with the product regardless of deployment.

Item 2 - Save or Load Task Recordings from the BPM Library

Applies to: Cloud Only

The BPM (Business Process Modeler) library lives in Lifecycle Services (LCS), which is a Microsoft-hosted cloud service. To save/load task recordings from BPM, the environment must have LCS connectivity. On-premises deployments have very limited LCS integration and cannot sync task recordings to/from the BPM library.

Common misconception: Task Recorder itself works on-premises - but saving to/loading from the BPM library requires the cloud LCS connection. This is the critical distinction exams test.

Item 3 - Integration with Power BI Desktop

Applies to: Both Cloud and On-Premises

Power BI Desktop connects directly to the local AOS (Application Object Server) using an OData feed or direct query, which works regardless of whether the environment is cloud-hosted or on-premises. This is distinct from embedded Power BI dashboards (Power BI.com service), which are cloud-only.

Common misconception: Confusing Power BI Desktop (local tool, works both) with the embedded Power BI service (cloud-only). Exams exploit this distinction frequently.

Summary Table

The BPM library feature is the key differentiator - it is the only item exclusive to cloud deployments because it depends on LCS cloud infrastructure.

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