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MB-700 · Question #117

A client plans to implement Dynamics 365 Finance. The client is unsure whether to use a cloud-based or on-premises implementation. For which scenario should the client install the on-premises version

The correct answer is C. The client needs to comply with federal regulations and keep their financial data at their. On-premises deployment of Dynamics 365 Finance is required when federal regulations mandate that financial data remain within the client's own controlled infrastructure.

Architect solutions

Question

A client plans to implement Dynamics 365 Finance. The client is unsure whether to use a cloud-based or on-premises implementation. For which scenario should the client install the on-premises version of the app?

Options

  • AThe client has integrations that depend on direct Microsoft SQL access.
  • BThe client is concerned about their retail stores losing internet connection and not being able to
  • CThe client needs to comply with federal regulations and keep their financial data at their
  • DThe client already has a significant infrastructure investment.

How the community answered

(27 responses)
  • A
    4% (1)
  • B
    7% (2)
  • C
    85% (23)
  • D
    4% (1)

Why each option

On-premises deployment of Dynamics 365 Finance is required when federal regulations mandate that financial data remain within the client's own controlled infrastructure.

AThe client has integrations that depend on direct Microsoft SQL access.

Direct Microsoft SQL access is not a valid justification for on-premises deployment because cloud integrations should use OData, APIs, or Data Management Framework rather than direct database access.

BThe client is concerned about their retail stores losing internet connection and not being able to

Offline retail store connectivity is addressed by Dynamics 365 Commerce's offline Point of Sale capability, which is independent of whether the Finance module is cloud or on-premises.

CThe client needs to comply with federal regulations and keep their financial data at theirCorrect

Certain federal regulations - such as those governing defense contractors, government agencies, or regulated financial institutions - explicitly prohibit storing sensitive data in shared or foreign cloud environments, requiring the client to host Dynamics 365 Finance on their own on-premises servers. The on-premises deployment option exists specifically to satisfy data residency and sovereignty mandates that cloud-hosted solutions cannot fulfill.

DThe client already has a significant infrastructure investment.

Existing infrastructure investment is a financial consideration, not a technical or regulatory requirement that mandates on-premises deployment over the cloud.

Concept tested: Dynamics 365 Finance on-premises vs cloud deployment decision

Source: https://learn.microsoft.com/en-us/dynamics365/fin-ops-core/dev-itpro/deployment/on-premises-overview

Topics

#Deployment options#On-premises implementation#Cloud vs on-premises#Regulatory compliance

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