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

Disaster recovery and high availability are areas where the cloud excels over on-premises, as Microsoft's cloud provides geo-redundant failover and SLA-backed uptime that on-premises infrastructure rarely matches.

Federal regulations such as FedRAMP requirements, data sovereignty laws, or industry-specific mandates may prohibit storing financial data outside of a client-controlled environment, making on-premises the only compliant option. On-premises deployment gives the client full control over data storage location, security controls, and audit access required by regulatory bodies.

An existing infrastructure investment is a sunk cost and business preference, not a technical or compliance requirement that necessitates on-premises over cloud deployment.

Direct SQL access to the Dynamics 365 Finance database is not a supported or recommended integration pattern in either deployment model; standard integrations use APIs and the Data Management Framework.