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

Question

Options

• AThe client is concerned about disaster recovery and high availability.
• BThe client needs to comply with federal regulations and keep their financial data at their
• CThe client wants direct access to production environments.
• DThe client has integrations that depend on direct Microsoft SQL access.

• A
  4% (2)
• B
  76% (37)
• C
  14% (7)
• D
  6% (3)

Explanation

The on-premises version is appropriate when regulatory or compliance requirements mandate that financial data remain within the organization's own infrastructure or specific geographic jurisdiction. Some federal regulations (such as those governing defense contractors or government agencies) prohibit storing sensitive data in public cloud environments. Option A is incorrect because Microsoft's cloud platform actually provides superior disaster recovery and high availability compared to most on-premises setups. Option C (direct production access) is manageable in both models. Option D (direct SQL access) is a real differentiator of on-premises, but the exam treats data residency compliance (B) as the primary and most specific valid reason.

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