On-premise vs Cloud: Factors influencing your choice

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1 On-premise vs Cloud: Factors influencing your choice By Prabhat Nagaraj Vice President October 19, 2017 Hitachi Solutions North America: Irvine Long Beach Nashville Vancouver Kitchener Seattle Edmonton Toronto Calgary Greenville San Diego San Bruno South Carolina Asia: Kuala Lumpur Bangalore Bangkok Hong Kong Manila Pune Singapore Taipei Tokyo Chennai Hyderabad Europe: London

2 On-premise vs Cloud: Factors influencing your choice As we approach the topic of cloud vs On-premise deployments, many customers struggle to understand the differences between these deployment options. Apart from the technical differences outlined by Microsoft in the table below, what else would you need to compute the benefits? Why cloud Cloud deployments provide a cloud service that is easy to scale up or down as needed, as well as data centers that are fully managed by Microsoft. The time spent implementing Finance and Operations can be significantly shortened, fewer customizations may be required, and the costs of IT hardware and infrastructure are lower. Cloud deployments include high availability, disaster recovery, sandbox environments, and application lifecycle management combined with cloud-based systems of intelligence, infrastructure, compute, and database services in a single offering. When needed, data failover in the cloud, automated deployment and continuous updates, and elastic compute capacity are available. A cloud deployment also provides data aggregation, financial reporting, and intelligence. Clarifications for UG Confidential Page 2 of 12

3 The cloud service provides customers with the greatest value, the broadest range of functionality, the best application lifecycle experience, the easiest and broadest integration with Microsoft Azure services, the best option for business insights and intelligence, and the most value for customers technology investments. Why on-premises With an on-premises deployment, existing data center investments can be leveraged. Customers can also configure their enterprise preferences to meet the regulatory and compliance needs of their business, comply with data sovereignty rules in regions where there are no Azure Data Centers, or ensure business continuity in areas with limited public infrastructure. A customer s business data and processes are disconnected from the cloud and are stored and run locally in the customer s or their partner s data center. Some connectivity is required for system management and updates which are enabled through Microsoft Dynamics Lifecycle Services (LCS), a cloud-based application lifecycle management service. Customer data that is related to the configuration and application customization may be stored in the cloud. For customers who choose to run Finance and Operations in their own data center, the on-premises deployment option will have a similar user-interface and application functionality as other deployment options. However, customers must take on the following responsibilities: Stand up their own infrastructure. Configure their own high-availability and disaster recovery solutions. Stand up sandbox environments. Manage their infrastructure, including scheduling operating system updates. The additional costs to deploy and manage these capabilities might lead to higher deployment costs and a greater Total Cost of Ownership (TCO). Tools for deploying the Finance and Operations software and updates will be available to partners and customers via Lifecycle Services. Unlike the cloud deployment option, Advanced Analytics and Azure Machine Learning services are not included in the on-premises deployment option. his topic lists features that have not been implemented in on-premises deployments of Dynamics 365 for Finance and Operations, Enterprise edition. The topic is divided into two sections: Clarifications for UG Confidential Page 3 of 12

4 The first section lists features that haven't been implemented yet. These features are not deprecated. The second section lists features that are not intended for use with on-premises deployments. There are no plans to implement these features. Features not yet implemented As of the day this paper is published, the following features have not yet been implemented in on-premises deployments. These features have not been deprecated. Feature Task recorder Support pane PowerBI.com integration Microsoft Office integration Electronic reporting (ER) integration with LCS ER integration with SharePoint Dynamics 365 for Finance and Operations Description Task recorder libraries in Lifecycle Services (LCS) are not supported. Task recordings can be loaded from or saved to the local file system. The Support pane (Help & Support > Support) is not yet available. PowerBI.com integration is not yet available for on-premises deployments. For example, the ability to pin a tile or a report from your PowerBI.com subscription to a workspace is not available. SharePoint on-premises support is not yet available. SharePoint online is supported. Skype for Business on-premises support is not yet available. Skype for Business online is supported. The ER integration with LCS is not supported. ER configurations can't be downloaded directly from LCS to Finance and Operations. Integration with SharePoint is not supported. SharePoint server can't be configured as a destination for electronic documents generated by using ER. The app is temporarily unavailable. Clarifications for UG Confidential Page 4 of 12

5 Feature Description - Warehousing mobile app Ability to export entities to your own database (BYOD) Author Power BI reports using OData Retail Purchase requisitions: Punch-out from external catalogs Trace Parser and PerfTimer SSRS scale out Telemetry This feature is currently not implemented. Authoring Power BI reports with OData using Power BI desktop or Excel PowerQuery tools is not supported. No Retail features are available for use in on-premises deployments at this time. It is not possible to check out a shopping cart from an external catalog to a purchase requisition. These tools are not working or have limited functionality for this release. These features will be implemented in a future release. Currently SQL Server Reporting Services (SSRS) does not support scaling out. This feature will be added in a future release. Currently no telemetry is transferred into the cloud. In a future update we will start transferring telemetry data into the cloud. Clarifications for UG Confidential Page 5 of 12

6 Features not intended for use in on-premises deployments The following features are not intended for use in on-premises deployments. There are no plans to implement these features in on-premises deployments. Feature SSRS Report Viewer control Document Routing Agent Description SQL Server Reporting Services (SSRS) does not support a report viewer control that is compatible with the on-premises web client. Reports are rendered as PDF documents by the on-premises service. Use extensions to enable embedded drill-thru links in application reports. This component is not necessary for on-premises deployments. Onpremises deployments are hosted on domain-authenticated servers. This offers secure, direct access to network printer devices. Measuring other benefits The approach to measuring benefits for an upgrade to cloud is quite complex. There are many layers of benefits which may not seem apparent immediately. However, in order to truly grasp the benefit of migrating to the cloud, customers often will need to understand and account for the Semi Direct and Indirect Savings. While Direct Savings such as IT costs may be apparent and easy to measure, Semi-direct and Indirect are often difficult and requires certain assumptions to be made in order to quantify such benefits. It is important to note that there is a decreasing believability as we move from Direct Savings to Very Indirect Savings as shown in the graph below. Clarifications for UG Confidential Page 6 of 12

7 Figure 1 Believability of benefits while quantifying the ROI of an upgrade 1st Order - Direct savings A tangible action that will happen Can you cut a budget number? Believability = 100% Categories - Need to update Infrastructure Eliminate a cost Close a factory Obtain a pricing discount Eliminate a fine 2 nd Order - Semi-direct savings A tangible action that is likely to happen in the future Look for a hedging word. Believability = 70% Clarifications for UG Confidential Page 7 of 12

8 Categories- We expect to eliminate a cost I plan to fire an employee We should be able to close a factory It s likely we ll obtain a pricing discount There s little doubt we can eliminate a fine 3rd Order - Indirect savings An action that increases a worker s productivity A single step that exists but id hard to calculate Believability = 40% Categories Automate scheduling Single sign on Loan analysis and approval Mobile access to CRM Better Spam filtering 4th Order - Very indirect savings An action that does not directly increase a worker s productivity Multiple steps between the action and the impact. Believability = % Categories Web site monitoring Training managers Weather forecasting Better decision-making Increased customer satisfaction Clarifications for UG Confidential Page 8 of 12

9 General Skills for Deployments Lifecycle Services (LCS) SQL Server Reporting Services (SSRS) Power BI SharePoint or OneDrive for Business PowerApps, Microsoft Flow, and the Common Data Service (CDS) Visual Studio and Visual Studio Team Services Office 365 Administration Lifecycle Services LCS is a cloud based tool provided by Microsoft that is used to deploy, maintain, and monitor your Dynamics 365 for Finance and Operations environments. The site is accessed by partners and customers to deploy new environments, upload data and code packages for deployment in one or more of your environments. It provides a set of monitoring tools to view the health of your system along with a variety of project management and document management tools that help with your ERP implementation. LCS is an integral part of all Dynamics 365 for Finance and Operations deployments and it is therefore important to ensure that you have staff that is properly trained on the tool. SQL Server Reporting Services (SSRS) SSRS is the reporting platform that is used for operational reports with Dynamics 365 for Finance and Operations. You will likely want skills related to SSRS for developing and extending reports no matter which deployment option you select. With cloud deployments the installation, configuration, and on going maintenance are performed by Microsoft as a part of your subscription. If you select to deploy on-premises you will need to install, configure and maintain your SSRS environment using your own staff or outsource this to a third party. Power BI Power BI is a cloud based reporting solution that offers rich visualizations such as charts and KPIs to be embedded into Dynamics 365 for Finance and Operations. Although Power BI is not required in order to use Finance and Operations, it greatly enhances the user experience for analytics. If you plan on leveraging the full capabilities of Power BI reporting and analytics you will want to ensure that you have users who are trained to develop or modify repots and dashboards, as well as staff who can administer your Power BI account, including security, subscriptions, and connections or On-Premise gateways. SharePoint or OneDrive for Business There are several options available in Dynamics 365 for document management and repository. This includes SharePoint, and One Drive for Business. Although neither of these components are required, you may choose to implement one or both of these Microsoft products to enhance the end- Clarifications for UG Confidential Page 9 of 12

10 user experience for saving and sharing documents in or outside of your organization. If you plan to implement these features and integrate them, make sure that you have resoures who can install, configure, administer, monitor, and secure the solutions. PowerApps, Microsoft Flow, and the Common Data Service Microsoft delivers a full suite of capabilities that can help you manage mobile accessibility of your data, integration of your data between systems, and a common repository for your data that is all optional. PowerApps is a tools that allows you to quickly and easily create new mobile applications by accessing data directly from your Dynamics 365 for Finance and Operations instance or from a multitude of other data sources including the Common Data Service. Microsoft Flow can be thought of as an orchestration or integration tool that allows you to configure connections between two data sources and define user created rules for the mapping of the data and when actions should happen. It also provides support for approvals. Microsoft Flow can be used with 0Power Apps to deliver mobile applications that can publish data directly into Finance and Operations or a multitude of other data sources. The CDS is a service that contains a Common Data Model (CDM) which is basically a database that can contain any of your data from any of your Dynamics 365 products, Office 365 products, and a variety of other sources. The data model can be extended to support new entities and can be leveraged as a middle man for integration between multiple systems, PowerApps, and Flow. Visual Studio and Visual Studio Team Services Visual Studio is the development environment for Dynamics 365 for Finance and Operations. If you need to extend the functionality of the system you will need staff that is experienced in the use of object oriented programming, the use of Visual Studio for development, and the process for building and deploying packages from Visual Studio through LCS. VSTS is a cloud based source control system that developers use to manage code changes and the build process. VSTS can also be leveraged as a project management tool for fit-gap analysis, tasks and project metrics. Office 365 Administration Although Office 365 is not required in order to run Dynamics 365, the two products are designed to work better together. Some of the administration components of Dynamics 365 are managed through the Admin center of Office 365 even when you are not using Office 365. This includes user and license management, Power Apps and Flow administration and access to the Dynamics 365 admin centers. Recommended Skills for Cloud Deployments Clarifications for UG Confidential Page 10 of 12

11 Windows Server Internet Information Services (IIS) Virtual Machine Management Azure IaaS Azure SQL Database Azure Active Directory Azure Blob Storage Windows Server When you deploy development or testing environments in LCS, you have the option to deploy them locally or in Azure. For Azure hosted machines, certain maintenance and features are managed by Microsoft. For locally hosted images, you are responsible for the uptime and maintenance of the machine. These virtual machines run on Windows Server and require periodic maintenance like any other server. If you choose this options for your development or testing environments, you will want to make sure that you have staff available who can manage your windows server maintenance and perform common tasks like review event logs, manage services, and so on. Internet Information Services (IIS) IIS is the technology that is used to run the application object service of Dynamics 365 for Finance and operations. Although you should not need to deploy or configure this component, in locally hosted machines you will want to have resources that can maintain and monitor IIS. Virtual Machine Management If you are using Azure hosted or locally hosted development or testing environments, they are always deployed inside a Virtual Machine. For Azure hosted machines a set of tools inside the Azure Portal are available to help you manage and maintain your environments. For locally hosted environments, you are responsible for maintaining and monitoring the virtual machine as well as the setup and configuration of the virtual machine in the Hyper-V manager. Azure IaaS Azure SQL Database Azure Active Directory Azure Blob Storage Recommended Skills for On-Premises Deployment Microsoft Azure Server Service Fabric - Azure Service Fabric is a distributed systems platform that makes it easy to package, deploy, and manage scalable and reliable microservices and containers. Service Fabric also addresses the significant challenges in developing and managing cloud native applications. Azure Service Fabric is at the heart of on-premises deployment and Clarifications for UG Confidential Page 11 of 12

12 you will need resources that understand the deployment, configuration, management and dayto-day use of Azure Service Fabric. Internet Information Services (IIS) - Internet Information Services (IIS) for Windows Server is a flexible, secure and manageable Web server for hosting anything on the Web. Because Dynamics 365 is a web-based HTML 5 application; IIS is used to host the application object server that delivers application business logic to the user through a web browser. You will need resources who can setup, configure, and manage your web services through IIS. Active Directory Federation Services (ADFS) Dynamics 365 for Finance and Operations requires ADFS running on Windows Servers Additionally, your domain controller must be Windows Server 2012 R2 or later with a domain functional level of 2012 R2 or greater. In other words, all domain controllers in your domain must be running Windows 2012 R2 or later. You will need resources who can configure, maintain, and administer your ADFS environment. SQL Server 2016 The transactional database for your Dynamics 365 for Finance and Operations environment with an on-premises deployment runs on SQL Server You will need to make sure that you have resources available to install, configure, maintain, and administer the SQL server and to serve as a database administrator. Windows Server 2016 All the components of Dynamics 365 for Finance and Operations such as Management Reporter, SQL Server, IIS, and so on must be run on Windows Server You will want to make sure that your staff is skilled in the installation, configuration, and maintenance of Windows Server PowerShell - PowerShell is a task automation and configuration management framework from Microsoft, consisting of a command-line shell and associated scripting language. PowerShell is used frequently throughout the Dynamics 365 for Finance and Operations installation and configuration process. You will want to make sure that you have resources available that can read, troubleshoot and run PowerShell scripts. Server Message Block The Server Message Block (SMB) protocol is a network file sharing protocol that allows applications on a computer to read and write to files and to request services from server programs in a computer network. The SMB protocol can be used on top of its TCP/IP protocol or other network protocols. This protocol has three practical applications: file storage for virtualization, SQL server database file storage, and traditional storage for end-users. With a Microsoft Dynamics 365 for Finance and Operations on-premises deployment, SMB is used for file storage and you will want to ensure that you have resources available that can configure and administer your SMB configuration. Clarifications for UG Confidential Page 12 of 12

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