Bramvia — Business Central Experts
The cloud-or-on-premise decision shapes cost, security, and which AI features you can use. Here is a clear framework to choose.
Short answer: for most companies Business Central in the cloud is the better choice. Microsoft runs the updates, you maintain no servers, and the AI features (Copilot and agents) only exist in the cloud. On-premises still makes sense when you have a hard requirement to keep data on your own servers, machines that need very low latency, or contractual constraints. Base the decision on five-year cost and real requirements, not on habit.
Point by point
| Cloud (SaaS) | On-premises | |
|---|---|---|
| Updates | Automatic, two major releases a year | Your project, your cost, your date |
| Infrastructure | Run by Microsoft | Servers, backups, SQL Server and Windows on your side |
| Security | Microsoft data centres, backups included | Depends on your IT team |
| AI features | Copilot and AI agents available | Not available |
| Access | Browser and mobile app, from anywhere | Usually VPN or remote desktop |
| Cost | Subscription per user per month | Licences, servers, administration and upgrades |
Cost over five years
Comparing licences alone is misleading. On-premises you also pay for servers and their replacement, Windows Server and SQL Server licences, backups, administrator time and an upgrade project every few years. In the cloud most of those lines disappear and you are left with a subscription per user. See what Business Central costs to run the numbers for your team.
Security and where the data lives
Business Central online runs in Microsoft data centres in the region you choose when the tenant is created, with encryption, backups and security updates included. On-premises, all of that is your responsibility, from backups to operating-system patches.
When on-premises still makes sense
- A written requirement to keep data on your own servers, from a contract or industry rule.
- Machines and devices that need very low latency on the local network.
- Heavy legacy customisations that cannot yet move to extensions; then a transitional phase is common.
The trade-off is real: on-premises means you own the maintenance and give up the AI features.
A simple checklist
- Do you have a hard, written requirement to host data yourself? If not, choose the cloud.
- Do shop-floor machines need the ERP without delay? Check whether an API integration is enough.
- What did your last upgrade cost, and how long did it take?
- Do you want AI agents, for example for supplier invoices or orders arriving by email?
FAQ
Is Business Central in the cloud secure? Yes. Data sits in Microsoft data centres with encryption and backups included, in the region chosen for your tenant.
Can we start on-premises and move to the cloud later? Yes, but every customisation built the old way today raises the cost of that move. It is better to build extensions from the start.
Does Copilot work on-premises? No. Copilot and the AI agents in Business Central are only available in the cloud.
Is the cloud more expensive? Per user per month it can look that way; over five years, once servers, administration and upgrades are counted, it is usually cheaper.
Choosing a new system? See how long an implementation takes.
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