Is Microsoft Dynamics NAV in the Cloud Right for You? It Depends...

The cloud tsunami is here! More businesses are now weighing their options about running their ERP solution in the cloud. An onslaught of information (and misinformation) is being churned about, so there are two sides of the coin regarding this important decision. The cloud is simply a hosted, off-premise SaaS (software-as-a-service) solution for all your business software applications that are traditionally located physically at your site and through a data center.

Here are a few reasons some companies rely on Dynamics NAV in the cloud. NAV 2013, with all its updated enhancements and features, has made deploying this solution much easier. NAV in the cloud versus on premise has the same functions and flexibility but with less initial costs involved, usually up to 30% to 40% in most cases. You’re guaranteed 24/7 up time, with no capital spending for hardware (servers). With Microsoft Dynamics NAV as a cloud solution, you can be charged on a per-user basis, per-month fee for the software, which can be more cost-effective than having to build and support your own servers and data center.

Some organizations cannot afford an in-house IT department. With a cloud solution, the data center hosting NAV is responsible for the management, infrastructure, technical support (with a NAV engineer), and maintenance issues (anti-virus security, backups, and data storage). You may also choose what applications the host will support: Microsoft Dynamics, SQL server, Active Directory, SharePoint, and notebook and mobile devices.

Today, on-premise Microsoft Dynamics NAV solutions are more widely used than partner-hosted solutions, but this may change in the future. Some say on premise provides more flexibility and security, which is important because Microsoft Dynamics NAV is essential to running your business. Customization is also easier when installed on premise and customers like to receive technical help through their VAR (value-added reseller) rather than outsourced assistance or having to search through FAQs for answers. Some hosted solution providers charge excessive switching costs to keep you with their hosting services. Finally, many clients don’t feel confident having their sensitive data in the cloud.

An ERP SaaS option can be the right choice for many businesses, but that’s not to say on premise is going to disappear any time soon.  Don’t throw away those servers! You do have a choice. To help you decide between Microsoft Dynamics NAV as a cloud or an on-premise solution, please feel free to contact The TM Group today at 888.482.2864 or visit our website at www.tmgroupinc.com. We would be happy to discuss all your options in more detail. We look forward to hearing from you and designing the perfect solution for your company.

Prepared by Jennifer Swiderski, Mark Hoekstra CPIM,  Susanne Ferguson, and Ken Jacobsen.