On-Premise vs. Online

The on-premise version of Dynamics CRM offers more customization than the planned Microsoft-hosted Dynamics CRM Online service.

Microsoft’s online CRM service will allow customers to define new record types (entities) and to deploy simple custom workflows created with the application’s built-in “declarative” workflow tools. Customers will also be able to write on-premise applications that access Microsoft’s online service via its Web services interfaces. However, customers will not be able to install custom code on Microsoft’s CRM servers in the form of plug-ins or custom workflows written with Visual Studio.

Note that these restrictions apply to Dynamics CRM as hosted by Microsoft; other service providers hosting Dynamics CRM might offer more customization options.

Feature	On-Premise	Online
Plug-ins	Yes	No
Declarative Workflow	Yes	Yes
Custom Workflow	Yes	No
Web Services	Yes	Yes
Authentication	Active Directory,