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Welcome everyone to another episode of Dynamics Corner.
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Is it faster if I run on a treadmill inside my house versus running outside?
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I'm your co-host, chris.
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And this is Brad.
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This episode was recorded on August 7th 2025.
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Chris, Chris, Chris, Is it faster?
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I think it's a matter of how fast you're running.
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Well, it depends the environment too, right, like if you're inside on a treadmill, it's consistent.
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Maybe outside you get the environment, you get the asphalt, maybe some trail.
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Some elevation.
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I see what you're saying.
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And just like the environment may impact your choice on where you're going to run, you also have choices when you're using Business Central to run Business Central Online or Business Central On-Premise With us today we had the opportunity to talk about some of the differences between those two.
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We had some two amazing guests.
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We had Alexander andilio.
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Arrivederci, hello, hello, good morning.
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Hello, hello Hello hello.
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How are you?
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How are?
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you doing, sir?
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Yeah, all good.
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How's Santa?
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Can you hear me all well?
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We hear you well, I hear you well.
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It's always good to hear you.
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We're waiting for the real Italian stallion over here.
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It's a pleasure, it's an honor to speak to the real Italian stallion and Mr Alexander, do you know, to the real Italian stallion?
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And, mr Alexander, do you know where the real Italian stallion comes from.
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Nope, no, alexander, do you know?
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Sorry, do I know what?
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The real Italian stallion.
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Is it Rocky?
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Rocky Balboa?
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It is.
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Rocky.
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Balboa.
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So that's where the real Italian stallion comes from you're the real.
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Italian stallion, not Rocky Balboa.
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I'm honored of this title well, I say it to you all the time.
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Now, I didn't think you picked it up, or if anybody knew, but that's what it is.
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So, no, that's good.
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We appreciate you both taking the time to speak with us today.
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I've been looking forward to this conversation for a long time, because I have this question asked to me often.
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When I say often, it's probably almost daily.
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Now I don't want to say almost daily, but it's several times a week.
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You know what that question is what is the difference between business central online and business central on-premises?
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And we couldn't think of two others.
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Well, we could think of two others that would be able to help us answer that question, besides the two of you.
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So you're on the spot now, both of you.
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I let Alexander start.
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But before we get into that, I do have some questions on it.
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And before we get into that, would you mind telling us a little bit about yourself, Alexander?
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I?
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do have some questions on it.
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And before we get into that, would you mind telling us a little bit about yourself, alexander?
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Yeah, I'll try.
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First of all, good evening, good afternoon, it's good morning for you, and thank you for having me in this podcast.
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I'm really happy to be here.
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Well, a little bit about me.
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Well, you know me as a business central developer.
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Yeah, I started in this area well, pretty long time ago.
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It was over 20 years now, uh, when business center was still called navision attain and it wasn't even microsoft.
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And since that, all time, since that time I'm still working with, with navision dynamics, nav, bc, whatever it's called.
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Well, I start.
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I've been so in different capabilities, let's say, worked at an end client in consulting.
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For a while we even worked with duilio together providing support for partners at microsoft.
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Although duido was on the front line, I was hiding behind and the development team actually fixing those bugs that made it through the first line support.
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It's good to be behind the front lines, to be hidden in the back.
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I never envy those who are in the front actually dealing with partners and clients, so Duilio was the hero.
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No no.
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Maybe you were fixing your own bugs?
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I don't know.
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That's a shot from the front line.
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That was good.
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I like that.
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It was 15 years ago, probably 15 years Long.
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Probably 15 years Long, long time ago, in another galaxy.
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Time goes so quick it feels like it moves fast.
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Twilio, would you mind telling us a little bit about yourself?
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Yeah, I'm Twilio Tacconi.
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I used to work in Microsoft like Alexander for more than 15 years and then I moved to a partner site, and in a partner site I'm more on the performance side.
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I don't want to define myself as a developer, I do not pretend to, but I'm just analyzing, through telemetry and other sources, depending on if you are on-premises or online, what is actually the output of the code.
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So this kind of question on-prem or online it is something that I have in my heart, in my soul actually, and I'm just taking and tackling this every day in a different way from the specific area that I'm working on.
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Yeah, that's good, that's good.
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Thank area that I'm working on.
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Yeah, that's good, that's good.
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Thank you both again for being on.
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Thank you both for all that you do for the community and for everyone using Business Central.
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So, to go back to it, it is a question because when a customer has an implementation, or if they're looking at a new implementation, or if they're looking to upgrade, they are presented with Business Central Online and Business Central On-Premises from some partners and as well as the literature they can read.
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But along with the question of what's the difference, you know, the first question is well, which one should I use?
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But in order to make the decision on which one you should use, I think it's important to know what the differences are and maybe why someone would use Business Central Online versus on-premises or vice versa.
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So, with that, what do you guys think?
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What would you say are the differences?
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Would that make a difference, though, brad?
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If it's going to be from a business aspect, would you consider the cost as well, on top of long-term maintenance, on top of the technical?
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This, is what I'm looking for.
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It's what are the differences between business central online and business central on-premises?
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And then that's always the other day.
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Do you say on-premise or on-premises?
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Did you know?
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A lot of people talk about that, by the way, and then some just say, yes, you say on-premise or on-premises?
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Did you know?
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A lot of people talk about that, by the way, and then some just say yes, it's on-premise, and then some just cut it short and say on-prem to avoid it.
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But no, there are many differences.
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So, mr Duilio and Alexander, what do you think?
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What are some of the big differences between Business Central Online and on-premises?
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Well, if Duilu, let me start, I would say well, we can look from very different points of view.
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Maybe we can think first, like Christopher suggested, from a business perspective, from development, maintenance costs and so on.
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But I think the most important aspect right now, first of all, that if a new customer comes to you and asks if I should use on-prem or SaaS, the first thing to consider is that they can't buy an on-premise license anymore.
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So I think the question is solved basically oh okay, yeah, basically oh, okay yeah, so so we're done.
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We're done with the conversation.
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Yeah that's the biggest difference.
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I believe it's Microsoft like incentive they want clients to use to be in SaaS.
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So there is no new licenses on-premise.
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Okay.
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So for those that are using the existing versions and they want to move to Business Central Online, there's still some differences from those using Business Central on-premise and Business Central Online to maybe make the move to Business Central online if they're on-premise or vice versa, if they have the licenses in place or if they do have licensing for it as well.
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So we talked about there is a license required for Business Central on-prem, so you are required to buy licenses if you're using Business Central Online, but those are the user license and the user levels, whereas Business Central On-Prem, you're required to have the user license, the application license and any licenses that you need for extensions as well.
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So what else, mr Dweller, do you have something big?
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I know you have a lot in there, all the infrastructure behind the scene.
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But if you want to go in the on-prem then you have to pay for the license, plus you have to create your own infrastructure, maintain your own infrastructure.
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Those are the two main point in here.
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So the same license, but then if you want to go into on-premise, then you have to take care also of what is running behind the scene.
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Then you have to purchase your license of what is running behind the scene.
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Then you have to purchase your license for the SQL server and for the SQL server.
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Then you have to purchase the license for your Windows server and then you just have to purchase your own SAN for the disks in order to make it perform, and so on and so forth.
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And this is just for the infrastructure per se.
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And then you have to maintain the infrastructures.
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I mean that once you have deployed everything, even the deployments, you have to do this by your own.
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Once the deployment has been done, then you just have to schedule your own maintenance for the SQL Server re-indexing, update of the statistics, all the jobs that you want behind the scene, everything that is upon you, including the typical maintenance that you have behind the scene.
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Everything it is upon you, including the typical maintenance that you have to do on the SQL server and on the Windows server, from a security perspective or using a patching strategy.
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All of the things that I told you has been performed and done by Microsoft under the umbrella of the Dynamics 365 Business Central online version.
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So this is one of the two big differences.
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Don't you have to do the IIS and web services and SSL and DNS, all of that right.
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Yeah right, completely completely.
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And then you have to take care of everything, even if your infrastructure because this is part of your infrastructure even if your infrastructure might have some problem with security, then you have to do penetration tests.
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This is what Microsoft also does by itself in order to see okay, is my online version secure enough?
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And if it's not secure enough, then they will add much more security substrate, software substrate or controls or whatever it is, and it is continuing evolving, upgrading, updating.
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That is one thing.
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That sounds like a big one.
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We're starting off pretty big with a big difference.
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So one of the differences with online, you don't have to be concerned with the infrastructure.
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With on-prem, you have to be concerned with the infrastructure and again, someone may need to use it and they may have an infrastructure.
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But when I think of maintaining infrastructure, you also have to have the individuals to maintain the infrastructure.
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So that's what just came to me when were saying that, as you're thinking of, all that you have to work with is somebody needs, there's a person that needs to do all this not just the licensing.
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Yes, yes, just not the licensing for it as well, which is quite um.
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It's interesting now that you put it in that that light, wow, uh.
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What are some other differences?
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Are there any differences within the application?
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We talked about the licensing.
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That's a difference and, as I alluded to, I know one thing I'll throw in there is if you create extensions ptes for yourself, or if you have somebody do them for you, then you need to also pay for the objects, like they used to in the old days, I guess, but we all have been working with it for a long time.
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Someone new may not understand, but the extensions that you create are also required to pay for those objects as well, for those extensions that you use, correct?
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yes, that's right yeah, and if you're online it's not necessary to use those.
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So with that geez, we'll go there, we'll keep going, keep going.
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So what are some other differences that stand out?
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Is there anything?
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From the application point of view, the platform is a big one, or, like you said, the behind the scenes, the infrastructure is a big one.
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AI out of the box is one thing actually.
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All the AI feature the one of the box is one thing actually.
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All the AI features the one with the artificial intelligence that are in the online version, all of those ones are going with under the umbrella of the online version.
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Those ones are not available to be used on the on-premise.
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In the on-premise you still can, but you have to provide your own development and then connect to your own AI spots and so on.
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And, if I may add, it's not only about AI, it's basically any Azure services, because we can't talk about Business Central right now.
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Another big thing at Business Central when we talk about Business Central on-premise, it's kind of a standalone application.
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So we install it, we use it.
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Now, what different like why Business Central has become Business Central and was not Norwegian anymore?
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Because it's a different kind of application, because it's part of a bigger ecosystem.
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All the whole Azure infrastructure and we have easy integration, simple integrations, with lots of Azure services out of the box, practically when they're online it can be done.
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Yes, it can be done on-premise as well, but involves more of those qualified people who can set it up, who know how to do it, more penetration testing, more security concerns when they integrate on-premise network with Azure.
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So Business Central Online comes with many benefits of those Azure services.
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Okay, so Business Central Online, you can have access to Azure services.
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Dulee mentioned AI On-prem.
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You can have access to Azure services.
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Julie mentioned AI On-prem.
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You can have access to those services, but it requires someone to do some sort of development, whether you purchase something to do it or if you hire someone to do the development.
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What are some of the other features of the Azure services that are within Business Central that differentiate between on-prem and online?
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I can think of blob storage, file storage access that are within Business Central, that differentiate between on-prem and online.
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I can think of blob storage, file storage access, for example, if we want to use any storage online.
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Well, when it comes to integrations, especially when it's integrations, we can use all the rich tool tool set that azure can offer like uh, uh, as your, as you use um yeah, basically it is.
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I talk about ai, an agent.
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Uh, those are all services.
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This one.
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Some of them come out of the box natively and those are only available out of the box in the online version and not in the on-prem.
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But it's not that, because in the on-prem you cannot have it, but you just have to develop this your own and this is adding extra cost to the solution.
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This one it is already there and maintained by Microsoft so that it is covering correctly all the standard of development, deployment, security and so on and so forth.
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This is the good part of the online version.
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There are many, many goodies.
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Other kind of integration out of the box.
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It is with Teams, and even with Teams you can use it and you can even bundle this with Teams and even with Teams you can use it and you can even bundle this to Teams.
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Well, here in Italy, I think, also for the dimension of the companies, then we don't have that much integration with Microsoft Teams.
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But this is just another goodies, another things that has been added.
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And if you go to BC Learn and then you see what are the things that are available for the on-premise and for the online version, you have not a long list, but a medium list of the things that are not available in the on-premises, Even something also related to the connection between power platform the online version, born with native connection also with the Power Platform, or the Power thingy, with the Power BI and Power Apps and everything that you have with the power in front of it.
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It will be much more easier within the online version compared to the on-premises.
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And we need to turn CRM to the left.
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The R365 as well.
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Yeah, so a lot of that.
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Technical additional requirements, right?
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I think you need gateways installed locally in your application server or somewhere in your network and someone has to maintain that as well.
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Okay.
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So if someone's looking to use ai with business central, I know they keep at the microsoft keeps adding features and functionality, like now, as you mentioned, the agents, sales, sales order agent, payables, agent, and they have other co-pilot summary now they have.
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I'm still waiting for that autofill to work, but we'll see uh I'm hoping, I'm waiting, I keep trying, every, every, every release I try to see if I can get that to to fill something from outside, uh for an address or something to see.
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So if you're looking to have any integrations, it's not to say that you can't do it with on-premise, it's just a little bit more effort, uh, to connect to any of the azure services that we spoke about.
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And if, uh, you don't need it, I guess you can take that consideration off.
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Uh.
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But in my opinion, just to throw it in there, just to add something, thinking about that, you may limit yourself.
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You may not need some of those services, but you have to think about the future as well and what it would take to use some of those services.
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And so someone who's looking to use that natively, as you had mentioned, without having to hire or pay for someone to do the development which, again, you may have a reason for that, which is okay, just to keep that in mind to consideration as well.
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And with that, is there anything else that stands out for either one of you?
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The differences between them, with the on-prem version and online version.
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Well, we kind of.
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Yeah, go ahead.
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Oh, we mentioned a little like we touched upon the development side.
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We said that on-prem, for example, we need to pay for additional objects when we develop, customize anything which we don't need to do in SaaS.
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But there is other side of it.
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We are more flexible on-prem in what we can do, what we can access.
00:20:45.272 --> 00:20:49.672
We can access file system, for example, which we obviously can't do in SaaS.
00:20:49.672 --> 00:20:51.625
The file system doesn't exist.
00:20:52.141 --> 00:20:53.064
Want to store anything?
00:20:53.064 --> 00:20:59.229
Use blob storage, file storage, those Azure services, net control, net add-ins.
00:20:59.229 --> 00:21:01.867
We want something really custom.
00:21:01.867 --> 00:21:05.349
We need to full flexibility or a full power of NET.
00:21:05.349 --> 00:21:12.874
We can do it when we deploy on-prem in the cloud.
00:21:12.874 --> 00:21:25.269
Now we are very much limited and if we want to do something like this, we have to think about contributions into the system app, because only system app can access dotnet.
00:21:25.269 --> 00:21:38.180
Actually, I had this kind of problem when we needed integration by FTP, for example, until recent time, thanks to one recent open source contribution in Business Central.
00:21:38.180 --> 00:21:47.662
Now we will probably have FTP access or FTP services in Business Central system, but before previously we didn't have.
00:21:47.662 --> 00:21:52.107
So it was quite a problem to access an FTP server from Business Central.
00:21:55.182 --> 00:21:56.049
So that's a big point.
00:21:56.049 --> 00:22:06.585
So if you're working online, access to the local file system doesn't exist because it operates outside of your network in a sense, so you don't have access to it.
00:22:06.585 --> 00:22:27.564
So if you needed to do some FTP integrations, as you mentioned that's a common one that I see where there are some challenges with online you have to, as you mentioned, use some online storage and then, from that online storage, exchange the files, whereas on-prem you can work with a local file system and then be able to exchange the files through there.
00:22:27.564 --> 00:22:29.016
And you mentioned another one as well.
00:22:29.016 --> 00:22:31.656
You mentioned if you needed to use some.
00:22:31.656 --> 00:22:36.140
You mentioned use NET controls or any other custom controls or apps.
00:22:36.140 --> 00:22:36.882
What do you mean by that?
00:22:37.530 --> 00:22:39.276
Well, any kind of NET development.
00:22:39.276 --> 00:22:40.901
What was it?
00:22:40.901 --> 00:22:49.121
Well, I can give an example from our development perspective.
00:22:49.121 --> 00:23:01.800
I work for LS Retail and in the past, all the custom code, all the connections with hardware for example, hardware station in LS used to be a big NET control.
00:23:01.800 --> 00:23:04.758
Well, we communicate with hardware a lot.
00:23:04.758 --> 00:23:08.480
Well, there is no better way to do it than NET control.
00:23:08.480 --> 00:23:11.861
Now we don't have this option.
00:23:11.861 --> 00:23:15.461
The only thing we can do is online communication via APIs.