When operating Microsoft Dynamics NAV, companies have a choice between running it on-premise or in the cloud. Within the context of the cloud, many businesses would like to run it either on a public service or some hybrid combination which allows for some software and services on premise. There is also the option of the private cloud, which allows companies to run cloud-based operations on a private server. For many, this means using a hosted service, either through a third party or through Microsoft Azure Server. However, with proper infrastructure, a private cloud can be built on-site as well, which can save a lot of trouble in the long run. This option offers some unique advantages, though there are some challenges a company has to face as well.

A matter of security
When it comes to protecting data, the private cloud is often superior to the public in terms of security. The main advantage comes from the fact that no business has access to the servers other than the company that uses them, as noted by IT Pro Portal. Building a private cloud on-site takes things a step further by eliminating the middleman in the form of the cloud service provider or data center.

Another factor is flexibility. A private cloud service is far more agile in adjusting to specific demands that the company needs. For example, adding new NAV modules such as timekeeping software may require some adjustments to the software, especially if a partner other than Microsoft itself makes it. Utilizing the public cloud often means having to work with the provider to make sure the software is installed properly. Even in a private hosted setting, that is usually the case. When a company builds the private cloud itself, though, it has far greater control over where software gets moved to and from on each server. That can save a lot of headaches, especially when there is need to update certain software.

Great if it works
One advantage with building the private cloud on site is to have a more reliable system on hand. This includes network backbones that have high levels of tolerance for any workload strain. However, this only works if the company has invested in measures that protect keep the servers running effectively at all times. ERP Software Blog notes that this extends far beyond data backups. For example, in terms of redundancy, there needs to be multiple Internet connections running through the servers and backup electrical systems in case of a power outage. The rooms they’re located in should be secure, have proper climate and temperature settings, and has safeguards from staffers causing inadvertent damage from spillage or tripping.

In addition, there are other challenges to consider. The level of data security in place is one of them. Companies have to perform extensive amounts of work and install a lot of software just to get things to function properly. The systems should also be tested in event of a hack. All of these add to the cost of building a private cloud, which is often the most significant obstacle to overcome.

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