Some organizations do not want to store their data on infrastructure they don't fully control. Local business data deployment is a choice for them. Local business data deployment is a deployment model whereby the key components of Dynamics 365 for Finance and Operations are deployed on the customer's local data center. This model is suitable for customers who are not ready for the cloud journey due to regulatory reasons or their existing data center investments.

As explained earlier in this chapter, local business data deployment still uses LCS for deployment and management of Dynamics 365 for Finance and Operations. However, there is no business data processing outside the customer's or their partner's data center. In this model, the customer/partner is responsible for managing the infrastructure and disaster recovery. Power BI or cloud intelligence is optional for local business data, as these options need business data in the cloud. Customers will have an option to enable it by allowing the business data to be replicated in the cloud. The following diagram represents a local business data deployment model:

As shown in the preceding diagram, local business data means that the finance and operations application deployment is limited to the customer data center. LCS in the cloud are still used for deployment and management, where the configuration, customization, and telemetry data is synchronized to the cloud to enable management and diagnostics.

The following are the key highlights of local business data deployment:

• Disconnected data centers
• Local data residency
• Capitalize hardware investments