On-premises deployment architecture 

The on-premises deployment option uses Finance and Operations components running on the premises, leveraging Service Fabric standalone clusters. The following diagram shows an example of the on-premises deployment architecture with the minimum recommended nodes for Dynamics 365 for Finance and Operations:

Let's again walk through the preceding image from left to right, and explore the various components, as follows:

  • Client devices: Similar to the cloud environment, various devices use a web browser or mobile application to access Dynamics 365 for Finance and Operations. Office 365 uses OData for communication.
  • Load balancer: The network load balancer is used for balancing the load between application nodes and redirecting the disaster recovery scenario.
  • Active Directory Federation Services (AD FS) and AD: AD FS is used along with the on-premises AD for authentication.
  • Application VMs: In on-premises deployment, all the core components of Finance and Operations are deployed using the Service Fabric standalone cluster. In addition to the regular application VMs, another set of VMs is needed for on-premises environment management from LCS.
  • Database layer: All databases are created on Microsoft SQL Server 2016 Standard edition or Enterprise edition. The Server Message Block (SMB) 3.0 storage cluster stores unstructured data on the Application Object Servers (AOS). An optional dedicated data store for reporting and analytics (EntityStore) is available to all customers on version 10.0 and later. 
This architecture diagram is just an example to understand the architecture; your actual deployment design will vary according to your resources and requirements.

Microsoft Dynamics 365 for Finance and Operations is built for the cloud first. Therefore, many features are not implemented or need to be configured differently to the on-premises deployments. For the latest details on the on-premises deployment option, refer to https://docs.microsoft.com/en-us/dynamics365/unified-operations/dev-itpro/deployment/on-premises-deployment-landing-page.
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