Microsoft CRM 2011 is a web application that can be deployed using the following three models. In the case of an on-premises model, CRM software is installed locally on a single or multiple servers. This deployment is completely controlled by us. By default, on-premises deployments are available only on an intranet. If we want to make them available in an extranet for our end users, then we need to set up IFD. There are two editions for Microsoft CRM 2011 on-premises.
In the case of the CRM online model, we have to purchase a subscription for CRM software access, which is hosted on Microsoft Servers. The hosted deployment is similar to CRM online, just in this case CRM Server is hosted by third-party vendors instead of Microsoft, so it will be installed in vendors' servers and they will configure IFD to make it available in the extranet.
You can download the Microsoft CRM 2011 implementation guide at http://www.microsoft.com/download/en/details.aspx?id=3621 to check configuration details for IFD.
The following table explains the difference between features supported by Microsoft CRM 2011 deployments:
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