Comparing deployment options 

The following table (taken from the Microsoft announcement on Feb 2017 located at https://community.dynamics.com/b/msftdynamicsblog/archive/2017/02/23/the-right-cloud-option-for-your-business) compares all three deployment options in terms of use cases, compute and data residency, data trustee, capabilities, and business intelligence options:

Cloud Scenario Full cloud Cloud and Edge Local business data
Use-case scenarios

Fully managed by Microsoft cloud service

Systems of Intelligence

Planned multi Instance federation

Elastic scale out

Cloud – MS managed, Edge – customer managed

Multiple local compute and storage workplaces for retail, shop floor and warehouse while utilizing cloud for scale, master data mgmt., data aggregation

Local data residency in addition to cloud

Disconnected data center

Local data residency

Capitalize HW investments

Single instance only

Compute and data residency Cloud Cloud and customer or partner infrastructure Customer or partner infrastructure
Data Trustee Microsoft Microsoft and Customer Customer
Application management

Fully managed by Microsoft

Customer access to ALM and telemetry via LCS

Cloud managed by Microsoft, Edge managed by customer or partner with Cloud-based ALM and telemetry via LCS Infrastructure managed by customer or partner with Cloud-based ALM and telemetry via LCS
Cloud capabilities

HA and DR included

Sandbox environments

Cloud-based intelligence

Data Federation and Master

Data Management

HA and DR included

sandbox environments

Cloud-based intelligence

Automated deployment intelligence as optional Cloud-based add-on
Intelligence Cloud-based Cloud-based Optional cloud add-on
Continuous updates and health monitoring Cloud-based, LCS Cloud-based, LCS Cloud-based, LCS
Planned availability Available Availability: Q4 CY2017 Availability: Q2 CY2017
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