Cloud-hosted environment is a tool that you can use to deploy Microsoft Dynamics 365 for Finance and Operations, Enterprise edition environments on Microsoft Azure.

When you use cloud-hosted environments, you must select the type of Microsoft Dynamics AX environment to deploy, such as a demo, developer/test, or production environment. The following is from the LCS cloud-hosted environment screen, which depicts the environments and their types:

Based on your selection, the cloud-hosted environments tool provisions the appropriate number of Virtual Machines (VMs) in Azure.

These VMs have the components (and all their prerequisites) of Microsoft Dynamics 365 for Finance and Operations, Enterprise edition already installed on them.

You can get details of your deployment status, URL for Dynamics 365 for Finance and Operations, Enterprise edition, URL for retail Cloud POS, and local VM credentials along with domain accounts and system diagnostic information.