The most appropriate delivery model for each business process is dependent on the unique characteristics of each company and its industry. But whatever a company's situation, Microsoft is committed to providing the greatest amount of choice in software delivery. Ultimately, Microsoft believes every company will want to distribute its processes across three delivery models:
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On-premise. Companies host their Microsoft Dynamics software at their own location, on their own servers, just as they would with any other business application. On-premise software deployments offer maximum opportunity for integration with other IT systems. Oftentimes, companies choose on-premise deployments when their IT organization has established domain expertise for that process or technology and when their business processes involve sensitive data or requirements or differentiate them from the competition.
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Partner-hosted. Microsoft works with ISV and system integrator partners all over the world, providing customers with industry-expert advice from a local company. These partners offer hosted Microsoft Dynamics applications in their area of expertise—these solutions are often ideal for specific vertical processes, or highly customized processes with precise requirements.
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Microsoft-hosted. Designed to provide customers with the latest technology and lowest possible total-cost-of-ownership, Microsoft-hosted service offerings will continue to develop and play a key role in the company's software-plus-services approach.