The type of Microsoft Dynamics CRM server your organization deploys and uses depends on the business requirements and available information technology infrastructure. There are three choices: on premise, Service Provider Hosted, and Microsoft Dynamics CRM Live.
1. On Premise
On Premise is software the organization licenses, installs, and maintains. The
organization must install the Microsoft Dynamics CRM server software on a
server (hardware) that is owned by the organization. This software runs “locally,” meaning it is typically installed at a central office or onsite. End user clients can connect to the server via a local network or, if configured to do so, through a virtual private network (VPN), or the Internet.
2. Service Provider
Service Provider is similar to on premise, except the organization selects a third party to install and host the Microsoft Dynamics CRM software and server hardware for them. The organization’s users then connect to the third party’s servers using the Internet to access the software.
3. Microsoft Dynamics CRM Live
Unlike the previous two options, Microsoft Dynamics CRM Live is not owned
by the organization, but rather, is rented by the organization on an ongoing basis.The organization’s users access the Microsoft Dynamics CRM software from the Internet. This option is similar to the service provider model, except the service provider in this case is Microsoft