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Dynamics 365 (on-premises) System Requirements

Microsoft Dynamics 365 for Finance and Operations, Enterprise edition, now supports running business processes in customer data centers with the on-premises deployment option. With this deployment option, application servers and the Microsoft SQL Server database will run in the customer’s data center, providing a local business data implementation. Customers and partners will utilize Microsoft Dynamics Lifecycle Services (LCS) to manage their on-premises deployments.


The on-premises deployment option uses Finance and Operations cloud components running on-premises using Microsoft Azure Server Service Fabric standalone clusters. Service Fabric is the next-generation Microsoft middleware platform for building and managing enterprise-class high-scale applications. Service Fabric standalone clusters can be deployed on any computer that is running Windows Server.

On-premises deployment defines two types of Service Fabric standalone clusters: clusters for production environments and clusters for sandbox environments. The following roles or node types are deployed into both types of clusters:

  • Application Object Servers (AOS) – Provides the ability to run the Finance and Operations application functionality in client, batch, and import/export scenarios.
  • Management Reporter (MR) – Provides financial reporting functionality.
  • SQL Server Reporting Services (SSRS) – Provides document reporting functionality.
  • Environment Orchestrator – Enables on-premises environment management from LCS.

Note: Retail Server is not supported in on-premises deployments at this time.

System requirements for on-premises environments

Based on the system configuration, data composition, and the applications and features that you decide to use, the actual hardware requirements will vary. Here are some of the factors that could affect the choice of appropriate hardware for Finance and Operations (on-premises):

  • The number of transactions per hour.
  • The number of concurrent users.
Minimum infrastructure requirements

Finance and Operations (on-premises) uses Microsoft Azure Service Fabric to host the AOS, Batch, Data management, Management reporter, and Environment orchestrator services. Microsoft SQL Server Reporting Services (SSRS) are not hosted in the Service Fabric cluster.

SQL Server must be set up in a high-availability HADRON setup that has at least two nodes for production use./

Processor and RAM requirements
Topology Role (node type) Recommended processor cores Recommended memory (GB)
Production AOS, Data management, Batch 8 24
Management Reporter 4 16
SQL Server Reporting Services 4 16
Orchestrator 4 16
Sandbox AOS, Data management, Batch 4 24
Management Reporter 4 16
SQL Server Reporting Services 4 16
Orchestrator 4 16
  • AOS – Finance and Operations (on-premises) will use a Server Message Block (SMB) 3.0 share to store unstructured data.
  • SQL – Viable options:
    • A highly available solid-state drive (SSD) setup.
    • A storage area network (SAN) optimized for OLTP throughputs.
    • High performance Direct-attached storage (DAS)
  • SQL and data management IOPS – The storage for both data management and SQL Server should have at least 2,000 input/output operations per second (IOPS).
  • Virtual machine IOPS – Each virtual machine should have at least 100 write IOPS.

Software requirements for all server computers

The following software must be present on a computer before any Finance and Operations (on-premises) components can be installed:

  • Microsoft .NET Framework 4.5.1 or higher
  • Service Fabric

Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like and with familiar Microsoft software, automating and streamlining financial, customer relationship, and supply chain processes in a way that helps you drive business success.

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