In our previous article, we discussed the key features, benefits, and considerations common to Dynamics 365 products. Today, we'll address frequently asked questions about Dynamics 365 and explore approaches to ERP system modernization that are specifically relevant to Japanese companies operating in Thailand.

Frequently Asked Questions from Our Clients

Q1 : I've heard that internet connections in Thailand are unstable. Is it too early to implement cloud systems?

Until about ten years ago, it was common to hear that "internet and phone connections would fail when it rains" even in Bangkok. At that time, from our perspective as a solution provider, most companies indeed preferred on-premises ERP systems. Even for some time after Dynamics 365 was released, Microsoft only offered the on-premises version in Thailand.

However, around the same time that the cloud version was released in Thailand, we noticed a natural shift in user companies' preferences toward cloud-based solutions. We believe Microsoft likely timed their release based on improvements in Thailand's internet infrastructure and other market indicators showing readiness for cloud adoption.

In fact, currently more than 70% of our implementation projects are for the cloud version of Dynamics 365.

Q2 : Wouldn't the on-premises version with a one-time license purchase be more cost-effective than the cloud version's annual subscription fees?

Companies that have been using discontinued Dynamics products (on-premises), especially those with internal IT departments, tend to prefer continuing with on-premises systems. This could be seen as a simpler choice since they can manage their own on-premises servers and make a one-time initial investment for licenses (though annual software maintenance fees still apply).

However, particularly in Thailand, all user companies struggle with maintaining stable IT staffing. It's worth reconsidering whether continuing to rely on specific individuals for server operations and management might pose a business continuity risk. Additionally, one of the purposes of implementing ERP systems is to eliminate dependence on specific individuals. Cloud adoption can eliminate this dependence not only for applications but also for infrastructure management.

Q3 : Are there limitations on customization with cloud ERP systems?

Since Dynamics 365 uses the same development language for both on-premises and cloud versions, there are generally no specific customization restrictions for the cloud version. In our past version upgrade projects, we've migrated customizations from discontinued Dynamics products to Dynamics 365 while maintaining equivalent specifications.

However, regarding external system interfaces, certain programming functions aren't possible with cloud-based Dynamics 365, such as:

• Direct access to database tables from external systems
• Data import programs that access files on local servers

In these cases, new interface methods need to be considered using:

• Web APIs
• Power BI
• Cloud storage solutions

Summary

While cloud adoption represents a significant market trend in Thailand's ERP landscape, deployment decisions should be based on comprehensive organizational assessment. On-premises deployments remain viable for organizations with specific requirements or constraints. However, the evolving market dynamics and infrastructure improvements in Thailand increasingly support cloud-based implementations.

The key to successful implementation lies in thorough evaluation of organizational requirements, technical capabilities, and long-term strategic objectives. We recommend organizations conduct detailed assessments of their specific circumstances to determine the optimal deployment strategy.