This Microsoft Dynamics CRM price quote wizard asks for your desired license and installation type. Then it asks you to choose a license model and installation type from a list like the one below:
Microsoft Dynamics CRM Online:
SAAS. You pay a monthly subscription fee per user for cloud based software hosted by Microsoft. The on-demand model has a five user minimum and includes maintenance fees in the cost of Dynamics CRM. The Online Microsoft Dynamics CRM price includes service, sales support and marketing functionality including email blasts and list tracking.
On Premise Microsoft Dynamics CRM:
You pay a one time fee to purchase a CRM server license and user licenses and have a Microsoft Certified Partner install the software on your own servers/hardware. Your company owns the software and pays for service an maintenance over time. The total cost of Microsoft CRM ownership for this option can often be lower for large implementations for 50 users or more.
There are also hybrid versions of Dynamics CRM that are hosted by Microsoft Partners. A hybrid version gives you all the customization potential of an on premis solution with all the benefits the SAAS model. Some of the Partners who write for this blog and the offer hybrid solutions are StreamSol Solutions and Power Objects. To read a more complete description of a hybrid CRM read this article from