Businesses looking to utilize
For one thing – if you need heavy configuration of Microsoft CRM, that could mean you need to have SQL scripts written to accomplish all that you want to. If that is the case, you are going to need to be on premise. For while you can configure Microsoft CRM Online, you will not be able to add a SQL script to the online servers.
Another issue is resetting your data. Microsoft CRM Online backs up your data automatically, and is far superior as far as keeping your data safe. But what would happen if you accidently delete your data, or for some other reason need to set to a restore point? With online, you will not be able to do it, with on-Premise, you will be able to do so, provided you back up your data daily (which most organizations do).
A final issue to consider is speed. While the CRM Online servers themselves should provide no problems for you – if your internal Internet is slow, than you may find that having CRM on your servers will be faster for you.
The bottom line is that Microsoft CRM gives you the choice of online or on-premise, and you get the same user experience and functionality either way. So whichever option is better for you, Microsoft CRM can help you.