Dynamics 365 Business Central ERP is the new version of the on-premise version of Dynamics NAV. Business Central on-premises is basically designed for those who need more control over the server and want to do more customizations. It is extremely flexible and can be molded into what you need rather than what you’re given. On-premise version of Dynamics 365 Business Central, it is up to you where your data should be placed on your own servers or at your hosting partner. When you buy a license for Business Central, it is entirely up to you whether you want to buy the solution or whether you want to rent it by paying a monthly license per. user from Microsoft.
Business Central Cloud is an online-based all-in-one business management application that connects your business. Business Central Cloud is designed for small and medium-sized companies who need an efficient ERP solution that is easy to use, but also has customization options without these necessarily have to be expensive special customizations.