It’s official – AX 7 will support deployment on-premises

Make sure you familiarize yourself with new (upcoming) deployment options for Dynamics 365 for Operations. In short, you’ll be able to run it outside cloud (e.g. on your own hardware) and then either synchronize data to cloud or keep them locally. Of course, not having data in cloud means missing some cloud features such as Power BI. There will be also a change in licensing, because the usual subscription licenses include Azure resources, which you won’t need if you keep everything locally.

This is a huge news for quite a few customers who couldn’t go to cloud because of the distance from nearest Azure data centers, local law or company policies.