I found this article called Nine Benefits of Hosting Dynamics and I have pasted the main benefits of the article below. The original article I think was on a Dynamics GP.
This is an interesting article because although Microsoft is pushing CRM Online in a big way, I usually only hear that it’s good because Microsoft are advertising it and because the subscription costs at the moment are quite cheap (combined with Microsoft offering a good deal to move from Salesforce).
This is a good list of benefits, I think the most important benefit is you don’t have a large initial outlay when you have to buy servers and software if you had an on premise installation. Also you would have to support that server yourself where as with CRM online you get free support, free upgrades and the costs split over many months. Another benefit is I think Microsoft offers some kind of guarantee to basically ensure your CRM access be interrupted.
here is the article
Nine Benefits of Hosting Dynamics
These are the benefits that our customers generally experience when they decide to host their Dynamics systems online:
24/7 support – Basic IT support to ensure that users can always have access to the system.
Minimize/eliminate upfront capital costs – This frees up working capital to better serve your customers, e.g. holding higher levels of inventory to minimize stock-outs, having the ability to extend more credit.
Minimize/eliminate additional IT resources – IT resources can be focused on systems and tasks that increase business value and provide a competitive advantage.
Management of the OS, Service Packs, and security – Systems are maintained at the highest level of performance and security available.
Managed backups (daily, weekly, monthly & annually) – Ensures that your critical business data is being regularly backed up, the backup/restore mechanisms are routinely tested, and reasonable and practical disaster recovery plans are in place to ensure business continuity.
No additional consulting costs for Service Packs, upgrades, hot fixes and enhancement releases – Users always have access to the latest software and systems are kept up to date with no additional impact on operating budgets.
Applications accessible to employees at multiple locations (on the road or from home) – Remote and secure connectivity for users from wherever they want to use the system.
Predictable monthly IT Costs – No surprises.
Quick deployment – Quicker time to value and ROI.