Self-Hosted Model, Hybrid Deployment Model, and Fully Managed Service comparison

Flexible Deployment Options

Every organisation is different. Some organisations prefer to host and manage their own Microsoft-based solutions, while others prefer a fully managed service. To accommodate different levels of technical capability, governance requirements, and Microsoft licensing arrangements, solutions can be deployed using one of three models.

All solutions are built using Microsoft’s low-code and AI ecosystem, including Microsoft 365, SharePoint, Power Platform, Dataverse, Copilot Studio, Power Automate, and Microsoft Copilot where appropriate.

Option 1: Client-Hosted Deployment

Overview

The solution is deployed directly into your Microsoft 365 tenant and remains entirely under your control. Your organisation owns the data, manages user access, and controls ongoing governance. Once deployed, the solution operates within your existing Microsoft ecosystem and follows your existing security, compliance, retention, and access control policies.

How It Works

  • The solution is developed and tested in a separate development environment.
  • Solution components are packaged into a deployable Microsoft Solution.
  • Your IT team creates the required environments and permissions.
  • The solution is imported into your Microsoft tenant.
  • Configuration and testing are completed.
  • Staff begin using the solution within your existing Microsoft environment.

Typical Components

  • Power Apps
  • Power Automate workflows
  • Dataverse tables
  • SharePoint lists and document libraries
  • Copilot Studio agents
  • Microsoft Forms
  • Planner integration
  • Teams integration
  • Power BI reporting

Data Security

All operational data remains within your Microsoft environment. Data is stored according to your organisation’s:

  • Microsoft 365 licensing
  • SharePoint configuration
  • Dataverse configuration
  • Microsoft Purview policies
  • Conditional Access policies
  • Data Loss Prevention policies
  • Retention policies

Your organisation remains the Data Controller and retains full ownership and control of all business data.

IT Team Requirements

Your IT team will typically be responsible for:

  • Environment creation
  • Licensing management
  • User access management
  • Security configuration
  • SharePoint administration
  • Dataverse administration
  • Ongoing monitoring
  • Backup and retention management

Best For:  Local authorities, charities, schools, multi-academy trusts, organisations with internal IT capability, and organisations requiring complete control over data and infrastructure.

Option 2: Managed Service Deployment

Overview

The solution is hosted within a dedicated managed Microsoft environment. Your users access the solution without needing to maintain the underlying technical infrastructure. This model reduces the burden on internal IT teams and may allow for faster implementation.

How It Works

  • The solution is deployed within a managed Microsoft environment.
  • User access is granted to your organisation.
  • Data is collected and processed within the managed environment.
  • Reporting and outputs are delivered to authorised users.
  • Maintenance, updates, and enhancements are managed centrally.

Typical Components

  • Power Apps
  • Dataverse
  • Copilot Studio
  • Power Automate
  • SharePoint
  • Microsoft Teams interfaces
  • Power BI dashboards

Data Security

Security and governance arrangements are agreed as part of implementation. Depending on the solution design:

  • Data may remain within the client’s Microsoft environment.
  • Data may be processed within a dedicated managed environment.
  • Secure access controls and role-based permissions are implemented.
  • Data sharing agreements and privacy assessments may be required.

Any deployment involving personal, sensitive, special category, education, HR, or safeguarding information would require a formal review of data protection responsibilities before implementation.

IT Team Requirements

Requirements are typically lower than Option 1. The client IT team may only need to:

  • Manage user accounts
  • Configure authentication
  • Approve integrations
  • Review compliance requirements
  • Approve security documentation

Best For: Smaller organisations, organisations with limited technical resources, pilot projects, proof of concept deployments, and rapid implementation requirements.

Option 3: Hybrid Deployment

Overview

A hybrid model combines local ownership with managed support. The solution runs primarily within the client’s Microsoft tenant, while development, maintenance, upgrades, monitoring, and specialist support are provided externally. This model often provides the best balance between security, ownership, and ongoing support.

How It Works

  • The solution is deployed into the client’s Microsoft tenant.
  • Operational data remains within the client’s environment.
  • Ongoing development is maintained within a controlled development environment.
  • Updates are tested before release.
  • New versions are deployed through an agreed change management process.

Typical Components

  • SharePoint
  • Dataverse
  • Power Apps
  • Power Automate
  • Copilot Studio
  • Teams integrations
  • Power BI

Data Security

The client retains ownership and control of operational data. Security remains aligned with the client’s:

  • Microsoft 365 tenant
  • SharePoint permissions
  • Dataverse security roles
  • Conditional Access configuration
  • Multi-factor authentication policies
  • Compliance framework

Development work uses segregated development and testing environments to minimise risks to live systems.

IT Team Requirements

The client IT team will typically:

  • Administer the Microsoft tenant
  • Manage security settings
  • Control permissions
  • Review changes before deployment
  • Approve integrations

External support may provide:

  • Solution maintenance
  • Feature development
  • Performance optimisation
  • Release management
  • Technical support
  • User training

Best For: Trusts, medium-sized charities, membership organisations, public sector organisations, and businesses requiring long-term support and continuous improvement.

Experience Guided Prompt: Demonstration Environment

COMING SOON

A fully fictional Microsoft 365 demonstration environment is available to showcase how solutions can work in practice. The demonstration environment contains:

  • Example SharePoint sites
  • Example Power Apps
  • Example Dataverse environments
  • Example Copilot Studio agents
  • Example workflows
  • Example dashboards
  • Example AI-enabled business processes

No real customer, pupil, employee, volunteer, or organisational data is used. This environment allows prospective clients to experience solutions in a realistic setting while maintaining complete separation from live operational systems. Demonstrations can be tailored to specific sectors, including education, charities, membership organisations, and business operations, helping organisations understand what is possible before committing to implementation.

What to find out more?

Contact the Guided Prompt team to discuss how we can help with you AI enabled organisational needs.