Environment types You can use the following environment types for your project: * Environment image (VHD) - These additional Tier-1 environments are hosted on-premises by using a virtual hard disk (VHD) that can be downloaded from Microsoft Dynamics Lifecycle Services (LCS). * Standard - This environment is included in the standard offer and is managed by Microsoft in a Microsoft subscription. Standard environments include the production environment and a Tier-2 Standard Acceptance Test environment. * Add-on - The add-on environments are in a Microsoft-managed subscription that the customer has purchased in addition to the standard offer. For example, an add-on environment might be an additional Tier-4 environment for performance testing. * Cloud-hosted - Cloud-hosted environments are additional environments that are managed by the customer or partner in a customer or partner Microsoft Azure subscription. A cloud-hosted environment can include a Tier-1 demo environment.