In the context of Dynamics 365, an Instance is an isolated environment with data segregated from other instances, but under the same tenant. There are two main types of Instance –

  • Production Instance – a customer’s live environment, where the a company’s day-to-day processing occurs.
  • Sandbox Instance – an instance that is designed to be used for testing or training. These are ideal for trialling new functionality or customisation prior to go-live, to ensure business continuity