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Development, Testing and Production Environments for CRM Implementation

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I am from a Salesforce background and currently learning Dynamics 2013 Online, so please bear my naivety.

In Salesforce, there is an option to have sandboxes for development, configuration and testing environments before moving whole solution (configuration, customizations) to Production environment at the time of project go-live (for details: please see http://www.salesforce.com/platform/cloud-infrastructure/sandbox.jsp). I am wondering how to do this in Dynamics 2013 Online. On googling, I have found one option is to implement everything on-premise and then move this to Cloud at the time of Production. But is there a better way? 

Appreciate your help. Thanks. 


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