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I'm working on Dynamics since about 1 year, and I'm working on "on premise" environments, and I don't know very much about online solutions.

I should now integrate 2 systems through webservice, and one of them involves Microsoft Dynamics CRM Online 2016.

What I'm trying to accomplish is that the custom systems sends data to the CRM Online through webservice.

I've read I just can't deploy my webservice and my logic as I've always done (separate web application that receives a Json or a XML through web services and works on CRM entities through the SDK).

So, do I need a separate machine to receive the XML and working on the CRM through the SDK?

In some posts I learn a little about Azure, but I don't know if it could be a nice solution. Should I get a virtual machine and then install IIS? Will my web app be visible by the custom system and able to work on the CRM online? Do I need a different service?

Thanks in advance and sorry for the confusion, it's the first time I'm trying to make CRM Online communicate with the outside.

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So if I understand correctly your approach is 'custom system <=> your WS <=> CRM Online 2016

I've read I just can't deploy my webservice and my logic as I've always done (separate web application that receives a Json or a XML through web services and works on CRM entities through the SDK).

In CRM Online you don't have access to machine that CRM stands on so no folders, no inetmgr, no deploy.

So, do I need a separate machine to receive the XML and working on the CRM through the SDK?

Yes.

Should I get a virtual machine and then install IIS?

It doesn't have to be new virtual machine. It could be for example machine that custom system stands on ofc. if it can be configured to have access to the internet.

Will my web app be visible by the custom system and able to work on the CRM online?

It is matter of configuration of NAT, firewall etc.

Do I need a different service?

What service do you reffer here?