Microsoft Dynamics 365 – What It Is and What It Isn't

Posted on: December 17, 2016 | By: Jim Bertler | Microsoft Dynamics GP

Microsoft officially released Dynamics 365 on November 1^st of this year.  As a long time Microsoft Dynamics Partner we were obviously interested to learn as much as we could as fast as we could.  So over the past six weeks we have gotten a much better understanding of the solution.  So here is some information on what Dynamics 365 Is and Isn’t.

First of all, you need to understand the different parts of Dynamics 365.  There is Dynamics 365 for Operations which is Microsoft Dynamics AX in the cloud.  So all of the great and robust functionality you are used to in Dynamics AX is available in the cloud.  There is a 20 user minimum for this solution which shouldn’t be an issue for larger clients.

The second piece is Microsoft Dynamics 365 for Sales and Customer Service.  This is Microsoft CRM Online simply rebranded to Dynamics 365.  So all of the Microsoft CRM functionality you were used to in Sales, Marketing and Customer Service are now Dynamics 365 for Sales and Customer Service.  Microsoft has also added a couple of other suites namely Dynamics 365 for Field Service and Professional Services Automation (Project Accounting) which were newer pieces to Microsoft CRM Online.  

The last piece is Dynamics 365 for Financials. This is the new solution aimed and the small and mid-market business segment. It was previously code named Project Madeira.  Dynamics 365 for Financials includes general functionality for financials as well as basic sales order/invoice processing, inventory control and purchase order processing.  Dynamics 365 for Financials is aimed at a business outgrowing QuickBooks, but not quite ready for a full ERP yet.

So not we understand all that (which is a lot, I know).  What is Dynamics 365 all about?

First, Dynamics 365 is not a brand new solution meant to replace the current Microsoft Dynamics GP, AX and NAV solutions.  The only new solution is Dynamics 365 for Financials which I mentioned above.

Dynamics 365 for Financials is not a Dynamics GP or Dynamics NAV replacement.  Microsoft has been clear that Dynamics 365 for Financials is targeted at companies outgrowing QuickBooks, but not quite ready for a Dynamics GP or NAV.  That may change a few years down the road, but right now it will definitely not replace GP or NAV. The functionality just isn’t there.

Dynamics 365 for Financials is an inexpensive tool for the small to medium business. We will have more on Dynamics 365 pricing in our next blog, but Dynamics 365 for Financials is only $40 per user per month.

Dynamics 365 is Microsoft’s first true cloud ERP offering.  Microsoft Dynamics GP and NAV can be done in the cloud, but you still often use remote desktop, terminal services or Citrix to access the solution which to me is not a true cloud application.

We will have more to follow in the coming weeks as there is much to cover with Dynamics 365, but that is probably enough for now.  For more information contact Logan Consulting your Chicago and Milwaukee based Microsoft Dynamics Partner and schedule a consultation.

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