Microsoft Dynamics 365
| Company type | Product line |
|---|---|
| Industry | Enterprise software |
| Founded | 1981 |
| Founder | Microsoft |
| Headquarters | Redmond, Washington , United States |
Area served | Worldwide |
| Products | Dynamics GP, Dynamics NAV (Business Central), Dynamics SL, Dynamics AX (Finance and Operations), Dynamics 365 Sales, Customer Data Platform, Customer Service, Field Service, Remote Assist, Human Resources, Supply Chain Management, Intelligent Order Management, Commerce, Project Operations, Marketing, Artificial Intelligence, Mixed Reality |
| Owner | Microsoft |
| Website | dynamics |
Microsoft Dynamics 365 represents a collection of enterprise resource planning and sales management software solutions created by Microsoft. Its leading product, Dynamics GP, made its debut in 1981.
Applications
The Microsoft Dynamics 365 portfolio mainly consists of products acquired through various purchases: Dynamics GP (originally from Great Plains Software), Dynamics NAV (known as Navision, now evolved into Dynamics 365 Business Central), Dynamics SL (previously Solomon), and Dynamics AX (formerly Axapta, currently integrated into Dynamics 365 Finance and Operations). These offerings serve a wide range of customers, from small and medium enterprises to large corporations, supporting multiple languages, currencies, and legal entities. In recent years, Microsoft has focused on promoting and advancing these ERP solutions as software as a service (SaaS).
Microsoft Dynamics 365 encompasses more than 15 specialized applications tailored to distinct business areas:
- Microsoft Dynamics 365 Sales — Designed for Sales Leadership and Sales Operations
- Microsoft Dynamics 365 Customer Data Platform — Includes Customer Insights and Customer Voice
- Microsoft Dynamics 365 Customer Service — Targeted at Customer Service Management and Operations
- Microsoft Dynamics 365 Field Service — Geared towards Field Service Management and Operations
- Microsoft Dynamics 365 Remote Assist
- Microsoft Dynamics 365 Human Resources — Covers Talent Acquisition, Onboarding, and Core HR functions
- Microsoft Dynamics 365 Finance & Operations — For Finance and Operations Executives
- Microsoft Dynamics 365 Supply Chain Management — Manages Planning, Production, Inventory, Warehousing, and Transportation
- Microsoft Dynamics 365 Intelligent Order Management
- Microsoft Dynamics 365 Commerce
- Microsoft Dynamics 365 Project Operations
- Microsoft Dynamics 365 Marketing — Integrates with Adobe Marketing Cloud
- Microsoft Dynamics 365 Artificial Intelligence — Provides AI capabilities for Sales, Customer Service, and Market Analysis
- Microsoft Dynamics 365 Mixed Reality — Features Remote Assist, Layout, and Guides
- Microsoft Dynamics 365 Business Central — An ERP solution designed specifically for SMBs
Microsoft Dynamics 365 for Finance and Operations
Microsoft Dynamics 365 for Finance and Operations Enterprise Edition (previously known as Microsoft Dynamics AX) is an integrated ERP and CRM cloud-based solution aimed at medium to large organizations. It merges functionalities from Dynamics AX and Dynamics CRM with modules covering Financials and Operations, Sales Enterprise, Marketing, Customer Service, Field Service, and Project Service Automation. The platform offers tight integration with Office 365 and PowerBI, boosting analytics capabilities and operational efficiency.
Microsoft Dynamics AX
Microsoft Dynamics AX was Microsoft's ERP offering that was rebranded in 2018 as Microsoft Dynamics 365 for Finance and Operations after transitioning away from its traditional thick-client interface to a web-centric platform within the Dynamics 365 ecosystem. The Microsoft Development Center Copenhagen (MDCC) played a significant role in the development of Dynamics AX. The system featured nineteen fundamental modules addressing critical business processes:
Traditional core (from Axapta 2.5 onwards)
- General ledger – encompasses financial accounting functions including sales tax handling, multi-currency support, and management of fixed assets
- Bank management – processing of cash receipts and payments
- Customer relationship management (CRM) – administration of customer, supplier, and lead information
- Accounts receivable – managing order entry, shipping, and invoicing processes
- Accounts payable – handling purchase orders and inventory receipts
- Inventory management – control and valuation of stock
- Master planning (resources) – planning for purchasing and production activities
- Production – tracking manufacturing processes and managing bills of materials
Extended core
Introduced with AX 4.0 on a license-based model, these modules broadened the core capabilities available in AX 2009 (AX 5.0):
- Shop floor control
- Cost accounting
- Balanced scorecards
- Service management
- Expense management
- Payroll administration
- Environmental management
MorphX and X++
X++ is a development language that combines SQL query capabilities with a Java-like syntax, facilitating customization and application development within Dynamics AX.
Presence on the internet
Prior to Microsoft’s acquisition, Axapta-related content was hosted on , a proprietary web-based newsgroup that gathered a substantial community and extensive resources. Following its integration into Microsoft Business Solutions, this content was transferred to the Microsoft Business Solutions platform. The earliest recorded Axapta Technet discussion dates back to August 2000.
Events
Extreme Conferences: extreme365 serves as a major event for the Dynamics 365 Partner Community, now incorporating Dynamics AX, and includes an Executive Forum segment.
Personalization and predictive analytics
At the 2016 National Retail Federation Conference, Microsoft revealed a collaboration with Infinite Analytics, a Cambridge-based firm specializing in predictive analytics and personalization, enhancing Dynamics AX with advanced personalization features.
Microsoft Dynamics 365 Business Central
Microsoft Dynamics 365 Business Central (previously known as Microsoft Dynamics NAV) is a cloud-native ERP and CRM SaaS platform designed for small to medium-sized enterprises. It merges functionalities from Dynamics NAV and CRM across Financials and Operations, Sales, and Marketing modules. The solution offers seamless integration with Office 365 and Power BI.
- Microsoft Dynamics 365 Customer Engagement (formerly Microsoft CRM) comprises modules for Marketing, Sales, Customer Service, and Field Service. Its Customer Service component automates service workflows while providing performance insights through dashboards.*
Online and on-premises deployment
Dynamics 365 Business Central is offered both as a cloud-hosted (SaaS) service and as an on-premises product for manual installation and administration. Certain capabilities, such as integration with other Microsoft cloud services, are exclusive to the online version.
Localization
Business Central supports 24 officially certified localizations tailored to specific countries, supplemented by an additional 47 localizations developed by regional partners. The system adheres to major financial standards including GDPR, IAS/IFRS, and SOX, ensuring compliance with local regulatory requirements.
Editions and licensing
Business Central is available in two primary editions: Essentials, which includes modules such as Finance, Sales, Marketing, Purchasing, Inventory, Warehousing, and Project Management; and Premium, which extends functionality by incorporating Service Management and Manufacturing features.
Initially, with the release of NAV 2013, Microsoft implemented a concurrent user licensing approach that differentiated between full users and limited users—those with read-only access and constrained write privileges. Following the rebranding to Business Central, the licensing framework transitioned to a per-seat basis. Existing perpetual licenses from Dynamics NAV were converted using a 3x multiplier on concurrent seats. Customers possessing a Dynamics NAV Extended Pack license were migrated to the Premium edition.
Microsoft Dynamics 365 Sales
Microsoft Dynamics 365 Sales is a customer relationship management (CRM) solution developed by Microsoft. The platform’s current iteration is Dynamics 365, featuring updated branding and licensing structures since the Dynamics 2016 release. It integrates built-in softphone functionality to improve sales communication workflows and enhance customer interactions.
History
The Microsoft Dynamics brand represents a collection of Business Applications encompassing both enterprise resource planning (ERP) and CRM systems. Distribution occurs through a network of reselling partners who provide specialized services tailored to client needs. As part of the "Microsoft Business Solutions" portfolio, Dynamics products offer seamless integration with other Microsoft technologies such as SharePoint, Yammer, Office 365, Azure, and Outlook. The solution primarily targets industries including retail, services, manufacturing, financial services, and the public sector, catering to organizations ranging from small businesses to large enterprises.
Business Central
Business Central traces its origins to Dynamics NAV and originally Navision, acquired by Microsoft in 2002.
Navision was initially developed by PC&C A/S (Personal Computing and Consulting), established in Denmark in 1984. In 1985, PC&C launched its first accounting software, PCPlus, designed as a single-user system with fundamental accounting capabilities. The debut of Navision came in 1987 as a client/server accounting application supporting multiple concurrent users. Its growing success prompted the company to rename itself Navision Software A/S in 1995.
Until around 1990, Navision was primarily marketed within Denmark; thereafter, its distribution expanded throughout Europe—including Germany and the United Kingdom—beginning with version 3. The first version compatible with Windows 95 was introduced in 1995.
In 2000, Navision Software A/S merged with Danish company Damgaard A/S (established in 1983), forming NavisionDamgaard A/S. The combined entity rebranded as "Navision A/S" in 2001.
Microsoft acquired Navision A/S on July 11, 2002, merging it with its earlier acquisition of Great Plains Software. This consolidation formed part of Microsoft Business Solutions alongside Microsoft CRM.
By 2003, Microsoft had initially planned a new ERP project (codenamed Project Green) but ultimately decided to continue advancing all existing ERP lines—Dynamics AX, Dynamics NAV, Dynamics GP, and Dynamics SL—while standardizing them under a role-based user interface. Enhancements included SQL-driven reporting, integration with SharePoint portals, mobile client support, and tighter Office suite connectivity.
Dynamics NAV
In September 2005, Microsoft renamed Navision to Microsoft Dynamics NAV.
December 2008 marked the launch of Dynamics NAV 2009, which supported both the traditional "classic" client and introduced a new .NET Framework-based three-tier RoleTailored Client (RTC).
By the first quarter of 2014, Dynamics NAV had amassed a customer base exceeding 102,000 active users.
In 2016, Microsoft unveiled Dynamics 365, consolidating its ERP and CRM offerings into a unified cloud-based platform. Within this framework, the next iteration of NAV was internally referred to as "Madeira".
Dynamics 365 Business Central
September 2017 brought the announcement of the codename Tenerife for the forthcoming generation of Dynamics NAV, supplanting the earlier codename Madeira. Business Central was officially launched on April 2, 2018, with a commitment to deliver updates twice yearly.
This release introduced the AL language for development purposes, replacing the earlier C/AL coding environment from Dynamics NAV, thereby improving customization and integration potential.
Dynamics SL, Dynamics GP, Dynamics C5
Older Dynamics solutions such as SL, GP, and C5 provide upgrade paths toward Business Central. Since 2018, these products have seen minimal major updates. Their later editions incorporated the Role-Tailored Client interface from Dynamics NAV, easing migration to Business Central.
| Product | Last major release | Support lifecycle end date |
|---|---|---|
| Dynamics SL | 2018 | July 11, 2028 |
| Dynamics GP | 2018 R4 (Nov 2021) | January 11, 2028 |
| Dynamics C5 | 2016 | April 14, 2026 |
History of Dynamics C5
Originating in Denmark as the successor to the DOS-based Concorde C4, Dynamics C5 was developed by Damgaard Data. Following a merger with Navision in 2001 and subsequent acquisition by Microsoft in 2002, Navision C5 was rebranded as Microsoft Dynamics C5. Currently, it supports more than 70,000 installations within Denmark.
History of Dynamics SL
Solomon Software began in Findlay, Ohio in 1980 when founders Gary Harpst, Jack Ridge, and Vernon Strong established TLB, Inc. ("The Lord's Business") to operate under Christian values. This company was later renamed Solomon Software before becoming Microsoft Dynamics SL.
History of Dynamics GP
Developed initially by Great Plains Software under Doug Burgum in Fargo, North Dakota, Dynamics GP debuted its first version in February 1993. It was among the earliest multi-user accounting software designed for a 32-bit Windows environment. Microsoft acquired Great Plains Software in April 2001.
Dynamics GP is constructed using the Dexterity programming language. Earlier versions supported multiple database platforms including Microsoft SQL Server, Pervasive PSQL, Btrieve, and C-tree; however, versions released after Microsoft's acquisition exclusively utilize Microsoft SQL Server. Microsoft intends to cease updates for Dynamics GP after September 2029 but will continue providing security patches until April 2031.
Finance
Microsoft Dynamics 365 Finance is an enterprise resource planning (ERP) solution from Microsoft aimed at medium to large enterprises. As part of the broader Dynamics 365 portfolio, it debuted in November 2016 under the name Dynamics 365 for Operations before being renamed Dynamics 365 for Finance and Operations in July 2017. Separately, Microsoft rebranded its small business offering as Finance and Operations, Business Edition, which operates on distinct platforms. Key historical points include:
- 1998 – Axapta was introduced by IBM alongside Danish firm Damgaard Data in both Denmark and the United States.
- 2000 – Damgaard Data merged with Navision Software A/S to form NavisionDamgaard (later Navision A/S). Axapta version 2.5 was released; IBM returned rights to Damgaard Data.
- 2002 – Microsoft acquired Navision A/S and launched Axapta version 3.0.
- 2006 – Release of Microsoft Dynamics AX 4.0.
- 2008 – Launch of Microsoft Dynamics AX 2009.
- 2011 – Global rollout of Microsoft Dynamics AX 2012 supporting over thirty countries and twenty-five languages; adopted by more than twenty thousand organizations worldwide.
- 2016 – Introduction of Microsoft Dynamics AX 7 featuring an HTML5 browser client and cloud capabilities; soon rebranded as Dynamics 365 for Operations.
- 2017 – Renamed to Dynamics 365 for Finance and Operations, Enterprise Edition (distinct from Business Edition derived from earlier Dynamics NAV).
- 2018 – Further rebranding to Dynamics 365 for Finance and Operations; Human Resources functionality separated as Dynamics 365 for Talent (currently known as Dynamics 365 Human Resources).
- 2020 – Division into two distinct products:
- Dynamics 365 Finance
- Dynamics 365 Supply Chain Management
- 2023 – Reintegration of Dynamics 365 Human Resources into the suite.
This progression highlights Microsoft's strategic emphasis on cloud-centric ERP solutions tailored for enterprise clients with a focus on scalability and seamless integration across financial and operational domains.
Sales
Microsoft Dynamics 365 Sales has undergone numerous iterations over time.
Microsoft CRM 1.2
Released on December 8, 2003, Microsoft CRM 1.2 experienced limited adoption across industries. While it did not support the creation of custom entities, it offered a software development kit (SDK) that utilized SOAP and XML endpoints for integration purposes.
Microsoft Dynamics CRM 3.0
Debuting on December 5, 2005, this edition marked the product's official entry into the Dynamics suite. Notable enhancements included simplified customization options, a transition from Crystal Reports to Microsoft SQL Reporting Services, and compatibility with Windows Vista and Outlook 2007. Subsequent updates introduced mobile access capabilities and integration with Siebel Systems. This release was the first to achieve significant customer uptake, supporting custom entities and one-to-many relationship structures.
Microsoft Dynamics CRM 4.0
Launched in December 2007, Dynamics CRM 4.0 brought multi-tenancy support, improved security for reporting, data import functionality, direct mail merge features, and compatibility with Windows Server 2008 and SQL Server 2008. It also introduced CRM Online, a cloud-hosted solution managed by Microsoft, allowing independent software vendors (ISVs) to offer hosted services to their clients.
By July 2009, this version had surpassed one million users, demonstrating robust market penetration. It incorporated support for many-to-many relationships and replaced the "Relations" feature with "Connections." The user interface adopted the Office 2007 design language, featuring blue tones and rounded buttons.
Microsoft Dynamics CRM 2011
Dynamics CRM 2011 entered open Beta in February 2010, reached Release Candidate status in December 2010, and was officially launched in February 2011 (build 5.0.9688.583). Update Rollup 12 extended full browser compatibility to Internet Explorer, Chrome, and Firefox. Despite high expectations for this update, it caused difficulties for customers with unsupported customizations, leading Microsoft to release troubleshooting tools.
Microsoft Dynamics CRM 2013
Released to a select beta audience on July 28, 2013, Dynamics CRM 2013 Online became available for new registrations in October and was officially launched in November 2013 (build 6.0.0000.0809).
Microsoft Dynamics CRM 2015
Announced on September 16, 2014, Microsoft Dynamics CRM 2015 along with updates to its Online and Marketing services were made broadly available in the fourth quarter of 2014. A preview guide accompanied this launch. On November 30, 2014, Microsoft confirmed the general availability of both CRM 2015 and the updated Marketing service. In January 2015, a FedRAMP-authorized CRM Cloud service tailored for the US Government was introduced.
Microsoft Dynamics CRM 2016
Officially released on November 30, 2015, Dynamics CRM 2016 (versions 8.0 through 8.2) delivered enhanced intelligence features, improved mobility options, and upgraded service capabilities aimed at boosting productivity. With version 8.2 came the rebranding of the product to Dynamics 365. Subsequently, in June 2016, Microsoft launched the Business Card Reader app for Dynamics CRM followed by the Call Tracker app in 2017.
Microsoft Dynamics 365 Sales
Introduced on November 1, 2016, Microsoft Dynamics 365 replaced Dynamics CRM by merging Microsoft's CRM and ERP solutions, including the integration of Dynamics AX. It also accommodates add-ons like softphone dialer applications.
The on-premises Dynamics 365 Customer Engagement suite comprises the following modules:
- Dynamics 365 for Sales
- Dynamics 365 for Customer Service
- Dynamics 365 for Marketing
- Dynamics 365 for Field Service
- Dynamics 365 for Project Service Automation
For ERP functionalities such as accounting, invoicing, order processing, and production management, Dynamics 365 for Finance and Operations provides comprehensive support.
Version 9.0.0.1 brought in significant enhancements including Virtual Entities, Auto Numbering Attributes, and Multi-Select Option Sets.
October 2018 Release
This update delivered improvements across sales, marketing, customer service, and recruitment functions.
April 2019 Release
Launched on April 5, 2019, this version introduced a user interface for embedding PowerApps canvas applications, re-enabled tab navigation, and removed the Xrm.Page.data API.
February 2020 Release
Announced on February 19, 2020, it expanded Microsoft’s Customer Insights with new integrations of first- and third-party data sources, added advanced sales forecasting capabilities, debuted the Dynamics 365 Sales Engagement Center, and rolled out Dynamics 365 Project Operations.
October 2021 Update (Wave 1)
Released October 5, 2019, this update enhanced bank reconciliation reporting by adding preview posting features, separate numbering sequences, and customizable document numbers within the payment reconciliation journal. It also introduced the Correct Dimensions functionality and integrated Microsoft Dynamics 365 with Microsoft Teams search, Microsoft Word, and Microsoft Universal Print technology.
Support and End of Life
| Version | Release Date | End of Mainstream Support | End of Extended Support |
|---|---|---|---|
| Microsoft CRM 1.2 | October 31, 2003 | January 9, 2007 | Template:N/A |
| Microsoft Dynamics CRM 3.0 | December 1, 2005 | April 12, 2011 | April 12, 2016 |
| Microsoft Dynamics CRM 4.0 | February 29, 2008 | April 9, 2013 | April 10, 2018 |
| Microsoft Dynamics CRM 2011 | May 18, 2011 | July 12, 2016 | July 13, 2021 |
| Microsoft Dynamics CRM 2013 | January 12, 2014 | January 8, 2019 | January 9, 2024 |
| Microsoft Dynamics CRM 2015 | February 11, 2015 | January 14, 2020 | January 14, 2025 |
| Microsoft Dynamics CRM 2016 | November 30, 2015 | January 12, 2021 | January 13, 2026 |
| Microsoft Dynamics 365 | November 1, 2016 | colspan="2" Template:N/A |
Related offerings
Microsoft Dynamics encompasses a variety of complementary solutions:
- Microsoft Dynamics Management Reporter, a tool designed for financial reporting and analysis, capable of generating income statements, balance sheets, cash flow reports, and other financial documents. These reports are securely stored within a centralized Report Library, with access controlled through Windows Authentication and SQL Server.
- Microsoft Dynamics for Retail, previously known as Dynamics RMS, QuickSell 2000, and Dynamics POS.
- Microsoft Dynamics for Marketing, formerly referred to as MDM and MarketingPilot 2012.
- Microsoft Dynamics Social Listening, which was earlier called Netbreeze 2013.
- Power Automate, previously Microsoft Flow, a platform for automating business workflows.
- Power Automate Desktop, software specializing in robotic process automation for graphical user interface (GUI) tasks, acquired in May 2020.
- Parature, a customer service and engagement platform designed to support various service channels, acquired in January 2014.
Additionally, Microsoft offers Sure Step, a structured implementation framework tailored for Microsoft Dynamics partners.
In July 2018, the company launched Dynamics 365 AI tailored for sales applications.
See also
- Microsoft Azure
- Microsoft Dataverse
- Microsoft Office
- Microsoft Power Platform
- List of Microsoft software