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Dynamics 365 Vs Dynamics AX

Take a Big Leap with Modern and Smarter ERP Solution that Help Enterprises Grow!

Choosing the right ERP platform has always been a tricky challenge for enterprises worldwide. However, given the benefits, it is sensible for modern organizations to own a smart ERP system that restructures the ways businesses function.

With fast- evolving business landscape and aggressive modernization, getting the relevant insights into the business, competition, and customers is becoming more critical, than ever before, for business success. Therefore, enterprises across the globe are increasingly switching to intelligent ERP (short for Enterprise Resource Planning) solutions, primarily to optimize their financial performances and streamline business operations.

dynamics 365 vs dynamics ax

Here are the frequently asked questions that organizations seek answers while selecting an ERP solution:

  • Does my enterprise need an ERP?
  • What new features or applications my enterprise needs?
  • Does a cloud- based platform is more appropriate or is an on- premise system sufficient?
  • How safe is it to transfer data from an existing system?
  • What are the associated costs?
  • What level of training do users require?

This blog presents the most relevant comparative analysis for making a more educated decision while upgrading from MS Dynamics AX to MS Dynamics 365.

Dynamics AX Vs Dynamics 365, what’s the difference?

Before starting evaluating the Dynamics AX and Dynamics 365, let us have a quick peek into the primary features that keep these ultra- connected platforms in high demand:

Smarter Business Decisions

Available as a cloud, hybrid, and on- premises deployment options, ERP solutions bring the power, speed, and intelligence to enterprises, thus providing the core functionalities that organization need for smart business decisions and business gains.

Improved Operational Efficiencies

The innovative personal workspace concept aids business teams to prioritize, monitor, and complete the tasks efficiently, quickly, and within the set deadlines.

Enhanced User Experience

The touch enabled UI (short for User Interface) provides anytime, anywhere access from any device, allowing a seamless user experience to business managers and allowing them to complete assigned tasks on time.

Advanced Applications

Improve financial performance and smartly manage the supply chain with Azure based business applications, tightly unified with MS Office 365 and MS Power Platform.

Meaningful Business Insights

Embedded Cortana Intelligence and other smart capabilities, like Power BI (Business Intelligence) and Azure Machine Learning, deliver insightful and interactive business reports with rich visuals and interactive charts accessible on multiple devices.

Simplified Data Management

Pre- built Common Data Model (CDM) allows operation heads to analyze, manage, and connect organization- wide data seamlessly with other MS or third- party applications, delivering a unified view while maximizing output.

Are Dynamics AX and Dynamics 365 Similar?

Nearly, as both MS Dynamics AX and MS Dynamics 365 have embedded outstanding BI capabilities, offering an exceptional user experience, and enabling businesses to develop interactive dashboards through high- end reporting features.

MS Dynamics AXMajor SimilaritiesMS Dynamics 365

An improvised, touch- enabled UI for seamless performance across numerous devices and operating systems

User Experience

Personalized workspaces for altering needs with customized views and forms

Intuitive workspaces and real- time analytics supported by Azure based Machine Learning Services

Business Intelligence

Self- Service Analytics along with Meaningful business insights on customers and competitors

Specialized tools for complex and diverse business reporting on organization- wide functionalities

Reporting Features

Generate insightful reports and create interactive dashboards through the integration of Dynamics 365 data to an MS Azure SQL database

Then what Separates Dynamics 365 from Dynamics AX?

Although MS Dynamics AX and MS Dynamics 365 are quite similar in a variety of ways, there are still various overwhelming differences between the two platforms – from their deployment infrastructure to licensing options, integration capabilities, scalability, and other development features.

Below comparative chart lists the key differences between Dynamics AX and Dynamics 365:

MS Dynamics AXPrimary DifferencesMS Dynamics 365

Physical On- Premise Servers


Cloud Based, Hybrid, and On- Premise Deployments

Capital Expense – Yearly Subscription/ Fee


Flexible Operating Expenses (Pay- As- You- Go Model)

Specialized tools for complex and diverse business reporting on organization- wide functionalities

Reporting Features

Generate insightful reports and create interactive dashboards through the integration of Dynamics 365 data to an MS Azure SQL database

Software Based

User Interface

Browser Based

Minimal – Almost None


Multiple Devices (Mobile, Tablets, and more)

MS Office, CRM (short for Customer Relationship Management)


CRM, Power BI, MS Office 365, Cortana

Requires Manual Intervention


Updates Automatically

Medium to Large Enterprises


Global Enterprises


Additional Applications

Power Applications and Flow



Visual Studio (X++, XML)

Higher Information Technology (IT) Costs


Budget Friendly Maintenance

Support Available until October 2021

System Support

Not Known

Are You Ready for the Big Leap?

Both MS Dynamics AX and MS Dynamics 365 have built- in intelligent analytics capabilities, delivering the relevant functional insights required for business growth and excellence. Depending on the features and operational requirements, it critical that enterprises carefully analyze both the solutions, and choose the one that best fits their needs.

A Quick Walk Through to MS Dynamics 365

Dynamics 365 is available in the cloud, on-premises, or through hybrid deployment options that seamlessly adjust to fast altering business needs, comply with regulations, and ensure maximum RoI (short for Return on Investment).

Below is the Feature Loaded Platform Variants of MS Dynamics 365:

  • Dynamics 365 Finance: Automates global financial operations, monitors performance in real time, predicts future outcomes, and enables insightful business decisions to drive maximum growth.
  • Dynamics 365 Supply Chain Management: Improves business visibility across the global operations, delivers predictive insights, and enhances supply chain and manufacturing capabilities through exceptional features, including Internet of Things (IoT), Mixed Reality, and Artificial Intelligence (AI).
  • Dynamics 365 Commerce: Delivers excellent digital and in- store shopping experiences and simplifies overall store management functionalities.
  • Dynamics 365 Human Resources: Ensures people success, optimizes workforce expenses, and drives an agile, high-performance work culture.

Let’s Engage

Connect with a licensed MS Dynamics Vendor, like Dynamics Square (the most trusted MS Dynamics partner) to understand and learn the benefits of moving from Dynamics AX (on- premises deployment) to Dynamics 365 (cloud- based platform).

Take the next steps for your business

There’s never been a better time to update your systems and take advantage of all the benefits of cloud-based business applications. Learn more about the capabilities of Microsoft Dynamics 365.

Why Dynamics Square?

We bring together a synthesis of market leading technologies, seasoned consultants, and efficient processes to help clients design, implement, and manage enterprise software solutions for high performance organizations.


Years of Expertise

Our team of consultants bring together their many years of experience to new projects. Our consultants have numerous successful projects to their credit.

Flexible Engagement Model

Our services feature a remarkable degree of flexibility. We’ll be there when you need us to keep your project on schedule and ensure its success.

Subject Matter Experts

Our consultants are leading subject matter experts in their fields. They bring their solid credibility and impressive experience to every client’s project.

Ready to get going?

We’d love to show you what we can do for your company.