Glossary

Dynamics 365

By Emil Björk · Microsoft business apps consultant, Gothenburg

Microsoft's family of cloud-based ERP and CRM business applications, launched in 2016.

Dynamics 365 is Microsoft's portfolio of cloud-based business applications launched in 2016, combining ERP and CRM into a modular suite. It includes apps for Sales, Customer Service, Field Service, Finance, Supply Chain Management, Business Central, Project Operations, Human Resources, Commerce, and Customer Insights, all sold per user per app. The apps share a foundation of Microsoft Dataverse, Microsoft Entra ID, and the Power Platform, and integrate natively with Microsoft 365. Dynamics 365 is the successor to Dynamics AX, NAV, GP, SL, and CRM, and is implemented primarily by Microsoft's partner network.

In practice, "Dynamics 365" names a portfolio rather than a single product, which is why the first real decision on any project is which specific app or apps apply — a small distributor needing an ERP wants Business Central, not "Dynamics 365" generically, while a large manufacturer with existing CRM needs might combine Finance and Supply Chain Management with Sales and Field Service. The apps split into two application families under one brand: the CRM-side apps run natively on Dataverse and share one data model, while Business Central and Finance/SCM each have their own separate database and application core, connected to the CRM side (when both are used) through integrations like dual-write rather than sharing a database outright.

Where confusion arises: because Dynamics 365 replaced five older product lines (AX, NAV, GP, SL, CRM) under one brand, buyers sometimes assume more architectural unity than actually exists — a Dynamics 365 licence bundle does not mean every app shares a database, a UI, or an upgrade cadence. Each app has its own release schedule, pricing, and implementation pattern even while marketed under the same family name.

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