Is Microsoft’s Dynamics 365 ERP the same as the older Dynamics AX solution? Get the details on how these platforms compare.

Microsoft Dynamics solutions help businesses manage operations and gain insights from data.

Dynamics AX focuses more on finance, supply chain, and manufacturing functions while Dynamics 365 delivers integrated apps for specific business needs.

Though separate products, dynamics ax support services teams can guide both.

A Closer Look at Dynamics AX Capabilities

I first started using Dynamics AX over 10 years ago at a small manufacturing company.

Compared to our old legacy system, AX delivered major improvements in supply chain visibility, production scheduling, and quality control.

Some key strengths we leveraged included:

  • Financial management – AX provides robust accounting, costing, budgeting, and financial reporting. This helped our controllers and accountants streamline period-end closing.
  • Supply chain management – From procurement to warehouse management, AX gives real-time visibility and coordination across the supply chain. Our inventory turnover improved by over 20% in the first year after switching to AX.
  • Manufacturing – Production planners use AX for forecasting, job scheduling, bills of materials, quality control, and managing the shop floor. It connects the front office to the plant.

For our needs, Dynamics AX was a good fit at the time for replacing our old system.

Understanding Dynamics 365 Capabilities

In 2016, Microsoft released Dynamics 365, a newer cloud-based platform for business applications. So how does Dynamics 365 compare to AX?

While AX delivers wide-ranging ERP functionality, Dynamics 365 takes a different approach:

Dynamics 365 is composed of purpose-built apps for areas like finance, supply chain, sales, marketing, and more. The apps integrate, but customers only pay for and use what they need.

For example, while AX includes CRM and marketing tools, a Dynamics 365 customer could use:

  • Dynamics 365 Finance for financials and supply chain
  • Dynamics 365 Commerce for retail management
  • Dynamics 365 Customer Service for call centers
  • Dynamics 365 Sales for sales force automation
  • Dynamics 365 Marketing for marketing campaigns

This flexible mix of integrated apps allows businesses to start small with Dynamics 365 and scale up over time. The cloud delivery also simplifies upgrades.

Many Dynamics AX support services teams are now focused on Dynamics 365, but can still maintain legacy AX implementations if needed.

Microsoft's Dynamics 365, dynamics ax support services,

Key Differences Summarized

While AX and Dynamics 365 both deliver business management functionality, some key differences stand out:

Microsoft Dynamics AX Microsoft Dynamics 365
On-premises ERP application Cloud-based apps
Broad functionality Focused apps by need
Licensed as a complete ERP Mix and match apps
Traditional upgrades Continuous cloud updates
dynamics ax support services dynamics ax support services

So in summary – Dynamics AX and Dynamics 365 are separate product lines serving different needs.

AX works for on-prem traditional ERP, while Dynamics 365 better enables cloud and hybrid deployments.

Hope this explanation helps clarify any confusion between AX and Dynamics 365! Let me know if you have any other questions.

Rate this post