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Microsoft Dynamics AX vs Dynamics 365

Posted by Alanna Friedberg on Feb 28, 2023 10:00:00 AM

Microsoft-Dynamics-AX-vs-Dynamics-365ERP software serves as a centralized location for companies. Companies use them to offer a unified way for various departments to tap into information needed for different job functions. With data evolving into one of the most valuable assets a company can hold, ERP systems offer an additional level of security to protect it against unauthorized users. Microsoft offers two ERP solutions widely in use, Microsoft Dynamics AX and Dynamics 365. Let’s look at what advantages both bring to the table.  

What is Microsoft Dynamics AX?

Microsoft Dynamics AX is a powerful ERP platform designed to help companies run backend processes efficiently and run routine tasks. Dynamics AX provides business functionality to support different organizational areas, including the following:

  • Finance
  • Business Intelligence
  • E-Commerce
  • Inventory Management
  • Service Management,
  • Human Resources
  • Retail
  • Project Management

Many small companies find that Dynamics AX covers everything they need from an ERP. It allows them to expand their ability to automate mundane tasks, provide better customer service, set up advanced analytics, and unify their financial systems. Below are some other benefits offered by Dynamics AX.

1. Improved Customer Satisfaction

Dynamics AX helps companies boost their logistics management capabilities and get products to customers faster. Analytical features are available to help businesses spot problems that might affect customers and resolve those issues quickly.

2. Lower Operational Costs

The automation provided by Dynamics AX helps reduce operational costs because you don’t need as many human resources to execute manual tasks. You can speed up supply chain processes and reduce human errors that hamper efficiency.

3. Better Visibility

It’s easier to see what’s happening with your assets and where you can improve business processes. Dynamics AX collects business data and sets up predictive analysis to provide insights into business performance within every aspect of operations.

What is Microsoft Dynamics 365?

While Dynamix AX offers a lot as far as an ERP, it’s mainly an on-premises solution. That’s a significant impediment for companies looking to remain at the cutting edge of business technology. The cloud represents the now and the future, which forms the bases of Microsoft Dynamics 365 business applications.

Even with recent redesigns to Dynamics AX, customers looking for a more advanced ERP typically go with Dynamics 365. It offers the ability to set up customized workspaces to fit the needs of different business users. They can create forms with forms and fields that reflect their work processes.

Dynamics 365 also offers more advanced analytics capabilities, the ability to set up more complex reporting, and lets users design dashboards powered by Microsoft Power BI and Azure. Dynamics 365 scales with your company as it grows and lets developers use other Microsoft solutions like Visual Studio for development.

Let’s look at what organizations gain by making Dynamics 365 their ERP solution.

1. Better Efficiency

You can eliminate manual processes thanks to the AI capabilities within the automation. You can set up more intelligent workflows that improve collaboration between different business areas. Another benefit of using Dynamics 365 is that you can access your ERP, customer relationship management (CRM), and Office applications from one platform versus having to bounce from one platform to another.

2. Reduced IT Costs

There’s no need to pay for additional server hardware to support Dynamics 365. You pay a subscription that only includes services required for your company. That means you’re not spending money on unnecessary licenses and staff needed to support the infrastructure for the ERP. You can put those savings to use in other areas of your company.

3. Customizable

When comparing Microsoft Dynamics AX vs. 365, one reason to go with Dynamics is the ability to customize your business platform. With the help of a Microsoft Certified partner, you can select the services and applications required to support your business. If your future needs change, you can expand the platform’s capabilities by choosing additional options to add to your subscription.  

Microsoft AX vs. Dynamics 365: Which One Should You Choose?

You might see a lot of similarities when looking at Microsoft Dynamics 365 vs. AX. Both ERP solutions offer functionality that benefits your business operations. Microsoft designed the Dynamics suite of applications to embrace cloud technology. Organizations can incorporate other Microsoft products into the Dynamics 365 ERP, including Office 365 and SharePoint.

Setting up an on-premises instance of Microsoft AX means immediately investing in supporting hardware and servers. Beyond that, you have to think about the support staff needed to keep it running smoothly and deal with issues as they arise, and the costs associated with:

  • Software monitoring
  • Cybersecurity software
  • Warehouse space for servers
  • Maintaining running equipment 24/7
  • Storage upgrades
  • Preventative maintenance

None of the above is necessary when you use Dynamics 365 for your ERP solution. All of this comes with your subscription. There’s no need for IT personnel to worry about performing software upgrades or checking the status of servers constantly. Microsoft assumes responsibility for the security and storage of your information through your subscription.

AX also relies on the use of Application Layers. While they make the platform more powerful, upgrading them can get complicated quickly. Your IT team must manually set up service packs, hotfixes, and feature packs. Deployments are simpler through Dynamics 365. Most of the processes run via automation, while AX requires installing and configuring software on different machines.

How A Microsoft Partner Can Help

It helps to have a Microsoft Dynamics Partner who understands the pros and cons of Microsoft Dynamics AX vs. 365. Internet eBusiness Solutions (iES) prides itself on the deep pool of knowledge held by its technical experts. We have experience helping companies set up new ERP instances and migrate over from a legacy ERP platform.

Find out how you can benefit from partnering with IES by contacting us for more information.Complete Guide to Hiring a Dynamics 365 Managed Services Provider 

Topics: Dynamics 365