Microsoft Dynamics AX is a comprehensive enterprise resource planning (ERP) solution for global organizations that provides a single, centralized system to manage finances, operations, and customer relations.

Microsoft Dynamics 365 is a cloud-based business application platform that includes ERP applications. Both solutions help businesses automate processes, improve decision-making, and foster growth. 

Microsoft basically rebranded Dynamics AX as Dynamics 365 Finance and Operations when it released the cloud-based version in July 2017.

So, how do these two applications differ? Let’s take a look:

1. Deployment Options

Microsoft Dynamics AX is available as an on-premises solution or as a cloud-based service. Microsoft Dynamics 365, on the other hand, is only available as a cloud-based service. This means that you can access Dynamics 365 from anywhere with an internet connection, and you don’t have to worry about managing servers or hosting infrastructure. 

2. User Interface

Another difference between AX and 365 is the user interface. The web interface for Microsoft Dynamics 365 is based on HTML 5 and responsive design, which makes it mobile-friendly and easy to use. The web interface for Dynamics AX is based on Silverlight, which is not as mobile-friendly. However, both applications have a Microsoft Office-like ribbon interface that makes them easy to navigate.

3. Application Functionality

Microsoft Dynamics 365 includes all of the functionality from Dynamics AX, plus additional functionality from other Dynamics applications, such as Customer Engagement, Field Service, and Project Service Automation. So, if you’re looking for a comprehensive solution that covers all aspects of your business, Dynamics 365 is the way to go. 

4. Licensing Model

The licensing model for Microsoft Dynamics 365 is subscription-based, which means you pay a monthly or yearly fee to access the software. The licensing model for Dynamics AX is different—you pay a one-time fee to license the software, and then you pay an annual maintenance fee.

5. Pricing

Pricing for Microsoft Dynamics 365 depends on the plan you choose and the number of users you have. The price for Dynamics AX depends on the edition you choose and the number of users you have. generally speaking, Dynamics 365 will be more expensive than AX because it includes additional functionality. 

6. Infrastructure

Microsoft Dynamics AX is deployed on-premises, while Microsoft Dynamics 365 is deployed in the cloud. This means that with Microsoft Dynamics AX, businesses have to manage their infrastructure, including servers, storage, and networking. With Microsoft Dynamics 365, Microsoft manages the infrastructure for customers.

If you’re planning to upgrade from AX to 365, you might need professional help. With Oblige IT solutions, you can get the help of our team of Microsoft Dynamics 365 experts who will guide you through every step of the process—from data migration to system testing.

7. Upgrades

Upgrades for Microsoft Dynamics 365 are released on a quarterly basis and are included in the subscription price. Upgrades for AX are released every two years and are not included in the maintenance fee. This means that customers have to pay for upgrades when they’re available.

8. Customization

Microsoft Dynamics 365 applications can be customized using application programming interfaces (APIs), software development kits (SDKs), and standard tools like Microsoft Visual Studio. AX can also be customized using these methods, but it’s also possible to directly modify the application code. This means that customizations made to AX are more likely to break when an upgrade is installed.

9. Support

Both Microsoft Dynamics 365 and AX are supported by Microsoft. But because Dynamics 365 is a cloud-based service, customers get automatic updates and don’t have to worry about installing them. With AX, customers have to install updates manually. However, Microsoft has been gradually ending support for all Microsoft Dynamics AX products, so customers will eventually have to upgrade to Dynamics 365. 

So, there you have it! These are some key ways that Microsoft Dynamics AX differs from Microsoft Dynamics 365. When it comes to deciding which solution is right for your business, it’s important to consider your needs and requirements.

However, if you’re looking for a cloud-based solution that is subscription-based and doesn’t require businesses to manage their infrastructure, then Microsoft Dynamics 365 may be the better option.

Are you looking for a comprehensive solution that covers all aspects of your business? Oblige IT solutions can help you with your Microsoft Dynamics 365 needs. We offer a wide range of services, from data migration to system testing. 

Contact us today for a free consultation.