Dynamics 365 vs Dynamics AX - Which ERP you Must Choose?

d365 vs dynamics ax
Jul 15, 2023

Businesses all across the world have always had a difficult time selecting the best ERP. Although choosing an ERP solution is challenging, having a system that streamlines your company's operations makes complete sense, given the advantages. Microsoft offers two popular ERP solutions: Dynamics 365 Microsoft and Dynamics AX. In this article, we will delve into a comprehensive comparison of both to help you decide which ERP solution best suits your organization's needs.

Understanding Microsoft Dynamics AX

Microsoft Dynamics AX is a potent ERP platform created to assist businesses in efficiently managing regular chores and backend procedures. It offers business functionality to help several organizational sectors, such as:

  • Finance
  • Enterprise Intelligence
  • Inventory Control
  • E-commerce
  • Service Administration
  • Human Resources
  • Project Management
  • Retail

This ERP solution meets all of the needs of many Small and Medium Enterprises. It enables them to automate repetitive tasks, improve customer service, set up advanced analytics, and integrate their financial systems. Here are a few more advantages that Dynamics AX has to offer.

Increased Consumer Satisfaction

Dynamics AX assists businesses in improving their capacity for logistics management and accelerating product delivery to customers. Furthermore, they can use the analytical traits of the software to identify issues that could negatively impact customers. As a result, it becomes easy for businesses to take swift action to fix them.

Reduced Operational Outlays

Microsoft AX assists businesses in lowering their overhead cost. Because due to the software’s automation feature, companies need fewer people to carry out manual operations. This also aids in speeding up the functions in the supply chain and decreases human error. Increased productivity and efficiency follow from that.

Improved Visibility

Identifying what is occurring with your assets and where business procedures might be enhanced is simpler. In order to provide insights into business performance across all operational areas, Dynamics AX gathers business data and sets up predictive analysis.

What is Dynamics 365 Microsoft?

Dynamics 365 is a comprehensive cloud-based suite of business applications offered by Microsoft. It integrates various modules for enterprise resource planning (ERP), customer relationship management (CRM), human resources, supply chain management, sales, marketing, and more into a unified platform. As a result, it allows firms to streamline their operations, gain insights, and enhance customer engagement through its flexible and scalable solution.

Thus, Dynamics 365 Microsoft is a collection of intelligent business tools that helps businesses become more flexible and manage complexity without raising expenses. Additionally, it offers cutting-edge consumer experiences and increased operational efficiency.

Let's examine the benefits businesses receive from using Dynamics 365 as their ERP system.

Improved Efficiency

The automation capability of Microsoft 365 allows you to do away with manual processes. Furthermore, you can set up more sophisticated procedures that enhance communication between various business sectors. Thus, having access to your ERP, customer relationship management (CRM), and Office applications from one platform rather than switching between them is another advantage of adopting Dynamics 365.

Lower Costs

With Dynamics 365 Microsoft, businesses do not need new server hardware to handle the processes. Instead, you pay a monthly fee that only covers the services required by your company. This implies you're saving money on staff and unneeded licenses to support the ERP infrastructure. So, you can apply those savings in other departments of your business.


One benefit of choosing Microsoft D365 over Microsoft Dynamics AX is the flexibility to personalize your business platform. You can select the services and software needed to support your business with the aid of a Microsoft Certified partner. You can increase the platform's functionality if your needs alter in the future by selecting extra subscription packages.  

What Are the Similarities Between Dynamics 365 and AX?

Both Dynamics AX and Dynamics 365 share many characteristics in common. They are both equipped with outstanding business intelligence capabilities, provide an incredible user experience, and let you create beautiful dashboards. It is all due to their sophisticated reporting tools.

What Distinguishes Dynamics 365 from Dynamics AX?

Simply said, while Dynamics AX is a desktop-based application, Microsoft Dynamics 365 is primarily a web- and cloud-based solution. Despite having many features in common, they differ significantly from one another in a wide range of areas. It includes the infrastructure on which each is installed, the licensing choices available, the capacity to integrate with other systems, and the scalability and development options available.

Which software should you choose between Microsoft AX and Dynamics 365?

You could see several similarities when comparing Microsoft D365 with AX to find the best ERP in Pakistan. Both ERP programs have features that are advantageous to your company's operations. Microsoft used cloud computing in the architecture of its Dynamics software package. However, Office 365 and SharePoint are two additional Microsoft products that businesses can integrate into the Dynamics 365 ERP.

In contrast, Microsoft AX on-premises deployment requires immediate server and related gear investments. Beyond that, you should consider the costs of:

  • Software Surveillance
  • Internet security tools
  • Space in a warehouse for servers
  • Upkeep of working equipment round-the-clock
  • Storage upgrades
  • Maintenance

When you use Dynamics 365 as your ERP solution, none of the above steps are essential. You receive all of this with your subscription. Moreover, IT staff members don't have to worry about conducting software updates or continuously monitoring the status of servers. Also, through your membership, Microsoft takes on responsibility for protecting and storing your information.

Application Layers are another foundational element of AX. While they increase the platform's power, upgrading them can become very challenging. Your IT personnel must manually set up service packs, hotfixes, and feature packs. At the same time, ERP D365 makes deployments easier. Since most tasks are automated, installing and configuring AX is necessary.

Now that you have understood the benefits of both platform, you can choose one that most suit your business.

How You Can Get Help with Microsoft Partner

Having a Microsoft Partner aware of the advantages and disadvantages of Microsoft Dynamics AX vs. 365 is beneficial. Aciano Technologies provide the best ERP in Pakistan. We take pride in the extensive knowledge that our technical specialists possess. We have experience assisting businesses with new ERP instance setups and legacy ERP platform migration. Contact us for additional details to see how working with us can benefit you.