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What is Microsoft Dynamics 365?
Microsoft Dynamics 365 is Microsoft's umbrella brand for its business cloud applications and bundles ERP and CRM functionality under one roof. Rather than a single program, it is a family of individually licensable apps for areas such as finance, supply chain, sales, customer service and field service. The applications run predominantly in the Azure cloud, with the CRM-oriented apps and the Power Platform sharing a common data platform in Microsoft Dataverse. They are also tightly interwoven with Microsoft 365 and the Power Platform, which explains their positioning as a composable application ecosystem.
What is the difference between Business Central and Finance & Supply Chain Management?
Business Central is the ERP solution for small and medium-sized enterprises and is regarded as the successor to Dynamics NAV (Navision); it covers finance, purchasing, warehousing and, in part, manufacturing in one integrated application. Finance & Supply Chain Management — formerly marketed jointly as Finance & Operations and previously as Dynamics AX/Axapta — targets larger organisations with complex materials management, multi-level manufacturing and international consolidation. In 2019 Microsoft split this enterprise line into the separately licensable apps Dynamics 365 Finance and Dynamics 365 Supply Chain Management. The choice therefore depends less on the brand than on company size, process complexity and the required industry depth.
How much does Microsoft Dynamics 365 cost?
The prices are list prices per user per month, usually billed annually and varying by region, partner and contract. Following the price adjustment of late 2025/early 2026, Business Central lists at around 85 euros (Essentials) and around 115 euros (Premium), with restricted Team Members licences costing just a few euros. The enterprise apps Finance and Supply Chain Management start at around 210 US dollars as a first app, while a second application can be added via the considerably cheaper attach model (around 30 US dollars); CRM apps such as Sales Enterprise and Customer Service Enterprise typically come in at around 105 US dollars, with simpler editions below that. Beyond the licence fees, implementation, interfaces, training and ongoing maintenance should be factored into a total cost of ownership view.
What is Microsoft Dataverse and what role does it play?
Microsoft Dataverse is the shared data platform on which the CRM-side Dynamics 365 apps and the Power Platform are built. It stores business entities such as customers, contacts and sales opportunities in a unified, security-governed model and makes them available across applications. This allows information from sales, service and adjacent applications to be brought together, coming close to the idea of a single source of truth. On top of Dataverse, companies can create their own extensions with little programming effort via Power Apps, which positions the family in the low-code space.
Which apps belong to the Dynamics 365 family?
The ERP strand comprises Business Central for the mid-market as well as Finance and Supply Chain Management for larger organisations. The CRM and customer engagement strand includes Sales for sales teams, Customer Service, Field Service for field operations, Customer Insights (whose Journeys component emerged from the former Marketing app) and Project Operations for project delivery. Added to these are applications such as Commerce for retail and Human Resources for HR. Apps can be licensed individually or in combination, allowing companies to tailor the functional scope to their own needs step by step.
Is Dynamics 365 the same as Microsoft 365?
No, despite the similar names these are two different product worlds. Microsoft 365 comprises office and communication software such as Word, Excel, Outlook and Teams for day-to-day collaboration. Dynamics 365, by contrast, consists of business ERP and CRM applications for processes such as financial accounting, supply chain, sales and customer service. The two product families can be used in an integrated way but are licensed separately and serve different purposes; the similarity of the names frequently causes confusion during the selection process.