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What is Microsoft Dynamics 365? | An Overview 2024

Since the first version of Microsoft Dynamics 365, it’s still held the top position of ERP and CRM systems in the ever-changing digital landscape. In this article, we would like to see its overview, including modules, prices, the history of the journey, and the challenges and solutions to improve growth.

What is Dynamics 365?

microsoft dynamics 365

Microsoft Dynamics 365 is a portfolio of Dynamics 365 CRM and ERP applications in the cloud that support businesses in managing effective operations. Moreover, it also integrates with data analytics, AI, and various apps, such as eCommerce, accounting, or another CRM or ERP, creating a comprehensive solution for businesses.

History of Microsoft Dynamics 365

Microsoft has invested in and innovated various versions to meet business demands. Dynamics 365 has been the level-up of Microsoft Dynamics since 2016, and now it continues to improve different features based on market changes.

Originally, Microsoft offered Dynamics ERP (which includes AX, GP, NAV, and SL) and Dynamics CRM and only worked on the premise to solve some basic requirements. Based on the growth of the market, Microsoft launched the portfolio of Dynamics 365, which includes:

  • 2016:
    • Dynamics Ax migrated to Dynamics 365 F&O and separated to Dynamics 365 Finance and Dynamics 365 Supply Chain Management
    • Dynamics CRM is separated into Dynamics 365 Customer Service, Dynamics 365 Sales, and Dynamics 365 Field Service
  • 2018: Dynamics NAV is involved in Dynamics 365 Business Central
  • 2020: Dynamics 365 Field Service transitioned to Dynamics 365 Field Operations

Besides, Microsoft also released more CRM and ERP applications in the Dynamics 365 series:

  • 2016: Dynamics 365 Field Service; Dynamics 365 Intelligent Order Management
  • 2018: Dynamics 365 Marketing
  • 2019: Dynamics 365 Fraud Protection
  • 2020: Dynamics 365 Commerce (upgraded from Dynamics 365 for Retails)

The Modules in Dynamics 365

microsoft dynamics 365 modules

Dynamics 365 includes a series of modules, each catering to specific business functions. The users can use it independently or in conjunction with one another, providing flexibility and scalability to businesses.

Microsoft Dynamics 365 CRM modules

Microsoft Dynamics 365 CRM is a flexible business solution that offers various modules, improving customer relationship management.

Dynamics 365 SalesIt supports businesses in streamlining their sales operations, managing leads, and closing deals more effectively.
Dynamics 365 MarketingIt includes tools for marketing automation, campaign management, and customer journey monitoring, which will help you improve your marketing efforts and customer engagement.
Dynamics 365 Customer ServiceIt is designed to improve customer support and service and includes tools for case management, service automation, and customer analytics.
Dynamics 365 Field ServiceEnhances on-site customer service by optimizing field service operations through scheduling, dispatch, and service agreement management.

Microsoft Dynamics 365 ERP modules

Microsoft Dynamics 365 ERP is a comprehensive business solution that automates and integrates numerous areas of organizational operations.

Dynamics 365 FinanceStreamlines financial procedures while providing insights into corporate performance and financial planning.
Dynamics 365 Project OperationsImproves project outcomes by combining project management with financial and resource management.
Dynamics 365 Business CentralA comprehensive ERP system for small and medium-sized organizations that covers finance, operations, sales, and customer care.
Dynamics 365 Supply Chain ManagementOptimizes supply chain activities, inventory management, and production planning to increase operational efficiency.
Dynamics 365 Intelligent Order ManagementUses AI to automate and optimize order fulfillment, ensuring timely and precise delivery.
Dynamics 365 CommerceIntegrates back-office, in-store, and digital experiences to provide a full retail solution for both online and physical businesses.
Dynamics 365 Fraud ProtectionUses AI to assist in preventing fraudulent activity and improving security and trust.

Microsoft Dynamics 365 pricing

First of all, your business needs to discover the license cost, including the level of services, team members, or add-ons.

  • Service level: Many Dynamics 365 apps offer different levels, such as basic, standard, or premium, with different features and functionalities.
  • Team members: it includes full users (who have a full range of functionalities) and additional users (who need limited access to the systems).
  • Add-ons: It has a wide range of costs for binding multiple applications.

Besides, depending on the Dynamics 365 application, it will have a different range of prices. Let’s take a look at the following table:

Unit: user/month

Dynamics 365 SalesProfessional: $65Enterprise: $95Premium: $135Relationship Sales: $162Copilot: $40
Dynamics 365 MarketingBase: $1,500Attach: $750Additional Contacts & Interactions: $250
Dynamics 365 Customer ServiceProfessional: $50Enterprise: $95
Dynamics 365 Field ServiceBasic: $95Contractor: $50
Dynamics 365 Finance$180
Dynamics 365 Project Operations$120
Dynamics 365 Business CentralEssentials: $70Premium: $100Team members: $8
Dynamics 365 Supply Chain Management$180
Dynamics 365 Intelligent Order Management$300 per 1,000 orders lines/month
Dynamics 365 CommerceBasic: $180Add-in: $4,000/month
Dynamics 365 Fraud Protection$12

Is Microsoft Dynamics 365 pricing expensive?

Microsoft Dynamics 365 is considered the leading CRM and ERP solution in the market. However, its prices seem more expensive than other systems, making it difficult for small and medium businesses to afford it. For example, it limits the number of users, offers limited free features, and has various additional costs.
But depending on your business requirements, you can only choose some from the Dynamics 365 application series. Then, you can sync Dynamics 365 with other systems, creating a streamlined and unified business operation.

Dynamics 365 challenges and solutions

Implementing Dynamics 365 presents challenges such as complex implementation processes, integration difficulties with current systems (legacy systems), and potential resistance from users accustomed to older systems. Balancing the level of customization to meet specific business needs is also a hurdle. The need for specialized training, especially for smaller businesses with limited resources, and the overall cost considerations further contribute to the challenges associated with Dynamics 365 implementation.

To address challenges in implementing Dynamics 365, it is essential to adopt a structured approach. Begin with a well-defined implementation plan, incorporating stakeholder input, and a phased rollout strategy. Besides, working with integration experts who have experience in Dynamics 365 and others for data synchronization support. Moreover, your businesses should prioritize user training to adopt new technologies or improve productivity.


Microsoft Dynamics 365 stands out as a powerful tool for modern businesses, offering a wide range of functionalities to streamline operations and drive growth. Its continuous evolution and integration with the latest technologies make it an essential asset for companies looking to stay competitive in a rapidly changing business environment.

We hope you can get some valuable information from this article. If you have any questions about integrating Dynamics 365 with other business systems, feel free to contact us.

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