What is Microsoft Dynamics?
Microsoft Dynamics is Microsoft’s collection of legacy, on-premise enterprise resource planning (ERP) and customer relationship management (CRM) products. Cloud alternatives have replaced many of these solutions in recent years, but Microsoft still supports a handful of them. Read on to learn about the history of these products and how they’ve evolved over time.
Enterprise Resource Planning (ERP) Software
Microsoft Dynamics ERP is enterprise resource planning software primarily geared toward managing financials, operations, manufacturing, supply chain, payroll, and HR, as well as other critical business functions for midsize and enterprise organizations. Its applications are part of the Dynamics product line of business management software including:
Microsoft Dynamics GP (formerly Great Plains Software)—Microsoft purchased Great Plains from Great Plains Software in 2001, launching Microsoft’s entry into business applications. GP is an ERP software that helps manage financials, supply chain, employees, and manufacturing. Small, mid-sized, and nonprofit organizations still use Dynamics GP, as Microsoft continues to support the software. GP has been transitioned to Microsoft’s Modern Lifecycle support policy, and Microsoft has committed to supporting the software through at least 2028.
The cloud equivalent to Dynamics GP is Dynamics 365 Business Central.
Microsoft Dynamics SL (formerly Solomon IV)—This product was acquired by Microsoft in 2001 as part of the acquisition of Great Plains. SL was designed for project-driven organizations in North America. Extended support for SL ended in July 2021, and Microsoft continues moving customers off of this product in favor of cloud solutions.
Microsoft Dynamics NAV (formerly Navision)—Microsoft obtained NAV, along with Axapta, from NavisionDamgaard in 2002. NAV was a business management solution that handled financials, project management, and supply chain. It featured multiple languages and multiple currencies. The product as it once existed is no longer available, but it has been rewritten for the cloud in the form of Dynamics 365 Business Central.
Microsoft Dynamics AX (formerly Axapta)—Microsoft purchased NavisionDamgaard, the author of Axapta, in July 2002. AX was a multi-language, multi-currency enterprise resource planning (ERP) business software with global business management features for financial, human resources, and operations management, as well as additional industry capabilities for retailers, professional service industries, financial service businesses, manufacturers, and public-sector organizations. AX is no longer available as it originally was, so companies seeking a similar enterprise-level solution should opt for Microsoft’s cloud rewrites of AX—Dynamics 365 for Finance and Dynamics 365 for Supply Chain Management.
Customer Relationship Management (CRM) Software
Microsoft Dynamics CRM began in 2003 as Microsoft Business Solutions Customer Relationship Management 1.0. We remember this well, as Cargas was the first certified Microsoft CRM partner in the world. In 2005, Microsoft rebranded the software Microsoft Dynamics 3.0 to indicate its inclusion in the Microsoft Dynamics product family.
When Microsoft launched Dynamics 365 in 2016, the company encouraged all CRM customers to move to the cloud with the suite’s Sales module. Of course, Microsoft didn’t leave the original Microsoft Dynamics CRM solution behind. It still exists as an on-premise solution under the name Dynamics 365 Customer Engagement. Although it has stuck around, Dynamics 365 Customer Engagement is fairly limited compared to Dynamics 365 for Sales.
The Future of Microsoft Business Software
Currently, all of Microsoft’s cloud ERP and CRM products live under the Dynamics 365 umbrella. Businesses can think of this collection as an a la carte menu, from which they can select the modules that matter most to them. Dynamics 365 applications sync with other Microsoft applications from Microsoft 365 to the Power Platform.
About Cargas
Cargas has been a Dynamics GP partner since 1992 when it was still owned by Great Plains Software and was one of the first Microsoft partners to begin implementing Business Central. We have been a Microsoft Dynamics CRM/D365 partner since the inception of these solutions. Before Dynamics CRM, Cargas worked with the Siebel CRM product, which is now part of Oracle. Our team of software consultants and systems engineers brings years of experience to the CRM and ERP space, with more than a thousand successful implementations, and specific knowledge of the Dynamics GP and Dynamics 365 products.