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Microsoft Dynamics 365 Finance and Operations (FO) is the successor to Microsoft Dynamics AX, a popular ERP system used to manage business finances, operations, and supply chains. Both offer similar functions for managing finances, manufacturing, sales, service, and warehouses, but there are some key differences:

Deployment

  • Dynamics 365 FO: Designed to run in the cloud, offering flexibility, accessibility, and automatic updates.

  • Dynamics AX: Available as a cloud and on-premises option, provides greater control and customization, but requires additional infrastructure and maintenance.

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Architecture and Technology

  • Dynamics 365 FO: Built with X++ and Azure cloud technology, offers modularity and easier integration with other Microsoft services.

  • Dynamics AX: Using X++ and on-premises platforms, may require more complex customization for integration.

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Features and Functionality

  • Dynamics 365 FO: Has innovative features such as machine learning and analytics, focuses on a modern and intuitive user experience, and includes more business modules.

  • Dynamics AX: Focuses on stability and reliability, offers mature and tested features, and may be better suited to certain industries.

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Cost

  • Dynamics 365 FO: Has a cloud-based subscription model, which can be more cost-effective in the long run.

  • Dynamics AX: Requires initial licensing fees and on-premises maintenance fees, which can be more expensive upfront.

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Migration

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Conclusion

  • Dynamics 365 FO: Ideal for companies that want a modern, flexible, cloud-based ERP system with innovative features.

  • Dynamics AX: Suitable for companies that need a stable, reliable, and customizable ERP system with on-premises controls.

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