ERP Modernization, Microsoft Dynamics 365

Dynamics AX to Dynamics 365 Finance and Operations – Top ten FAQs

As your business grows, your ERP system needs to keep pace.

While Dynamics AX is a trusted solution for many, it might not offer the cutting-edge features and functionalities required to thrive in today’s competitive market. Dynamics 365 Finance and Operations (D365 F&O) emerges as a powerful alternative, designed to address the challenges of modern businesses.

Here are FAQs on Dynamics AX to Dynamics 365 Finance and Operations that provide a comprehensive overview of the migration process. They answer essential questions to help you make an informed decision about your organization’s future.

Dynamics AX to Dynamics 365 Finance and Operations Top Ten FAQs

Is Dynamics 365 Finance and Operations an upgraded version of Dynamics AX?

AX and F&O are built on the same framework and serve numerous additional purposes as ERP solutions. It has many new capabilities built on AX for complex manufacturing and warehousing. AX has become outdated and no longer supports new implementation. Dynamics 365 Finance and Operations is the current ideal choice for organizations.

F&O supports cloud and on-premise deployments, a massive bonus for companies regarding the transition process.

What are the cost differences between Dynamics AX and Dynamics 365 F&O?

Cost depends on numerous factors for both Dynamics AX and D365 Finance and Operations. Dynamics AX needs infrastructure costs for servers, whereas Dynamics 365 F&O does not. As a result, Dynamics AX users need to spend an average of $25000 per server, whether for in-house servers or hosted on 3rd party servers.

Dynamics 365 Finance and Operations users have their ERP hosted on the Azure cloud, eliminating server costs.

Migration costs for Dynamics AX to Dynamics 365 Finance and Operations can vary depending on several factors, including the complexity of your current AX setup, the amount of data to be migrated, and the chosen deployment option (cloud, on-premise, or hybrid). Generally, licensing costs for D365 F&O follow a subscription-based model, eliminating the need for upfront server infrastructure investments required by Dynamics AX.

F&O Full users’ license

$210 per month per user

What is the difference between AX and F&O licensing?

Licensing for Dynamics AX and Dynamics 365 Finance and Operations differs significantly. Dynamics AX has a perpetual licensing of four types: Enterprise, Functional, Task, and Self-Service. D365 Finance and Operations follows a monthly or annual licensing model and has four types: Full, Operations Activity, Team Member, and Device. This shift from perpetual to subscription licensing can impact budgeting and cost forecasting for your organization.

Does Dynamics 365 Finance and Operations have better reporting capabilities than AX?

Absolutely. Dynamics AX reporting is known for its complexity and slow database performance, hindering real-time insights. Dynamics 365 Finance and Operations is built with superior reporting functionalities. It offers fast report creation, diverse data retrieval methods, and smooth integration with Power BI for advanced data visualization and analytics.

Are Dynamics 365 updates easier than AX?

Yes, updating Dynamics 365 Finance and Operations is significantly simpler compared to Dynamics AX. While AX requires manual updates for each machine and SQL server, Dynamics 365 can update the whole environment remotely. AX’s updates are tedious, and companies tend to bypass updating their application for years. Dynamics 365 updates are easier, and organizations can skip up to three updates.

Dynamics 365 Finance and Operations and Dynamics AX features

Does Dynamics 365 Finance and Operations require an internet connection?

Businesses often have their warehouses in remote locations, and accessing it can become difficult without an internet connection. There are non-cloud deployments for F&O. However, users cannot utilize certain features available only in cloud deployments.

Does Dynamics 365 integrate with other apps or products better than AX?

Integration capabilities are another area where Dynamics 365 Finance and Operations shines. D365 F&O seamlessly integrates with a wider range of applications than Dynamics AX. This includes all Office 365 apps, the Power Platform suite, other Dynamics 365 applications, and solutions developed by Microsoft partners.

What are the support options for AX and Dynamics 365 F&O?

Microsoft no longer supports any versions of Dynamics AX. However, Microsoft partners can extend support for AX 2012 R3. D365 F&O has Microsoft’s complete support and its partners’ support.

Is Dynamics 365 better than AX for disaster recovery?

Dynamics AX does not have disaster recovery as a built-in feature, which can cause data loss during times of technical or natural disasters. Dynamics 365 Finance and Operations, hosted on Microsoft Azure, includes disaster recovery functionalities. Azure’s real-time data replication ensures minimal disruption and swift recovery during an outage.

Note: Microsoft controls the preservation period for backups, and if you require extended backups, you must manually move the data to the Lifecycle Services asset library.

Which is best for cybersecurity, Dynamics AX or Dynamics 365?

Dynamics 365 Finance and Operations offers a more robust security posture than Dynamics AX. Using Azure’s advanced security features, D365 F&O safeguards your data through multi-factor authentication and other industry-standard security protocols. This enhanced security minimizes the risk of data breaches and unauthorized access.

Seamless transition from Dynamics AX to Dynamics 365 F&O with LevelShift

Microsoft partners play an integral role during migration to Dynamics 365 applications. Internal teams within organizations can help achieve the same goal. However, they typically take longer to complete and tax the in-house technical resources.

LevelShift is a Microsoft Gold partner with trained professionals who devise perfect solutions for Dynamics 365 implementations and migrations. Our on-demand services help you with the best solutions within a cost-efficient framework. You only pay for the services you use.

Talk to our experts to learn about migration to Dynamics 365 Finance and Operations.