Dynamics 365 is continuously evolving. However, some people are still unsure whether to go with Dynamics 365 cloud or on-premise. We can assist you by guiding you through the entire evolution process.
In the beginning: Microsoft CRM
Microsoft’s Customer Relationship Management business services have experienced numerous name and functionality changes since their introduction in 2003. We take a look at Microsoft’s Power Platform’s history and current state.
Microsoft Business Solutions Customer Relationship Management, which included basic Sales and Customer Service modules, was released in 2003. New fields and custom code could be added to improve the product, but customization options were limited beyond that. With the release of Dynamics CRM 3.0 in 2005, Microsoft added a Marketing module to the core Sales and Customer Service modules. One can now also add the Custom record types and get the activities to get reports for business anywhere else. Already, the product was gaining remarkable adaptability.
The ability to build a single system on a single platform that could benefit almost every aspect of a business gave rise to the term “xRM” or “Anything Relationship Management,” as new versions of CRM were released. Complex multi-faceted systems are easy to go with a strong security model and simple reporting options. However, all of this is available on the original Dynamics CRM platform’s Sales, Service, and Marketing modules. Customers were typically required to purchase full Dynamics 365 CRM licenses to gain access to the ‘xRM’ platform, even if they did not require the core Dynamics CRM out-of-the-box functionality.
The arrival of Dynamics 365
Of course, Dynamics CRM was not the only business application in Microsoft’s expanding business software catalog; they also offered several Enterprise Resource Planning (ERP) products, such as Dynamics AX and Dynamics NAV. In order to standardize their business offering, Microsoft launched Dynamics 365 in 2016, which was essentially an umbrella grouping of CRM/ERP products. As a result, each product was rebranded.
Microsoft Dynamics 365 Evolution from On-Premise to Cloud
Dynamics 365 cloud is a software suite that includes Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and other services. Here’s a quick rundown of Microsoft Dynamics’ evolution since 2001, focusing on its ERP line, Dynamics 365. It starts with Microsoft’s acquisitions of NAV and AX, followed by name changes to Dynamics 365 (D365), Business Central (BC), and Dynamics 365 (D365), Finance and Operations (F&O), and finally, its cloud strategy.
Microsoft Business Solutions Acquisition History
When Microsoft bought Great Plains in 2001, it launched the Microsoft Business Solutions ERP line. With the acquisition of Navision in 2002, a multi-language, multi-currency business management solution for mid-sized firms to manage their financials, supply chain, and people, the ERP vision grew even further. Great Plains, Microsoft bCentral (TM), and Navision a/s were part of the Microsoft Business Solutions ERP solution range for small and midmarket organizations in 2002.
To compete with QuickBooks, Microsoft released rival ERP systems called Microsoft bCentral (TM) and Microsoft Small Business Financials (previously Microsoft Small Business Manager) in 2001.
Microsoft Business Solutions changed its name to Microsoft Dynamics in 2006, and their ERP purchases were rebranded Microsoft Navision to Microsoft Business Central and Great Plains to Dynamics GP. After Microsoft purchased Axapta in 2009, it became Dynamics Finance and Operations, an ERP geared to help companies, large organizations, and holding entities.
Microsoft acquired approximately 100,000 Navision-using firms and over 20,000 Axapta-using businesses as a result of these acquisitions.
Microsoft Dynamics Shifts Towards Cloud-based Strategy
Cloud computing allows consumers and companies to use apps at any computer with internet connectivity at any time without installation. According to the global top research group Gartner, Software as a Service (SaaS) is the largest category in the Cloud market, and sales are predicted to increase by 17 percent to $85.1 billion in 2019.
The change to cloud-based solutions was necessary for Microsoft Dynamics to remain competitive with its CRM competitors, such as Salesforce, and ERP competitors, such as Netsuite. Since 2016, Microsoft Dynamics has been migrating from on-premise to cloud-based and hybrid solutions to suit this plan, and with the renaming to Microsoft Dynamics 365, it will continue to do so in the future.
Microsoft Dynamics 365 Finance and Operations for Medium to Large Organizations
Dynamics AX was rebranded as Dynamics 365 for Operations in November 2016, and then again in July 2017 as Microsoft Dynamics 365 for Finance and Operations, which is the current moniker.
Microsoft Dynamics 365 for Finance and Operations is the company’s new flagship ERP solution for medium to big businesses (with a target size of more than 250 employees).
D365 Finance and Operations now interfaces with field service, project service automation, retail, sales, talent, and customer service, bringing together formerly disparate systems into a single platform. Boost productivity by automating tasks and workflows in Microsoft Office apps like Outlook, Word, and Excel.
Microsoft Dynamics 365 Business Central for Small to Midsize Businesses
Dynamics 365 Business Central is now a multi-language, multi-currency solution. It connects financials, sales, service, and operations to help businesses optimize processes, increase customer interactions, and make smarter decisions. It connects many systems into a single application, using Office applications like Outlook, Word, and Excel.
Microsoft Dynamics Evolves Beyond ERP and CRM
With its 2016 acquisition of professional networking site LinkedIn for about $26.2 billion, completed shortly after Dynamics 365 went live, Microsoft Dynamics has recently evolved beyond ERP and CRM to become an application platform for business processes. With access to LinkedIn’s 500 million corporate users, Microsoft CRM got integrated into one of the largest online communities. According to LinkedIn, people are more ready to respond to a LinkedIn InMail than to a typical email, which claims that its InMail response rate is 300 percent higher than a regular email.
If you have made your mind and know about the benefits of the Dynamics 365 cloud, you must start looking for the Dynamics 365 CRM pricing to get a suitable and custom D365 solution for you. If you want to know more about dynamics 365 licensing and dynamics 365 pricing, feel free to contact DFSM. Our experts will take you on a tour of licensing and pricing.