Difference Between Dynamics AX And Dynamics 365 Customer Engagement (CRM)

Compare Microsoft Dynamics 365 Vs Dynamics CRM

In this article we will have a look at the differences between Microsoft’s ERP application for enterprises – Dynamics AX ( now it is called Dynamics 365 Finance and Operations) and Customer Engagement (previously Dynamics CRM).

Dynamics 365 is a combination of Microsoft’s ERP and Customer Engagement (CRM) applications. Businesses use Dynamics 365 to manage their customer interaction as well as to keep track of their operations.

In short, Dynamics 365 is more than just CRM) and ERP, it is the combination of Customer Engagement and ERP apps where businesses can purchase individual or multiple apps together.

Earlier we had Microsoft Dynamics stack which is nothing but a group of 6 enterprise applications – 6 enterprise business applications.

Apps in Microsoft Dynamics Stack/Suite are listed below:

  • Dynamics Customer Engagement(CRM)
  • Dynamics AX (Axapta)
  • Dynamics NAV ( Navision)
  • Dynamics GP ( Great Plains)
  • Dynamics SL ( Solomen)
  • Dynamics C5

Out of these, only the first one CRM applications and rest are ERP applications from Microsoft for different domains and market segments.

WatchIntro to Dynamics 365 Customer Engagement(CRM)

Dynamics 365 Finance and Operations

Finance and Operations (FNO) is the upgraded version of Microsoft’s Dynamics AX which is the ERP suite for enterprise businesses to mange their operations.

Dynamics 365 FNO has the following apps:


Supply Chain Management (SCM)

Talent (HR)


Differences between Dynamics AX and Dynamics CRM

Lets have the major differences between Dynamics AX/ FNO and dynamics CRM.

Primarily the first one is ERP application while the second one is a CRM.

Dynamics CRM is used to manage customer interactions and retain customers while Dynamics AX is used to manage end to end operations of an orgnization.

Dynamics CRM has apps like sales, customer service, field service, marketing while Dynamics AX has apps Finance, Production, manufacturing, supply chain, talent.

All modules of Dynamics CRM are available on Dynamics 365 and on cloud while not all apps in Dynamics AX are yet on Dynamics 365.

Dynamics CRM is the only CRM application of Microsoft while they have multiple applications like Business central central, Great plain, Solomon etc

On-Premise And Online versions of Dynamics AX

Dynamics AX aka Dynamics 365 FNO has both on-premise and cloud versions available. Depends on a business’ needs they can go for either of these versions.

On-premise Dynamics Ax is more suitable if you have a server infrastructure available to manage your server and applications. At the same time cloud version is suitable for small businesses who don’t want to invest in the in the infrastructure and maintenance.

Similar to Dynamics FNO, Dynamics CRM and business central applications also have both on-premise and online( cloud) versions are available.

In November 2016 Microsoft has come up with the ‘re-packaging’ of existing Dynamics solutions. They had taken all the modules from Dynamics CRM such as Sales, Customer Service, Marketing and few modules from Dynamics AX such Finance, talent and retail and initiated as Dynamics 365.


About Magnifez Technologies

Magnifez Technologies is a Certified Microsoft Partner company and focused on Dynamics 365, Office 365, azure and Power Platform services.

Our dedicated team provides consulting, implementation and managed services and have happy customers.