Both Microsoft Dynamics 365 and AX are all-in-one solutions that automate business processes such as production, logistics, finance and HR. Dynamics 365 is the modern version of AX and differs in terms of infrastructure, integration possibilities, licence usage, scalability and maintenance. The most significant difference between Dynamics 365 and AX is that the former is a cloud-based solution accessible via the internet. Dynamics AX is a desktop application mainly managed on-premise. That means that it’s available locally on physical servers rather than in the cloud.
Microsoft uses different payment models for its solutions. For Dynamics 365, you only pay for the services you use, and you do so monthly. When your business needs increase, you can scale up flexibly. Updates and functional improvements are rolled out automatically. On the other hand, Dynamics AX requires a high initial investment and a well-thought-out plan so that you have integrated all functionalities into your ERP system. It’s possible to add payment systems or logistics solutions to Dynamics AX afterwards, but that requires extra programming work. Another downside is that you have to carry out maintenance and repairs yourself.