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Microsoft Dynamics 365 and Microsoft Dynamics NAV

Major Differences Between Microsoft Dynamics 365 and Microsoft Dynamics NAV

What Are the Major Differences Between Microsoft Dynamics 365 and Microsoft Dynamics NAV?

With Microsoft having a massive line of products, it is often a challenge to choose the best tool to settle for when wanting to accomplish certain business functions. Some of them even have a number of similar features, which makes it more confusing to pick one over the other. Case in point, Dynamics NAV and Dynamics 365. What are the differences between the two? Which one is better than the other? Let us dig further.

What is Microsoft Dynamics 365?

Microsoft Dynamics 365 is a collection of integrated, customizable Software-as-a-Service (SaaS) applications and services that transform and enhance the productivity of your core customers, workers, and business processes. It integrates your data, business logic, and operations, combining Customer Relationship Management and Enterprise Resource Planning features. Instead of using distinct, isolated sales and marketing functions, Dynamics 365 provides automated, consolidated, and cognitive sales and marketing tools that integrate, prioritize, and transform prospects into paying clients. Its basis is on Microsoft Azure, which provides a secure platform and a diverse set of services.

What is Microsoft Dynamics NAV?

Microsoft Dynamics NAV is a component of business software. This is often an ERP tool that aids firms in managing the back-end activities and keeping their operations running every day.

Warehouse management, business intelligence, e-commerce and retail, financial management, inventory management, human resources, manufacturing, and distribution, project management, and service management are just a few of the sectors covered in Dynamics NAV. It includes certain sales and marketing skills as well, although it does not come with all the features of a comprehensive CRM.

Microsoft Dynamics NAV is part of the Microsoft Dynamics portfolio, which includes both CRM and ERP software (currently referred to as “apps” by Microsoft).

What are the key differences between Microsoft Dynamics 365 and Microsoft Dynamics NAV?

This is indeed a Microsoft Office service FAQ. Here are a few significant characteristics that distinguish the two tools:

1.      MS Dynamics 365 is solely cloud-based, whereas NAV is accessible both on-premise and in the cloud

MS Dynamics 365, as previously said, is entirely cloud-based and operated. When you sign up for Dynamics 365, you will join a totally cloud-based workplace. Only by going to Microsoft and logging in to your account will you be able to access all the Microsoft products you have subscribed to. However, NAV is available as both an on-premise and cloud-based solution. On-premise NAV is for companies that prefer to run their systems locally, whereas MS Dynamics Business Central, which was just released, is for mobile users who want to explore NAV on the cloud.

2.      Microsoft Dynamics 365 could encompass a variety of services, whereas MS Dynamics NAV is an Enterprise Resource Planning (ERP) solution only

MS Dynamics 365 is a cloud-hosted and supplied collection of Microsoft business software. It’s an all-in-one cloud service that includes CRM and ERP functionality. As a result, NAV can be a component of Dynamics 365, making Dynamics 365 occupy a larger class, compared to Dynamics NAV. Marketing, sales, talent management, project service automation, finance and operations, customer service, social engagement, project management, and MS PowerApps for customized app development are all included in the complete Dynamics 365 package.

3.      Dynamics NAV is cheaper compared to MS Dynamics 365

Obviously, Dynamics 365 is costlier because it includes more features. Because NAV primarily addresses ERP requirements, it comes with a reduced per-user cost. Companies who want to install NAV on their own can pick between the beginner’s and extended packages, with cost based on the number of basic and restricted users they will register.

When is Dynamics 365 the Best Option?

When you want a subscription-based pricing model

Users of Dynamics pay a monthly fee, rather than making a hefty upfront investment. Many businesses prefer this alternative since it is less burdensome on their cash flow. This SaaS approach also ensures that, as long as you pay the monthly price, you will receive Microsoft updates. To receive updates, you must purchase the most recent version of NAV.

When you are looking for an easily usable solution

Microsoft is solely responsible for Dynamics 365’s operations. You, therefore, do not need to have any fears about your networks, processors, or any other technical issues.

When you would like more flexibility

This can include a case where a corporation has ten users throughout the year, but only requires an extra ten users for the next few weeks each year. The organization will have to purchase a Dynamics NAV package with 20 total users. However, they might only use 10 of that 10 percent of said period. This organization can rapidly facilitate its growth to approximately 20 users and afterward move back to ten using Dynamics 365.

When is Dynamics NAV the Best Option?

When you want to change the source code

Many NAV customers just like the ability to edit and personalize their ERP by going straight into the source code. With Dynamics 365, it is no longer viable, but NAV still supports the feature.

If you must use an on-premise server

If you wish to have your ERP on your own servers, you have no alternative other than adopting Microsoft Dynamics NAV because Dynamics 365 is only cloud-based.

Whether using Dynamics NAV or Dynamics 365 is the right approach for you mainly depends on your needs. You can choose NAV if you really need an on-premises solution and the flexibility to edit the source code. On the other hand, Dynamics 365 is the ideal option if you need more flexibility, fewer deployment efforts, and have a tight budget but still want broader features.


Dynamics NAV and Dynamics 365 are some of the vast productivity software designed by Microsoft. They help to accomplish a number of business functions and improve your company’s productivity. However, it is difficult to deploy them on your own, maintain and conduct all the necessary updates while still keeping a close eye on your business. This is why you need an IT partner you can rely on.

Intelice Solutions works with firms in a variety of industries, including private equity, entertainment, financial services, healthcare, technology, and construction. We have deep knowledge of technology and IT operations, including everything to do with Microsoft products such as Dynamics NAV and Dynamics 365. We can handle the IT end of things while you focus on delivering the best services to your clientele. Schedule a consultation with us today to get a quote!

Intelice Solutions

At Intelice Solutions, we approach every partnership with the mindset that each IT component is a crucial tool making a company smarter, more efficient, and most importantly, more profitable. That’s why our service model supports your business technology from end to end. Every Comprehensive IT strategy is based on a microscopic examination of your business processes, company culture, strengths, and weaknesses to put everyone in a position to do their best work.