What is Microsoft Dynamics?

Microsoft Dynamics is a collection of on-premise enterprise resource planning (ERP) and customer relationship management (CRM) tools developed by Microsoft. In recent years, many of these solutions have been replaced by cloud alternatives, although Microsoft still maintains a few of them.

Let’s move on to the history of these products and how they’ve evolved over time.

Enterprise Resource Planning (ERP) Software:

Microsoft Dynamics ERP is enterprise resource planning software primarily designed for midsize and corporate enterprises to manage financials, operations, manufacturing, supply chain, payroll, HR, and other essential company tasks. The Dynamics product range of business management software includes its apps.

Great Plains Software (previously Microsoft Dynamics GP) –  In 2001, Microsoft purchased Great Plains Software, initiating Microsoft’s foray into commercial software. GP is financial management, supply chain, personnel, and manufacturing software. Because Microsoft continues to support Dynamics GP, small, midsized, and charitable enterprises continue to use it.

Microsoft Dynamics SL (previously Solomon IV) – As part of the Great Plains acquisition in 2001, Microsoft bought this product. SL was created for North American project-driven companies. Extended support for SL expired in July 2021, and Microsoft is continuing to migrate users away from it in favor of cloud solutions.


Microsoft Dynamics NAV (previously Navision) – Microsoft bought NavisionDamgaard’s NAV and Axapta in 2002. NAV was a financial management, project management, and supply chain management tool. It included a variety of languages and currencies. The software as it was formerly known is no longer accessible, however, Dynamics 365 Business Central has been rewritten for the cloud.

Axapta (previously Microsoft Dynamics AX) – 

In July 2002, Microsoft purchased NavisionDamgaard, the creator of Axapta. AX was a multi-language, multi-currency enterprise resource planning (ERP) business software that included financial, human resources, and operations management features, as well as additional industry capabilities for retailers, professional service industries, financial service businesses, manufacturers, and public-sector organizations. Because AX is no longer accessible in its original form, businesses might consider Microsoft’s cloud rewrites of AX, Dynamics 365 for Finance, and Dynamics 365 for Supply Chain Management.

Customer Relationship Management (CRM) Software:

Microsoft Business Solutions Customer Relationship Management 1.0 was released in 2003 as the predecessor to Microsoft Dynamics CRM. Cargas was the first Microsoft CRM partner in the world, so we remember this well. Microsoft renamed the software Microsoft Dynamics 3.0 in 2005 to reflect its inclusion in the Microsoft Dynamics family of products.

When Microsoft released Dynamics 365 in 2016, the suite’s Sales module pushed all CRM clients to migrate to the cloud. Microsoft did not, however, abandon the original Microsoft Dynamics CRM product. Dynamics 365 Customer Engagement is still available as an on-premise solution. Despite its longevity, Dynamics 365 Customer Engagement is limited in comparison to Dynamics 365 for Sales.

The Future of Microsoft Business Software:

The Dynamics 365 umbrella currently encompasses all of Microsoft’s cloud ERP and CRM applications. This collection can be thought of as an a la carte menu from which businesses can choose the modules that are most important to them. From Microsoft 365 to the Power Platform, Dynamics 365 applications sync with other Microsoft applications.


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