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Microsoft Dynamics 365

ERP (Enterprise Resource Planning)

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★★★★☆ 4.0 / 5 on G2 · 4.4 on Capterra (908 G2 reviews)
4.0 / 5
G2 rating, 908 reviews [source]
Microsoft
Ecosystem [source]
$70
From per user / month [source]
Finance + ops

Quick facts

CategoryERP (Dynamics 365)
VendorMicrosoft
HeadquartersRedmond, Washington
Starts atFrom ~$70/user/mo (Business Central)
Best forMicrosoft ecosystem
DeploymentCloud
Free planFree trial
IntegrationsMicrosoft 365, Power Platform, Azure
G2 rating4.0 / 5
Capterra rating4.4 / 5

What is Microsoft Dynamics 365?

Microsoft Dynamics 365 is Microsoft's ERP, Business Central for mid market and Finance and Operations for enterprise, with finance and operations tied to Microsoft 365 and Power Platform. It runs finance, operations, supply chain, sales and service, with Business Central a comprehensive ERP for small and mid sized firms and Finance and Operations (now part of the Dynamics 365 ERP apps) for larger organisations, all integrated with Microsoft 365, Teams, Power BI, Power Platform and Azure. Flexible and user friendly, especially for organisations already invested in Microsoft, Dynamics 365 brings ERP into the Microsoft ecosystem. For firms in the Microsoft ecosystem, Dynamics 365 is a leading ERP choice.

Dynamics 365's distinction is being Microsoft's ERP, tightly integrated with Microsoft 365, Power Platform and Azure. For the many organisations already using Microsoft tools, ERP data and workflows connect to Teams, Outlook, Excel, Power BI and the Power Platform, with a familiar, flexible experience and low cost extension via Power Apps. That Microsoft integration and familiarity, with flexible customisation, set it apart for Microsoft centric organisations.

Dynamics 365 at a glanceMicrosoft Dynamics 365 is Microsoft's ERP tied to Microsoft 365 and Power Platform [Microsoft]. Business Central holds a 4.0 out of 5 rating across 908 reviews on G2 and 4.4 on Capterra, flexible and user friendly for mid market firms.

Who Microsoft Dynamics 365 is best for

Microsoft Dynamics 365 is best for organisations already invested in Microsoft that want flexible, user friendly ERP integrated with Microsoft 365, Power Platform and Azure, from mid market (Business Central) to enterprise (Finance and Operations). It suits Microsoft centric firms. It is a weaker fit for the very largest, most complex global enterprises where SAP or Oracle Fusion lead, very small firms wanting the lowest cost, where Odoo fits, or those wanting a single born in the cloud suite like NetSuite.

Key features

The core strengths are finance and operations, supply chain, and, in the broader Dynamics 365 family, sales and service, integrated with Microsoft 365, Teams, Power BI, Power Platform and Azure. Business Central offers comprehensive mid market ERP, Finance and Operations enterprise scale, plus flexible customisation via Power Apps. Its Microsoft integration, familiarity and flexibility are its defining advantages.

Microsoft Dynamics 365 pricing

Dynamics 365 is priced per user per month by application. Business Central Essentials starts around 70 US dollars per user, Premium around 100, while Finance and Operations enterprise apps run higher, around 180 or more per user, plus a free trial. Costs scale by apps and users. Match the application and tier to your size and needs. Confirm current figures on the Dynamics 365 pricing page.

Integrations and ecosystem

Dynamics 365 integrates natively with Microsoft 365, Teams, Outlook, Excel, Power BI, Power Platform and Azure, plus a partner ecosystem. Its deep Microsoft integration, which lets ERP connect to the tools organisations already use and be extended with low code Power Apps, is a signature strength and a key reason Microsoft centric firms choose it.

Dynamics 365 and the Microsoft ecosystem

The Microsoft ecosystem is the signature advantage: for organisations on Microsoft 365, Teams and Power BI, Dynamics 365 ties ERP into familiar tools and the Power Platform, so data, workflows and analytics connect with low friction and low code extension. For Microsoft centric organisations, this integration and familiarity are the main reason to choose Dynamics 365.

Ease of use and support

Dynamics 365 is flexible and familiar for Microsoft users, with strong integration and customisation, though reviewers note licensing can be costly and complex and that implementation needs a good partner. Its G2 reviews praise Microsoft integration and flexibility, with cost, complexity and partner dependence the main considerations.

Is Microsoft Dynamics 365 worth it?

For organisations already invested in Microsoft that want flexible, user friendly ERP integrated with Microsoft 365, Power Platform and Azure, Dynamics 365 is a strong choice. The main caution is licensing cost and complexity and partner dependence, so the largest enterprises may prefer SAP or Oracle Fusion, very small firms Odoo, and those wanting a single cloud suite NetSuite, but for Microsoft centric ERP Dynamics 365 is a leader.

Pricing

Business Central Essentials

$70
per user / month
  • Mid market ERP
  • Finance and operations
  • Microsoft 365 integration

Business Central Premium

$100
per user / month
  • Manufacturing and service
  • More features
  • Power Platform

Finance & Operations

$180
per user / month
  • Enterprise ERP
  • Advanced finance and SCM
  • Scale

Pros and cons

Pros

  • Deep Microsoft 365 and Power Platform integration
  • Flexible and user friendly
  • Mid market and enterprise options
  • Low code extension via Power Apps
  • Familiar for Microsoft users

Cons

  • Licensing can be costly and complex
  • Implementation needs a good partner
  • Not a single born in the cloud suite like NetSuite
  • Enterprise depth below SAP or Oracle Fusion

Microsoft Dynamics 365 alternatives

These erp tools come up most often against Microsoft Dynamics 365.

Microsoft Dynamics 365 FAQ

What is Microsoft Dynamics 365 used for?
Microsoft Dynamics 365 is used to run ERP processes, finance, operations and supply chain, with Business Central for mid market firms and Finance and Operations for enterprise, integrated with Microsoft 365, Teams, Power BI, Power Platform and Azure.
How much does Microsoft Dynamics 365 cost?
Dynamics 365 is priced per user per month by app. Business Central Essentials starts around 70 US dollars, Premium around 100, and Finance and Operations enterprise apps higher, plus a free trial. See the Dynamics 365 pricing page.
What is the difference between Business Central and Finance and Operations?
Business Central is Dynamics 365's comprehensive ERP for small and mid sized firms, while Finance and Operations is for larger enterprises with advanced finance and supply chain. Choose by your company size and complexity.
Dynamics 365 vs NetSuite, which is better?
Microsoft Dynamics 365 is strong for organisations in the Microsoft ecosystem with flexible ERP, while Oracle NetSuite is a single born in the cloud suite for growing firms. Dynamics suits Microsoft centric firms; NetSuite suits one comprehensive cloud suite.
Does Dynamics 365 integrate with Microsoft 365?
Yes. Dynamics 365 integrates natively with Microsoft 365, Teams, Outlook, Excel, Power BI, Power Platform and Azure, so ERP connects to the Microsoft tools organisations already use, which is its signature strength.
Is Dynamics 365 good for small businesses?
Dynamics 365 Business Central suits small and mid sized firms, especially those already using Microsoft, with comprehensive ERP from around 70 US dollars per user, though very small firms wanting the lowest cost may prefer Odoo.

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