Essential Differences Between Microsoft Dynamics NAV and 365

Choosing the right Microsoft product can be tricky, especially when they seem so similar. Two such products are Microsoft Dynamics 365 and Microsoft Dynamics NAV. They both help businesses run smoothly, but they do have some important differences. So, which one is better for you? Let’s take a closer look.

What is Microsoft Dynamics 365?

A set of Software-as-a-Service (SaaS) programs is Microsoft Dynamics 365. These apps work together to improve how your business operates, making it easier for your team to work efficiently. It combines tools for managing customer relationships (CRM) and enterprise resource planning (ERP). This means you can handle everything from sales and marketing to finances and operations in one place. Dynamics 365 is based on Microsoft Azure, which ensures that it’s secure and offers a wide range of services.

What is Microsoft Dynamics NAV?

One commercial software application that focuses on enterprise resource planning (ERP) is Microsoft Dynamics NAV. This means it helps businesses manage their day-to-day operations, like finances, inventory, and human resources. NAV is part of the broader Microsoft Dynamics family, which includes both CRM and ERP tools.

NAV covers many areas, such as warehouse management, e-commerce, financial management, and more. It also has some sales and marketing features, but not as many as a full CRM system.

Important Distinctions Between Microsoft Dynamics NAV and 365

The primary distinctions between these two tools are as follows:

1. Cloud-Based vs. On-Premise Options
   Microsoft Dynamics 365 is entirely cloud-based. This means you access it online, through Microsoft’s platform. On your own servers, software installation and maintenance are not a concern for you. On the other hand, Microsoft Dynamics NAV can be used either on-premise (installed on your local servers) or in the cloud. This gives businesses the flexibility to choose what works best for them. For example, if you prefer managing your own system locally, NAV offers that option. If you want to explore NAV on the cloud, there’s a version called Business Central that lets you do that.
2. Scope of Services
   Dynamics 365 offers more than just ERP capabilities.It’s a full suite of business applications that include both CRM and ERP features. This means it covers everything from sales, marketing, and customer service to finance, operations, and project management.However, the primary focus of Dynamics NAV is ERP.  It’s a powerful tool for managing business operations but doesn’t offer the full range of features that Dynamics 365 does.
3. Cost
   Because Dynamics 365 offers more features, it’s generally more expensive than Dynamics NAV. NAV is often more affordable because it primarily addresses ERP needs. Businesses can choose between different pricing packages for NAV based on the number of users and the features they need.

When to Choose Dynamics 365

• Subscription Pricing: Dynamics 365 uses a subscription model, so you pay a monthly fee rather than a large upfront cost. This can be easier on your budget and ensures you always have the latest updates.
• Ease of Use: With Dynamics 365, Microsoft handles all the technical details. You don’t need to worry about maintaining servers or dealing with complex IT issues.
• Flexibility: Dynamics 365 is ideal if your business needs change frequently. For example, if you need to add more users temporarily, Dynamics 365 makes it easy to scale up and down as needed.

When to Choose Dynamics NAV

• Customizable Source Code: If you like to customize your ERP system by editing the source code, NAV is the better choice. Dynamics 365 doesn’t offer this level of customization.
• On-Premise Server Use: If you prefer to keep your data on your own servers, NAV is the way to go since Dynamics 365 is only available in the cloud.

Conclusion

Choosing between Dynamics NAV and Dynamics 365 depends on your business needs. NAV is great if you need an on-premise solution or want the flexibility to customize your ERP system. Dynamics 365, on the other hand, is ideal if you want a more comprehensive, cloud-based solution that’s easy to use and offers a wide range of features.

Both tools can significantly boost your business’s productivity, but managing them on your own can be challenging. That’s where a trusted IT partner like Intelice Solutions comes in. We specialize in Microsoft products and can help you get the most out of Dynamics NAV or Dynamics 365 while you focus on running your business. Contact us today to schedule a consultation!