Dynamics AX is an ERP solution designed to manage core business processes. However, Microsoft has ended support for Dynamics AX, shifting its focus to cloud-based solutions.
As an on-premises solution, Dynamics AX can no longer meet the needs of modern organizations. It is now available in the cloud as Dynamics 365 Finance and Operations, offering advanced features.
Instead of continuing with Dynamics AX, users should migrate to Dynamics 365 Finance and Operations to leverage benefits such as AI, advanced analytics, and scalability.
Microsoft Dynamics AX licensing is now part of the cloud-based Dynamics 365 family, making it a critical ERP solution for enterprises looking to streamline financial and operational processes.
On-premises Dynamics AX to Cloud-based Dynamics 365
Dynamics AX licensing has shifted from an on-premises model to a cloud-based, subscription-based licensing model. Dynamics 365 Finance and Operations offers advanced features while retaining the core functionalities of AX, enabling organizations to drive growth.
Since Microsoft has ended full support for AX, it is strongly recommended to migrate to Dynamics 365 Finance and Operations for continued efficiency and innovation.
However, there are key points to consider.
No support for Dynamics AX
The end of mainstream support means that no patches or security updates are available for Dynamics AX. While organizations can continue using Dynamics AX, they will face increased vulnerabilities due to the lack of security updates. Additionally, they may encounter issues such as non-compliance with regulatory requirements and the lack of vendor support.
Transition to Dynamics 365 Finance and Operations
Upgrading Dynamics AX licensing is the practical solution. However, organizations can continue using Dynamics AX ERP without support, license upgrades, or access to advanced features.
Migrating to the cloud with Dynamics 365 Finance and Operations enhances business operations through AI-powered advanced features, enabling organizations to accelerate processes while maintaining financial stability.
Dynamics 365 ERP subscription is available with various licensing plans, allowing businesses to choose a model that aligns with their needs and processes.
On-premises options
Dynamics 365 Finance and Operations is primarily a cloud-based solution but can also be installed on-premises. An on-premises deployment gives organizations full control over their data and infrastructure while still leveraging the ERP solution’s advanced features.
However, not all cloud features are available in the on-premises version.
For a dedicated upgrade process, organizations can connect with Microsoft Dynamics 365 partners who are well-versed in Dynamics 365 Finance and Operations migration.
Dynamics 365 Finance and Operations licensing models
Various Microsoft software options are available for businesses. Organizations can choose the plan that best suits their operations.
Here are the different Dynamics 365 options:
User Licenses
User license is typically a licence for a particular user to access the platform and its various features. This license determines the access to Dynamics 365 features and capabilities for each user. The cost depends on the level of access needed by the user.
Full user licenses.
The Professional User License provides users with access to the full set of features across Dynamics 365 applications, such as Finance, Supply Chain Management, Sales, Customer Service, and more.
The Essential User License, on the other hand, is for users who need access to basic system functionalities across applications. It offers a more limited set of features compared to the Professional User License.
Activity user license
This license is for users who need to perform specific tasks, such as generating reports, processing orders, and viewing critical data.
Team member license
This type of license is for users who require limited access to Dynamics 365 features. Their tasks may include viewing reports, updating records, or performing non-intensive activities. This cost-effective license is ideal for team members who do not need full access to Dynamics 365 features.
Device license
This type of license provides access to Dynamics 365 through devices rather than individual users. The device license is commonly used in environments like retail, where multiple users share the same device.
Dynamics 365 Finance and Operations (Formerly Dynamics AX) licensing
Microsoft Dynamics 365 Finance and Operations offers different licensing options for organizations:
- Full User License: Provides comprehensive access to all Finance and Operations features.
- Operations Activity License: Grants access to specific transactional activities within Finance and Operations.
- Team Member License: Enables users to perform minor tasks as well as view and analyze data.
- Device License: Allows access to Dynamics 365 Finance and Operations data through shared devices.
- Base Licensing: Covers base applications like Dynamics 365 Finance or Dynamics 365 Supply Chain Management.
Microsoft allows users for an easy ERP subscription. This adds value to their operations with the Dynamics 365 applications. It is important to have a proper understanding of the licensing options and the requirements while adopting Dynamics 365 Finance and Operations for your business.
If you would like to explore more about the licensing options and pricing for Dynamics 365 Finance and Operations and other Microsoft software options, reach out to Microsoft Dynamics 365 Partners like IAX SERVICES.
The experts will help you upgrade your existing Dynamics AX licensing to its cloud version, Dynamics 365 Finance and Operations, and jumpstart your business in 2025 and beyond.
FAQ Section
What happened to Dynamics AX?
Microsoft has ended support for Dynamics AX, shifting its focus to cloud-based solutions. While organizations can still use Dynamics AX, they will no longer receive security updates, patches, or new features.
Why should businesses migrate to Dynamics 365 Finance and Operations?
Migrating to Dynamics 365 Finance and Operations offers businesses AI-powered advanced features, improved analytics, scalability, and cloud-based flexibility. It ensures better security, compliance, and ongoing support from Microsoft.
What are the licensing options for Dynamics 365 Finance and Operations?
- Full User License (comprehensive access)
- Operations Activity License (limited transactional access)
- Team Member License (viewing and minor tasks)
- Device License (shared device access)
Can Dynamics 365 Finance and Operations be deployed on-premises?
Yes, Dynamics 365 Finance and Operations can be deployed on-premises, giving businesses full control over their data and infrastructure. However, some cloud-exclusive features may not be available in the on-premises version.