Something that was kind of a big deal happened this week. During the keynote at Directions ASIA in Bangkok, Marko Perisic (General Manager, Microsoft Dynamics SMB) announced that Dynamics 365 for Financials and Dynamics NAV will operate on the same codebase.
There are two reasons why this is a big deal. First it falls right in line with Microsoft’s “AND strategy” when it comes to cloud ERP and on premise ERP. BOTH are essential to Microsoft, and BOTH will have a place in their product line. Second, and this is where NAV is kind of unique, it will allow Dynamics 365 for Financials to be “Full NAV” in the cloud. Let that sink in: Microsoft is committing to having full Dynamics NAV functionality in Dynamics 365. Whether you implement in the cloud or on premise, your ERP will operate on the same codebase. As far as I can tell, there are not many ERP products that provide this. I have a feeling that it is a trend that many will follow though.
The Dynamics 365 codebase has always been the same as NAV, but only parts of its functionality was exposed. The assumption was that the Dynamics 365 codebase could potentially diverge from the on prem version of the product, although how that would happen was not always very clear. Now that there is a firm commitment to keeping a single codebase, the next step is that Dynamics 365 will at some point provide “Full NAV” capabilities, which was in fact also part of the same keynote.
— Arend-Jan Kauffmann (@ajkauffmann) March 23, 2017
The nuts and bolts are still in progress. Dynamics 365 is updated constantly and NAV only gets monthly cumulative updates and annual version updates. There is also a lot of movement in how add-ons and customizations will be implemented, although the magic word there is “Extensions”.
For Microsoft to come out and announce the equal codebase though….. that is a Very Big Deal.