AX to D365 F&O: Understanding the Technical and Functional Changes

The migration from Microsoft Dynamics AX to Dynamics 365 Finance and Operations (D365 F&O) has become a critical step for many businesses in London and across the globe. Microsoft ended mainstream support for older AX versions, and enterprises now face a choice: either continue with legacy systems that limit growth or embrace the cloud-driven, AI-enhanced capabilities of Microsoft Dynamics 365.

This article explores the technical and functional changes businesses experience when they upgrade AX to D365. We will also highlight the importance of working with Microsoft Dynamics partners in London, the role of Dynamics 365 support services in London, UK, and how D365 integrates with other solutions such as Microsoft Dynamics 365 Business Central in London.

Why Businesses Are Moving from AX to D365

AX served enterprises for years with robust ERP capabilities. However, the market has shifted towards cloud-first, AI-enabled, and integration-ready ERP systems. Key reasons for upgrading include:

• End of support for AX: Without Microsoft updates, AX users face risks around compliance, security, and system reliability.
• Scalability: AX was largely on-premises, while D365 F&O is cloud-based, allowing seamless scalability.
• Cost optimisation: D365 reduces infrastructure and maintenance costs compared to AX.
• Integration with Microsoft ecosystem: D365 natively connects with Office 365, Power BI, Teams, and Power Platform.

For businesses in London, the shift is not just about upgrading technology but also about gaining a competitive edge with modern ERP functionality.

Technical Changes: From AX to D365 F&O

1. Cloud Architecture

• AX was primarily an on-premises ERP requiring physical servers.
• D365 F&O is hosted on Microsoft Azure, enabling high availability, disaster recovery, and reduced infrastructure costs.

2. Deployment & Updates

• AX upgrades were lengthy, resource-heavy, and infrequent.
• D365 follows a one-version policy, meaning customers receive regular updates with minimal disruption.

3. Development Environment

• AX used the MorphX IDE with X++ development.
• D365 development is Visual Studio-based, with X++ enhancements and tighter ALM (Application Lifecycle Management) integration.

4. Data Storage and Security

• AX relied on SQL Server databases, maintained by businesses on-premises.
• D365 uses Azure SQL Database, with role-based security, GDPR compliance, and advanced encryption.

5. Integration Capabilities

• AX had limited integration with third-party applications.
• D365 provides seamless integration with Microsoft Power Platform, AI tools, and APIs, enabling automation and real-time analytics.

Functional Changes: From AX to D365 F&O

1. Finance

• Enhanced financial reporting through Power BI integration.
• Global accounting standards compliance, with multi-currency and multi-entity support.

2. Supply Chain Management

• Advanced warehouse management and transportation capabilities.
• AI-powered demand forecasting to optimise inventory.

3. Human Resources

• HR capabilities are now enhanced through integration with Dynamics 365 Human Resources.

4. Manufacturing

• Smart manufacturing features such as IoT, predictive maintenance, and real-time shop floor insights.

5. User Experience

• AX had a more traditional ERP interface.
• D365 F&O delivers a modern, role-based, responsive UI, improving productivity and user adoption.

Why Work with Microsoft Dynamics Partners in London

Upgrading AX to D365 requires both technical migration expertise and a functional transformation strategy. Working with an MS Dynamics 365 partner in London ensures:

• Smooth migration with minimal disruption to operations.
• Industry-specific customisations for finance, manufacturing, or retail businesses in London.
• Ongoing Dynamics 365 support services in London, UK, to ensure post-migration success.
• Guidance on integration with Microsoft Dynamics 365 Business Central in London, if businesses need a separate ERP system for smaller subsidiaries or distribution networks.

Trusted Microsoft Dynamics partners in London provide end-to-end services, from assessment and planning to implementation, testing, training, and support.

Upgrade AX to D365: Migration Roadmap

A structured upgrade process ensures business continuity. A typical roadmap looks like this:

1. Assessment & Planning
   • Identify gaps between AX and D365 F&O.
   • Evaluate customisations, integrations, and data requirements.
2. Data Migration
   • Use Microsoft’s Data Migration Framework to move historical and active data.
   • Ensure data cleansing for accuracy and compliance.
3. Customisation & Extensions
   • Convert AX customisations to D365-compatible extensions.
   • Retire outdated or unnecessary custom code.
4. Testing & Validation
   • Conduct functional, technical, and performance testing.
   • Validate business processes in D365 environment.
5. Training & Adoption
   • Provide role-based training to users.
   • Leverage Microsoft’s modern UI for smoother adoption.
6. Go-Live & Support
   • Deploy D365 in a phased or big-bang approach.
   • Engage Dynamics 365 support services in London UK for ongoing monitoring.

Benefits of Upgrading AX to D365 F&O

• Business continuity with Microsoft’s cloud-first roadmap.
• AI and analytics for smarter decision-making.
• Lower total cost of ownership compared to on-premises AX.
• Stronger compliance with GDPR and other regulations.
• Future-ready platform with continuous updates and innovation.

Role of Dynamics 365 Support Services in London, UK

Even after a successful upgrade, businesses need reliable support. Partner-led Dynamics 365 support services in London, UK typically cover:

• 24/7 technical support for issue resolution.
• Functional consulting for business process optimisation.
• Performance monitoring to prevent downtime.
• Customisation support for evolving business needs.
• User training & adoption strategies.

This ensures businesses not only migrate successfully but also maximise ROI from their D365 investment.

Integration with Microsoft Dynamics 365 Business Central in London

For businesses in London that manage multiple subsidiaries, Microsoft Dynamics 365 Business Central in London can complement D365 F&O. While D365 F&O is ideal for large enterprises, Business Central is tailored for SMEs. Together, they provide a cohesive ERP ecosystem.

Conclusion

Upgrading from AX to D365 F&O is more than a technical migration it is a strategic business transformation. By leveraging cloud architecture, AI-driven insights, and improved integration, businesses can future-proof their operations. Partnering with the right MS Dynamics 365 partner in London ensures a smooth journey from AX to D365, while Dynamics 365 support services in London UK provide the long-term assurance businesses need to thrive.

For enterprises in London, the time to upgrade AX to D365 is now. With expert guidance and structured migration, businesses can unlock the full potential of Microsoft’s next-generation ERP.

FAQs

1. Why should I upgrade from AX to D365 F&O?
Ans: AX is no longer supported by Microsoft, leaving businesses at risk. D365 F&O offers cloud capabilities, AI features, better integration, and lower costs.

2. How long does it take to upgrade AX to D365?
Ans: The timeline depends on the complexity of your AX environment. On average, migrations take 3–9 months, depending on data volume and customisations.

3. What role do Microsoft Dynamics partners in London play?
Ans: They provide expertise in planning, migrating, customising, and supporting D365, ensuring minimal disruption and maximum ROI.

4. Can Business Central work alongside D365 F&O?
Ans: Yes, Microsoft Dynamics 365 Business Central in London can complement D365 F&O for SMEs or subsidiaries, providing a flexible ERP ecosystem.

5. Do I need ongoing support after migrating?
Ans: Yes, Dynamics 365 support services in London UK ensure smooth operations, issue resolution, and user adoption post-migration.