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D365 Deployment Types

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Posted on by 87
Greetings all,
 
I represent a company that does MS D365 implementations. I was trying to understand the changing landscape of the Dynamics 365 stack and came up with the idea below.
 
1. Legacy/Old Deployment – “Classic Finance & Operations”
  • Deployment: On-premises or cloud-hosted via LCS (Lifecycle Services).
  • Customization: Mostly X++ code in Visual Studio.
  • Focus: Finance & Operations (F&O) module-heavy, monolithic architecture.
  • Limitations: GUI customizations limited; integrations need custom code or services; difficult to extend outside F&O.
2. Modern Deployment – “Platform + FO”
  • Deployment: Cloud-first, via PPC (Platform + Power Platform Components).
  • Customization:
    • Configuration in GUI (data entities, forms, workflows, etc.).
    • Code via VS Code FO plugin (X++ or extensions).
  • Focus: Hybrid approach — easier maintenance than classic F&O, supports extensions rather than overlayering.
  • Advantages: Better separation between customizations and core code; supports upgrades more smoothly.
3. Latest Deployment – “Full Power Platform / Dataverse Approach”
  • Deployment: Cloud-first, highly integrated with Power Platform (Power Apps, Dataverse, Power Automate, etc.).
  • Customization:
    • All major customizations can be done in Power Platform with low-code/no-code.
    • Dual-write allows syncing Dataverse and F&O.
  • Focus: Extensible, cross-app integrations, low-code innovation.
  • Caveats:
    • Some features are still evolving (can be “unstable”).
    • Performance and governance need careful planning.
       
Can someone please confirm that the above is correct?
Our plan is for all future implementations to be done on latest platform to avoid outdated practices.
I have the same question (0)
  • Jonas "Jones" Melgaard Profile Picture
    5,016 Most Valuable Professional on at
    Moved question to the Engage forum, as it's discussing industry trends. Hope you don't mind
  • Suggested answer
    André Arnaud de Calavon Profile Picture
    305,012 Super User 2026 Season 1 on at
    Hi,

    Can you first explain your definitions of 1, 2, and 3? What is in your opinion different between 2 and 3?  Is it your idea that 3 is the future and others should be deprecated? I don't understand what you try to differentiate. Every cloud-hosted environment deployed via LCS (1) already has a linked Power Platform environment. That gives the option to fully integrate with other Dynamics 365 solutions and the Power Platform. Via option 3, you can also customize using X++. During implementations there might be a choice between personalization, configuration, Power Platform, or a customization. That is not different for each of the deployment types. 
    Only when you talk about on-premises, than it is harder to connect and use other cloud solutions, like the Power Platform.

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