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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Difference of Dynamics...
Microsoft Dynamics AX (Archived)

Difference of Dynamics AX 2012 R3 version and Dynamics 365 for Operation

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Posted on by Community Member

Hello,

Microsoft is no longer issuing license for Dynamics AX 2012 R3 because of the new released Dynamics 365 for Operation. We are in the middle of a contract between a developer for an R3 version of AX and when we are about to purchase the license they told us that we need the latest version now. Can anyone give me idea what is the advantage of this Dynamics 365 if we will use it on-premise? And much difference will the hard wares we already purchased for the R3 version change?

Hoping someone could reply to this query.

Thanks and Regards,

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  • Suggested answer
    Vilmos Kintera Profile Picture
    Vilmos Kintera 46,149 on at

    You should have purchased the product license as one of the early project steps before starting the implementation project and buying the hardware, AX 2012 license was available until 1st of July and partners were made aware.

    It is very different on many levels, since Dynamics 365 for Finance and Operations, Enterprise edition has been designed to run on cloud and be accessible via a web browser. Both development and user experience are different, the available functionality has been changed/deprecated/expanded compared to 2012 too.

    For large enterprises there is a license- and hardware-wise more costly option to go with an on-premise setup, it is called Local Business Data (LBD). It has feature limitations as well, and just recently been made publicly available, so there is not much experience with it.

    Since you pretty much have to replicate the cloud environment, the R3 hardware is not enough because you need much more server components to run an Azure Service Fabric cluster.

    Check the system requirements guide:

    [View:https://www.microsoft.com/en-us/download/details.aspx?id=55496:750:50]

  • Henrik Larsen Profile Picture
    Henrik Larsen 646 on at

    Hi, as far as I understand new licences are now issued on D365FO only. However, for customers, who already have an AX 2012 R3 licence they should be able to use the new D365FO licences for AX 2012 R3 under the dual-use terms in the cloud agreement. This will allow customers to use AX 2012 R3 for some time until they transition to D365FO. You should speak to your partner / local Microsoft rep on dual-use, if you would like to implement AX 2012 R3 first and then move to D365FO in future.

    D365FO is primarily a cloud-based solution so the hardware is managed by Microsoft and you pay through subscription. To all intents and purposes, the D365FO application is the same as the AX 2012 R3 application. The main differences are the underlying technical architecture and the way you develop customisations.

  • Suggested answer
    Vilmos Kintera Profile Picture
    Vilmos Kintera 46,149 on at

    Well the above are a bit inaccurate, just have a look at the long list of deprecated or not implemented features. It is much more than a technical change under the hood.

    [View:https://docs.microsoft.com/en-us/dynamics365/unified-operations/dev-itpro/migration-upgrade/deprecated-features:750:50]

    [View:https://docs.microsoft.com/en-us/dynamics365/unified-operations/dev-itpro/get-started/ax-2012-features-not-implemented-but-not-deprecated?toc=dynamics365/unified-operations/fin-and-ops/toc.json:750:50]

    [View:https://docs.microsoft.com/en-us/dynamics365/unified-operations/dev-itpro/get-started/features-not-implemented-on-prem?toc=dynamics365/unified-operations/fin-and-ops/toc.json:750:50]

    And again, you do have on-premises option as mentioned above.

  • Henrik Larsen Profile Picture
    Henrik Larsen 646 on at

    Well, you can argue that, but at the end of the day, the focus for D365FO has been the technical shift to cloud. At this stage, I find it hard to recommend the on premises deployment option. Firstly, some features are still not implemented. Secondly, the service fabric deployment is still not proven.

  • Vilmos Kintera Profile Picture
    Vilmos Kintera 46,149 on at

    Even though I just heard from another MVP this week that they are up on-premises with their first customer environment, I would still advise OP against going for LBD. They have faced various challenges during deployment, and a lot of areas still need to be more streamlined or implemented indeed.

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