Key Takeaways for Financial Leaders
- Business Central is NAV’s Cloud-Based Successor: It retains NAV’s core functionality while delivering modern capabilities through a SaaS model.
- Lower Costs & Automatic Updates: Subscription pricing eliminates infrastructure expenses and includes seamless, bi-annual updates from Microsoft.
- Smarter Customization via Extensions: No more core code changes—customizations are modular, upgrade-safe, and available through Microsoft AppSource.
- AI-Driven Efficiency: Embedded Copilot and AI Agents automate tasks, deliver predictive insights, and enhance decision-making across finance and operations.
- Future-Proof & Fully Supported: NAV support ends in 2028—Business Central ensures long-term security, compliance, and innovation within the Microsoft ecosystem.
Introduction: Your Clear Path to Understanding Microsoft’s ERP Software
If you’ve heard names like Navision, Dynamics NAV, and Dynamics 365 Business Central, it’s easy to get confused. Are they different products? Is one an upgrade? The simple answer is: they are all part of the same story. This guide will walk you through that story, step-by-step, to simply and clearly explain the upgrade from Dynamics NAV to Dynamics 365 and what the evolution means for businesses today.
One Product, Many Names: The Evolution of NAV to Business Central
The most important thing to know is that Dynamics 365 Business Central isn’t a completely separate product from Dynamics NAV (formerly Navision); it’s the next generation. The software has a long history and has gone through several name changes as it has grown more powerful.
- The Beginning (PC Plus to Navision): The story began in Denmark in 1984 with a PC-based accounting package called PC Plus. Its creators focused on building a strong, expandable technological foundation. In 1987, it was renamed Navision. Robust features like manufacturing and distribution were added around 2001, highlighting its power even before it joined the Microsoft family.
- Joining Microsoft (Dynamics NAV): In 2002, Microsoft acquired Navision in what was, at the time, its largest software investment ever. It was renamed Dynamics NAV, and over the years, Microsoft continued to build on its solid foundation.
- The Modern Era (Dynamics 365 Business Central): In 2018, Microsoft launched Dynamics 365 Business Central as the cloud-based evolution of NAV. This version represents the future of the product, built to work seamlessly with other modern tools.
This evolution from a desktop application to a modern cloud service brought about fundamental changes in how the software works.
The Core Shift: 3 Key Differences You Need to Know
While Business Central contains all the core business logic that made Dynamics NAV so popular, the way users interact with and manage the software has fundamentally changed. Here are the three most significant distinctions when considering a Dynamics NAV to Business Central upgrade.
Detailed Dynamics NAV vs Business Central Comparison
Read our Competitive Analysis: Microsoft Dynamics NAV vs Dynamics 365 Business Central for a more in-depth technical comparison of the NAV and Business Central.
Where It Lives: On-Premise vs. The Cloud
One of the biggest changes is the flexibility of deployment. Dynamics NAV was primarily an on-premise solution, meaning a company had to buy and manage its own in-house servers.
Dynamics 365 Business Central offers choice. While it can still be deployed on-premise, its true power is realized in the cloud. It can be hosted in a private cloud or, most commonly, as a true Software-as-a-Service (SaaS) solution, fully hosted and managed by Microsoft. This cloud model provides several key benefits:
| Benefit | What It Means For You |
| Greater Accessibility | You can access your business data and applications securely anytime, anywhere, and on any device. |
| Automatic Updates | Your system receives regular updates for new features and security enhancements automatically, with no IT project. |
| Lower Infrastructure Costs | You no longer need to invest in buying, maintaining, or upgrading expensive physical servers. |
How It Looks & Feels: A Modern User Interface
Business Central features a completely redesigned user interface that is cleaner and more intuitive than NAV’s traditional desktop client. The modern, web-based experience works seamlessly across desktops, tablets, and phones.
Here are two key improvements that transform the user experience:
- A Simplified Ribbon: The old, “sloppy big ribbon” at the top of NAV’s screen has been replaced with a single, simple line with drop-down menus. This gives you more screen space to work with while making functions easier to find.
- Time-Saving “Fact Boxes”: On list pages, like your customer list, Business Central displays “fact boxes” on the side of the screen. These show critical data—like open sales orders or payment history—at a glance. This is a huge “aha!” moment for users, who find they “are not going into the customer card nearly as much as they used to” because the data is right there. It means fewer clicks and faster workflows.
How It’s Customized: A New Approach to Upgrades
The most powerful change happened behind the scenes. Instead of modifying the system’s core code, customizations are now handled through “Extensions.” The best way to understand this shift is with an analogy:
- The Old Way (Dynamics NAV): Customizing NAV was like directly modifying a car’s engine. While it worked, it made servicing the car or upgrading to a new model later incredibly difficult and expensive.
- The New Way (Dynamics 365 Business Central): The new model is like an “app store” for your ERP. Through Microsoft’s AppSource, you can find and install new functionality from certified partners with a single click. Just as importantly, you can uninstall them with a single click. These “apps” or Extensions don’t touch the core engine, so they don’t interfere when the main system gets its seamless, automatic upgrades from Microsoft.
Some examples of Apps or Extensions available from 360 Visibility include:
- 360 Canadian EFT – Pre-configured EFT for Payables for major Canadian Banks using CPA 005 File Format
- 360 Canadian PAD – Automated payment withdrawal from your customer’s accounts with pre-authorized debit
- 360 Quick Sign – Automate cheque signing and simplify Accounts Payable with preconfigured authorized signatures.
This “extension” model is the key reason why upgrades in Business Central are simpler, cheaper, and happen without major disruption.
These technical and design shifts translate directly into tangible, everyday advantages for the people using the software.
What This Means for You: The Real-World Benefits of Dynamics 365 Business Central
The move to a modern, cloud-based platform gives D365 Business Central users powerful capabilities that were not available in Dynamics NAV (Navision).
- Seamless Integration Business Central is designed to work effortlessly with other Microsoft products that businesses use every day. Data flows smoothly between applications like Outlook, Excel, and Power BI, creating a unified ecosystem that boosts productivity and eliminates information silos.
- A Future-Proof System With regular, automatic updates included in the subscription, businesses are always on the latest, most secure version of the software. This “evergreen” approach means no more large, expensive, and time-consuming upgrade projects just to get new features or security patches.
- Smarter Insights with AI Business Central integrates Copilot, a powerful AI assistant that provides tangible business value. Instead of just storing data, Copilot helps you use it. It offers Predictive Analytics to forecast sales or inventory needs, Automated Task Management to handle routine data entry, Real-Time Decision Support with actionable insights, and Natural Language Processing that lets you ask questions in plain English.
- Intelligent Automation with AI Agents Business Central now includes AI Agents that go beyond traditional automation. These agents can autonomously handle complex workflows such as invoice matching, inventory reordering, and customer follow-ups. They continuously learn from your business data and user interactions, adapting to changing conditions and improving over time. This means fewer manual tasks, faster operations, and smarter decision-making across finance, supply chain, and customer service.
This forward-looking approach is not just a matter of convenience; it has become a necessity.
Explore the full capabilities of Dynamics 365 Business Central on Microsoft’s official solutions page.
Dynamics NAV vs Dynamics 365 Business Central
Microsoft Dynamics 365 Business Central (D365 BC) is described as an upgrade and the modern, cloud-based evolution of Microsoft Dynamics NAV. While BC retains the core functionality and business logic of NAV, it introduces substantial functional upgrades and new capabilities.
Here is a detailed comparison table of key features, functions, and processes between Dynamics NAV and Dynamics 365 Business Central, and why it’s clear that you need to upgrade Dynamics NAV to Business Central.
| Feature/Function/Process | Dynamics NAV | Dynamics 365 Business Central (D365 BC) |
| Deployment Model/Hosting | Primarily an on-premise ERP solution. Can be deployed on-premise or in a private cloud. Requires investment in and management of your own in-house servers. | Cloud-based ERP solution. Can be deployed in the Cloud (SaaS) or on-premises. Cloud hosting eliminates the need to maintain servers and backups. |
| Licensing/Pricing Model | Licensed on a per-server basis. Uses a Perpetual basis licensing model, and new licenses are no longer available. Available in Starter Pack & Extended Pack. Requires annual maintenance fees and infrastructure costs. | Licensed on a per-user basis. Uses a monthly subscription model. Available in ‘Essentials’ or ‘Premium’. Example pricing is $70 per user per month (Business Central Essential). Subscription pricing is generally all-inclusive, resulting in a lower total cost of ownership (TCO) compared to NAV. |
| Upgrades and Updates | Upgrades are not automatic. Was historically an expensive, time-consuming, and risky exercise. Systems are prone to being outdated. The product is no longer receiving new feature updates or enhancements. | Automatic updates are provided by Microsoft and included in the subscription price. Significant upgrades happen automatically with a bi-annual release cadence. Businesses always use an optimized version. Updates improve security and user experience. |
| Development Language | Uses C/AL (Client Application Language) code. All developments and modifications were integral to the core system. | Uses AL language code. AL offers more customization and helps manage, upgrade, and make extensions. No complex coding is required for workflows/integrations by end-users. |
| Customization & Extensions | Highly customizable, but required customization involved changing native source code. Customization often required purchasing “objects” (application elements). Custom code may not be usable in BC. Customizations are difficult to upgrade. | Modifications are developed using AL to create extensions. Extensions keep the standard BC intact, simplifying upgrades and lowering costs. Extensions are easy to install and integrate, offering great flexibility. 49,999 objects are free to use on the cloud. Offers more options to personalize without development. |
| User Interface (UI) | Desktop-based interface. Featured a clunky ribbon at the top and utilized a lot of real estate for the menu on the left-hand side. Traditional interface. | Modern, web-based responsive UI. Designed for cloud-based ERP solutions and is very easy to navigate. Simplified ribbon and removal of the side menu give more screen real estate. Available through web client, tablet, and phone clients (no Windows client). Highly intuitive and user-friendly, reducing training time. |
| Core Integration | Limited, Version Dependent. Limited integration. | Seamless integration with other Microsoft products, such as Office 365, Outlook, Excel, Microsoft Teams, Dynamics 365 Sales (CRM), Power Platform, and Azure. Enables a unified ecosystem where data flows seamlessly. Full integration is available with all Microsoft Products. |
| AI and Analytics | Limited reporting. None. | Integrates with Power BI to create powerful visual insights and analytics. Includes advanced AI and analytics tools. Features Dynamics 365 Copilot (AI capabilities). Copilot offers predictive analytics, automated task management, and real-time decision support. Advanced search features available, including smart search and automatic categorization. |
| Scalability | Not noted as highly scalable. Infrastructure maintenance is required on-premises. | Highly scalable, enabling seamless growth and expansion. Adapting the ERP system for growth is easy by contacting the partner to expand hosting capabilities or modify the plan. |
| Security & Accessibility | Data access is confined to the on-premise environment. May lag in receiving the latest security updates. | Can access data and applications anytime, anywhere, and on any device. Hosted on Microsoft Azure, providing robust security measures, data encryption, and advanced threat protection. Continuous security updates ensure protection against new vulnerabilities. Better security and low risk of data loss due to being a SaaS solution. |
| Lifecycle Status | Discontinued/Legacy product. No new licenses are sold. Mainstream support ended in January 2023. Extended support (limited to security vulnerability related issues) will cease by 2028. | Currently available and fully supported by Microsoft. Benefits from Microsoft’s continuous innovation and regular updates. Positioned as a future-proof solution. |
Ready to future-proof your ERP?
Discover 5 insider insights from a Senior Business Central consultant on upgrading from Dynamics NAV to Dynamics 365 BC. Learn how to modernize operations, boost security, and unlock the full power of the Microsoft ecosystem.
The Clock is Ticking: Why the Change is Happening Now
Microsoft has officially transitioned from Dynamics NAV to Business Central, which has a clear timeline for existing NAV users.
Microsoft has stopped selling new licenses for Dynamics NAV, and all extended support for the product will end in 2028. After this date, NAV will no longer receive any feature enhancements or, more critically, any security updates. This makes upgrading to Dynamics 365 Business Central a vital step for businesses to ensure their systems remain secure, supported, and compliant.
Conclusion: Embracing the Modern ERP
Dynamics 365 Business Central is the clear and modern evolution of Dynamics NAV. It takes the robust functionality that businesses relied on for years and reimagines it for the cloud, offering greater flexibility, smarter insights, and seamless integration with the wider Microsoft ecosystem. By embracing this transition, a business not only modernizes its operations but also prepares itself for future growth and innovation in an increasingly digital world.
Take the next step toward smarter, faster business operations – upgrade NAV to Dynamics 365 Business Central today and unlock the power of cloud-based agility, enhanced reporting, and seamless integration with Microsoft 365. Future-proof your business and stay ahead of the competition. Let’s start your upgrade journey now.
