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Business Central vs Dynamics NAV

Microsoft Dynamics 365 Business Central is Microsoft's new ERP solution for medium-sized businesses. Business Central was earlier known as Dynamics 365 Tenerife and now, delivered solely as a SaaS (Software as a Service) solution.

Microsoft has been developing ERPs for many years considering the difficulties and hurdles that industries are facing. Dynamics NAV is its popular ERPs with high potential to transform a business in a positive manner. Dynamics NAV and Business Central both are designed to serve small to mid-sized companies. With almost the same motto, same approach and same functionality, they both can help small companies to grow faster. To decide which one is better, let us dive more into with a comparative approach:


Dynamics NAV is built for on-premises deployment and Dynamics 365 Business Central is built on cloud deployment. This is the most significant difference in both ERPs. Though with the last 3 versions, Dynamics NAV can be hosted in the cloud too. But the seamless working of cloud based software can’t be achieved with it.


Due to difference in the platform, hosting of the both ERPs is also unlike. Being on on-premises platform, Dynamics NAV can be hosted with local data center whereas Business Central requires cloud host. Microsoft provides its own cloud service, i. e. Azure.


To access any information or retrieve any data, Business Central can be safely accessed from a web browser by related users. With the web client i.e. browser, the accessing can be done from everywhere and through all the possible modes. But, if using Dynamics NAV, local desktop client is essential to extract data and information.


Though both are conceptually designed for small and mid-sized businesses, Business Central is more helpful for small growing companies that need few customizations. Organizations with complex needs, more customization requirements and on-premises policy must opt for Dynamics NAV.

Extended Functionality

To extend the functionality in Dynamics NAV, partner channels have extensions which can be purchased. Also, Custom-made developments can be executed in the NAV for amplified functions. Compared to Dynamics NAV, Business Central does not have custom-development option. But, to get enhancements, Microsoft AppSource has varying apps. These apps can be purchased from the same for customized functions.


Dynamics NAV requires systems and space to operate which adds on maintenance and related expenditure. But, being controlled by cloud space, Business Central does not require any detailed infrastructure. No big space or equipment are needed which cuts huge on maintenance and handling.

Availability of updates

Dynamics 365 Business Central is a SaaS thus it works like a Software as a Service where no integration to newer version is required. It gets updated itself monthly without losing any stored information. Where in case of Dynamics NAV, updated versions are released annually and they need to be integrated with the older version. To store the information, data migrating from older to newer version is additional step. From the above differentiable study, we can conclude that both the ERP software have their uniqueness. Considering all the aspects, a company must select an ERP which meets their expectations and draw fruitful outcomes.

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