Dynamics 365 is a cloud-based ERP and CRM enterprise system. It was built by Microsoft for maximum flexibility and extensibility.
Dynamics 365 isn’t an ERP or a CRM product, it’s both. Microsoft already has significant plays in ERP (Microsoft Dynamics GP, Microsoft Dynamics NAV, Microsoft Dynamics AX), and CRM (Microsoft Dynamics CRM). Dynamics 365 is the next step in the evolution of a combined ERP and CRM product.
Dynamics 365 will be a starting place for organizations. It is unlikely that it will fit your business perfectly from day one. But once you start using it, Microsoft’s vision is that you’ll find the customizations you need on Microsoft AMicrosoft’s increasing commitment to the cloud means that the availibility of their new product is not a surprise. The cloud also allows Microsoft more control and standardization over the development of Dynamics 365, which is necessary given the common data model.
On-premises users can still go with Microsoft Dynamics GP or NAV; also, Dynamics 365, Enterprise Edition can be deployed on-premises if desired.ppSource.