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From NAV to Next: Dynamics NAV vs Dynamics 365 Business Central
Explore how Dynamics NAV vs Dynamics 365 Business Central stack up in functionality, flexibility, and cloud capabilities for modern businesses.
Neha Bhagat
Senior Director – Microsoft Dynamics (Practice Head)
June 3, 2025
Navision is still a versatile ERP system, best liked by SMBs, distributors, and manufacturers for its strong production control features and industry flexibility. It still provides insightful business information, accommodates deep customizations, and acts as a data hub for the whole business. However, most companies today face the limitations of their old on-premises architecture.
Microsoft Dynamics 365 Business Central supplants Navision, which has the same familiar core features in the cloud and is augmented by sophisticated features, better scalability, and modern user interfaces.
Today, we will explore what’s new and unchanged and what you should pay attention to for a smooth transition. This in-depth exploration of Dynamics 365 Business Central vs Navision will inform your next ERP choice.
Key Differences: Dynamics 365 vs Dynamics NAV
When Dynamics 365 Business Central vs Dynamics NAV are compared, some key differences emerge:
Deployment: Business Central is cloud-based, providing anytime, anywhere access on any device. NAV is mainly on-premises, with in-house infrastructure required.
Mobility: Business Central has built-in mobility and supports remote work. NAV requires additional setup for mobile connectivity.
Features: Business Central offers an extensive suite that is out of the box. NAV typically depends on customizations and third-party add-ins for comparable functionality.
Licensing: Business Central subscribes to a user-based model where you have to pay for only active users. NAV has a server-based model where fixed costs are incurred regardless of the number of users.
All these factors make the Dynamics 365 vs NAV choice critical for companies seeking flexibility, scalability, and cost savings.
Beyond these primary considerations, several other variables also push the decision in favor of Business Central, influencing many organizations to reexamine Microsoft Dynamics 365 vs NAV and shift to the cloud.
Hosting
A significant difference between Microsoft Dynamics 365 vs NAV is the hosting model. Business Central was designed to extend NAV functionality to the cloud, providing hassle-free upgrades, easier extension management, and the absence of on-premises servers. As a SaaS product, it offers higher scalability, better data security, less risk of data loss, and on-demand availability.
User Interface
Perhaps the most marked difference in Dynamics NAV vs Dynamics 365 Business Central is in the user interface. Business Central, built in the cloud, has a contemporary, intuitive experience that increases productivity. It is based on the AL code language, which makes it easier to customize, has smooth upgrades, and effectively manages extensions compared to NAV’s aging C/AL language.
Moreover, Business Central natively integrates with Office 365 apps such as Outlook, Excel, and Dynamics 365 Sales, allowing end-users to automate business processes and build integrations without complicated coding, abolishing silos and simplifying operations.
Upgrades
One distinguishing difference in Microsoft Dynamics 365 vs Navision is upgrades. Business Central uses a bi-annual release cycle and automatic update, where the business always works on the current, safest, and optimized version. On the other hand, Navision does manual and generally complicated upgrades. Although updates to Business Central might take up to 90 days to release, they bring significant performance, security, and user experience advancements, which make it a much sought-after migration option for most businesses.
Licensing and Flexibility
Within the comparison of Navision vs Dynamics 365, the licensing structures are quite different. Business Central is based on a monthly subscription, and you can access the ‘Essentials’ or ‘Premium’ versions from multiple devices such as iOS, Android, and PC with Single Sign-On support. Its cloud-based nature ensures that working remotely is easy and provides businesses with increased flexibility and cost savings. Navision employs a more conventional licensing strategy with features such as the Starter Pack and Extended Pack that do not offer the same level of flexibility.
Feature Comparison Table
| Criteria | Dynamics NAV | Dynamics 365 Business Central |
|---|---|---|
|
Deployment |
On-premises only |
Cloud-first, hybrid optional |
|
Licensing Model |
Perpetual license |
Subscription-based |
|
User Interface |
Windows-rich client |
Web-based, mobile-optimized |
|
Customization |
C/AL code modifications |
AL extensions, AppSource integrations |
|
Reporting |
Limited |
Power BI |
|
AI Capabilities |
Third-party add-ons required |
Copilot and native Azure AI integration |
|
Updates |
Manual, infrequent |
Automatic, twice-yearly |
|
Integration |
Limited to SQL Server |
Microsoft 365, Power Platform, Azure Synapse |
|
Compliance |
Self-managed |
Built-in GDPR, HIPAA, ISO certifications |
|
Total Cost (5 years) |
$250,000+ (50 users) |
$168,000 (50 users, cloud) |
AI Copilot Steals the Limelight in Microsoft Dynamics 365 Business Central
Microsoft has focused on integrating Copilot into Microsoft Dynamics 365 Business Central vs NAV, introducing AI-powered automation, accelerated data processing, and assisted guidance to enhance productivity and automate tasks.
Key Copilot Capabilities in Business Central 2025 : The 2025 Wave 1 release features a few Copilot capabilities.
Summarize with Copilot: Provides automatic summaries of documents and records for efficient information processing.
AI-driven Task Automation: Copilot automates tasks, reducing manual work and improving accuracy, especially in finance and supply chain.
Autofill Fields: Offers suitable field values, minimizing data typing and errors.
Sales Order Agent: Automates sales order taking to enhance order management efficiency.
Chat with Copilot: Offers interactive support to enable users to comprehend and leverage installed add-on applications.
Korcomptenz: Smarter Transitions from NAV to Dynamics 365
As a Microsoft Dynamics Gold Partner, Korcomptenz offers you a distinct edge in navigating the difference between Microsoft Dynamics NAV and Dynamics 365. Our expertise in Microsoft Navision vs Dynamics 365 implementation ensures a smooth shift to Business Central, giving your business better operational efficiency, better financial visibility, and speedier decision-making within a single, cloud-based platform optimized for small and mid-sized firms.
Conclusion
Opting for the right ERP solution can be daunting. This Dynamics 365 Business Central vs Navision comparison reveals key differences to inform your choice. If you’re looking for a seamless upgrade path, our Dynamics 365 specialists are here to help. Book your consultation today.
