Figuring out which enterprise resource planning (ERP) or customer relationship management (CRM) solution is right for your managed service provider (MSP) clients can be a complex process. There are over 400 million small- and medium-sized businesses (SMBs) worldwide, and every one is a little different, so you need to have different solutions available on offer and a clear understanding of which tools are better served for what purposes.
This comprehensive comparison between Microsoft’s Business Central and Dynamics 365 products will help you in this decision-making process. If you’re going to recommend these solutions to your clients, it’s imperative that you know the distinctions to guide them towards the most suitable choice for their needs.
What is Microsoft Business Central?
Microsoft Dynamics 365 Business Central is an all-in-one business management solution designed for SMBs. It helps organizations streamline their operations, connecting financials, sales, services and operations under one tool. This improves customer interactions, reduces data silos and helps businesses make better decisions.
Which MSP clients is Business Central the right fit for?
Business Central is ideal for SMB clients looking for a comprehensive business management solution that can be used across the organization. It’s a strong choice across industries such as manufacturing, distribution, retail and professional services.
Business Central was designed with scalability in mind, so your clients can start with the features they need and add more as their business gets more complex and organizational needs change. Becoming a Microsoft Dynamics Business Central MSP partner allows you to tap into the vast majority of businesses globally with a solution designed specifically for them.
What is Dynamics 365?
Microsoft Dynamics 365 is Microsoft’s suite of business applications that help organizations effectively manage their operations, engage with their customers and drive growth.
It combines CRM and ERP functionalities to provide a comprehensive solution supporting multiple business functions, including sales, customer service, finance, operations and marketing.
Which MSP clients is Dynamics 365 the right fit for?
Dynamics 365 is ideal for businesses of all sizes looking to integrate their CRM and ERP capabilities into a single platform, especially those with lots of moving parts and high levels of operational complexity. The solution is highly customizable and scalable, making it suitable for businesses with evolving needs.
Comparison of Business Central and Dynamics 365
Choosing between Business Central and Dynamics 365 can be a daunting task for MSPs. Both platforms offer comprehensive feature sets, but understanding their differences is key to making the right recommendation for your clients.
| Criteria | Business Central | Dynamics 365 |
| Functionality | Comprehensive business management for SMBs, including financials, sales, service and operations. | Integrated CRM and ERP capabilities for various business functions, including sales, customer service, finance, operations and marketing. |
| Scalability | Designed to be scalable for growing SMBs. | Highly customizable and scalable for businesses of all sizes. |
| Integration | Integration with other Microsoft products and third-party applications. | Integration capabilities with Microsoft products and third-party applications. |
| Customization | Can be customized to meet specific business needs. | Highly customizable to suit complex and evolving business requirements. |
| Cost | Cost-effective solution with flexible pricing models. | Pricing varies based on modules and customization |
| User Experience | User-friendly interface with intuitive navigation. | Modern and intuitive user interface with a focus on user experience8. |
Pros and Cons
| Business Central | Dynamics 365 | |
| Pros | – Comprehensive Management: Ideal for SMBs, offering a full suite of financial, sales, service, and operations management tools.
– Cost-Effective: Flexible pricing models make it accessible for smaller businesses.
– Integration: Seamless integration with Microsoft products like Office 365, enhancing productivity.
– User-Friendly: Intuitive interface that reduces the learning curve for MSPs and their clients. |
– Integrated Capabilities: Combines CRM and ERP functionalities, providing a holistic solution for various business needs.
– Customization and Scalability: Highly customizable and scalable, suitable for businesses of all sizes.
– Advanced Features: Includes advanced modules like Field Service and Project Service Automation, catering to diverse client needs.
– Extensive Integration: Integrates with a wide range of Microsoft and third-party applications. |
| Cons | – Limited to SMBs: Primarily designed for small to medium-sized businesses, which may limit its applicability for larger enterprises.
– Customization Needs: May require additional customization to meet specific client requirements. |
– Higher Cost: Can be more expensive depending on the modules and customization required.
– Complexity: The extensive features and capabilities may require more training and support for your clients. |
Which one is right for your MSP clients?
Choosing between Business Central and Dynamics 365 for your clients involves understanding their needs and future goals. Here are some key considerations to guide your decision:
Client needs assessment
Start by evaluating your client’s specific needs. Business Central works best for SMBs trying to streamline their operations and improve efficiency. Business Central also integrates with Copilot, allowing for a wider range of abilities in managing and extracting data insights from a client’s business.
On the other hand, Dynamics 365 is suitable for businesses of all sizes that require integrated CRM and ERP capabilities to manage various business functions, including sales, customer service, finance, operations and marketing.
Industry considerations
Different industries have unique requirements that can influence platform choice. For instance, a healthcare provider may prioritize data security and compliance, which Dynamics 365 can robustly support with its advanced features.
Meanwhile, a retail business might focus on customer engagement and e-commerce capabilities, areas where Business Central excels with its user-friendly interface and seamless integration with other Microsoft products.
Future growth
Consider your client’s future growth and scalability. Business Central is designed to be scalable for growing SMBs, designed to keep costs down and avoid overwhelming your clients with features they may not need. As their needs change, you can add on functionality with your clients.
Dynamics 365, on the other hand, offers a higher degree of customization and scalability, which makes it ideal for larger organizations with complex business needs. This ensures that the platform remains effective and efficient as the client’s business evolves.
Still not sure which option is best for your MSP clients? An experienced partner can help
Ultimately, choosing between Business Central and Dynamics 365 requires a detailed conversation to understand your client’s business model and plans so you can pick the solution that’s most aligned to their budget and the current and future direction of their business.
Business Central is an excellent choice for SMBs looking for a comprehensive, cost-effective solution to solve operational challenges. Dynamics 365 is better suited for businesses of all sizes that require integrated CRM and ERP capabilities to manage various business functions.
As an award-winning Microsoft cloud solution provider partner, Sherweb has years of experience helping MSPs make the best choice for their clients. Reach out to us to start a conversation, or check out our partner guide for more information about how we can help your business grow.
