Dynamics NAV and Dynamics 365 are Microsoft family enterprise resource planning ( ERP) software. However, the both platforms are different in nature, scope, technology and long-term vision. Dynamics NAV has been designed especially for small to medium size businesses focusing on core functions such as finance, supply chain, operation etc. Being highly customized, it can function on manual upgrade and on-site infrastructure. Dynamics NAV is traditional but Dynamics 365 is a modern and cloud-based platform and ERM , CRM application. It basically helps for automatic updates, subscription- based licensing and is capable of seamless integration with other platforms such as Microsoft 365, Power BI Azure etc. 

In the both software basic differences are NAV is on-premises, Dynamics 365 is cloud- based.

In functionality, NAV can work as ERP software only but Dynamics 365 combines ERP and CRM both. Apart from this, NAV always requires manual upgrade but Dynamics 365 keeps updated automatically. Dynamics NAV presents Microsoft’s legacy, but Dynamics 365 has been designed according to future demands. Selection of any one software depends on deep analysis in business according to business need. 

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