Introduction: From Navision to Business Central
Microsoft Navision vs Dynamics Business Central – this is a comparison for companies that want to or are currently evaluating their ERP options. Microsoft Navision (now known as Dynamics NAV) was a leading ERP solution for many years. Microsoft Dynamics 365 Business Central, on the other hand, is the modern cloud-based successor, offering a host of new features and improvements.
In this article, we compare the two systems based on the most important aspects – functionality, cloud capabilities, user experience, integration, scalability and cost. We also explain why upgrading from Navision to Business Central is a smart move for companies looking to improve efficiency, leverage modern features, ensure compliance and secure long-term support.
This ERP comparison will help you understand the differences and choose the best way forward for your business.
What is Microsoft Navision?
Microsoft Navision, later renamed Microsoft Dynamics NAV, is a robust ERP system originally designed for small and medium-sized businesses. It started out as an on-premise solution, meaning it is installed on local servers and managed in-house. Over the years, Navision has gained a reputation as a reliable solution for financial management, supply chain and manufacturing.
Many companies have customized Navision to suit their processes and take advantage of its flexibility. However, as a legacy platform, Navision has a traditional client-based interface and requires regular manual upgrades to stay current. It is worth noting that mainstream support for Dynamics NAV ended in 2023 and extended support is scheduled to end in 2028. This signals that Navision is nearing the end of its lifecycle in terms of official Microsoft updates.
What is Dynamics 365 Business Central?
Dynamics 365 Business Central is Microsoft’s modern ERP solution that succeeded Navision/NAV. Business Central includes all the features of Navision but is built for the cloud. It can be deployed as a cloud-based business system (SaaS on Microsoft Azure) or on-premises, giving companies flexibility in how they use it.
Business Central is a unified platform that covers a wide range of business processes, such as finance, sales, purchasing, inventory, project management, service, manufacturing and much more. It has a web-based, user-friendly interface that is accessible from any device (desktops, tablets, phones) with an internet connection.
Microsoft releases updates for Business Central every six months, continuously adding new features and enhancements without requiring customers to manually make major upgrades.
In short, Business Central is the next-generation incarnation of Navision, an all-in-one, continuously updated business system for today’s business needs.
Key differences between Microsoft Navision and Business Central
Although Navision (Dynamics NAV) and Business Central share the same heritage and main purpose, there are significant differences in their technology and capabilities. Below we break down the comparison of Microsoft Navision vs Dynamics 365 Business Central into several key aspects:
Functionality and features
Both Navision and Business Central offer comprehensive ERP functionality covering finance, supply chain, and operations. However, Business Central expands the feature set with modern enhancements and out-of-the-box features. Many features that required specialized development or third-party additions in Navision are now built into Business Central as standard.
For example, Business Central has integrated business intelligence (with Power BI reports), AI-driven insights and automation tools that Navision lacks. Microsoft is also actively adding new modules and enhancements to Business Central (e.g., advanced inventory management, service capabilities, and manufacturing improvements), while Navision’s feature set has been relatively static in recent years. This means that Business Central can often address business needs with less customization, making implementation faster and more standardized.
Cloud capabilities and deployment options
A major difference between Navision and Business Central is the platform. Microsoft Navision is designed for local deployment and runs on your own servers. Dynamics 365 Business Central, on the other hand, is built as a cloud-based solution.
With Business Central, you can leverage Microsoft’s Azure cloud to host your business system and access it via a web browser from anywhere. Cloud hosting offers benefits such as automatic backup, high availability and no need to maintain physical server hardware.
Business Central’s cloud model also allows for easy scaling – you can increase storage space or add users without a complex infrastructure project by simply adjusting your subscription. (Business Central still allows on-premises deployment for those who need it, but the cloud option is a big draw for most businesses).
Navision, which is on-premises, doesn’t offer these cloud benefits unless you invest in private cloud hosting or virtualization. To summarize: Navision is tied to on-premise servers, while Business Central offers true SaaS flexibility, allowing you to access your ERP anytime, anywhere, and on any device.
User experience and interface
If you place Navision and Business Central side by side, the difference in user interface becomes immediately apparent. Navision’s interface (especially in older versions) is menu-driven, with a Windows client that, while powerful, can seem outdated.
Business Central has a modern, web-based interface with role-based dashboards, interactive charts, and cleaner navigation. The user interface is intuitive and consistent on the web and mobile. The modern design improves usability and productivity – for example, Business Central has an improved search function and personalized home pages that help users find information faster.
In addition, Business Central is tightly integrated with the Office 365 interface; for example, users can complete Business Central tasks directly in Outlook or Teams. The ease of navigation and familiarity with a web app make the Business Central user experience more seamless for today’s workforce.
Companies report that users can do more in less time thanks to Business Central’s simplified, guided interface, which is compared to the more technical interface of the older Navision.
Integration with other systems
Integration is a key issue in a digitally connected business environment. It is critical to driving digitalization and efficiency improvements. Dynamics 365 Business Central has been designed to integrate seamlessly with other Microsoft products and modern services, while integrating Navision with external systems often requires more work or add-ons.
Business Central has a built-in integration to Microsoft 365 (Office apps such as Excel and Outlook), enabling features such as editing Business Central data in Excel or synchronizing contacts and invoices with Outlook. It also integrates with Microsoft’s Power Platform (Power BI for analytics, Power Apps for custom apps, and Power Automate for workflow automation), allowing companies to extend their ERP with low-code apps and dashboards.
These native integrations reduce data silos and double entry. For example, a salesperson can see customer data from Business Central in Outlook emails, or a manager can see real-time dashboards in Power BI pulled from Business Central. Navision, which is older, doesn’t have ready-made connections to these services; achieving the same level of integration would require custom development or third-party middleware.
In addition, Business Central’s architecture uses a modern API and extension model, making it much easier to integrate with other cloud applications (e.g. CRM, e-commerce platforms) than with Navision’s technology.
The result is that Business Central fits more naturally into a connected software ecosystem, increasing the efficiency of all your business applications.
Scalability and performance
As companies grow, their ERP systems need to be able to scale up. Navision can handle a decent number of users and transactions on-premises, but scaling up often means investing in larger servers, SQL databases, and careful performance tuning.
Business Central’s cloud-based architecture inherently offers greater scalability. Microsoft Azure dynamically allocates resources to your Business Central instance as needed. You can scale from a handful of users to hundreds or more with minimal IT intervention. There’s no need to acquire new hardware; you simply adjust your subscription, and Microsoft makes sure the service can handle the load.
This is particularly beneficial for businesses with seasonal peaks or rapid growth, as Business Central can accommodate usage peaks without losing performance. Performance-wise, Business Central benefits from Microsoft’s cloud optimizations, so even complex processes (such as heavy reporting or calculations) run efficiently on Azure.
Significant hardware upgrades or database optimizations may be required to achieve similar performance in an on-premises Navision configuration.
In short, Business Central provides on-demand scalability and reliable performance, while Navision’s performance depends mainly on your server environment and investments.
Licensing and cost
The pricing model for Navision vs. Business Central is quite different. Navision (Dynamics NAV) was traditionally sold as a perpetual license with a significant upfront cost for the software and annual maintenance (typically around 16% of the license cost each year).
You also needed to invest in servers, SQL licenses, and IT resources to manage the system.
Business Central uses a subscription license model: you pay a monthly fee per user. This Software-as-a-Servic pricing model often lowers the barrier to entry because you don’t pay significant upfront costs.
It also means you only pay for the users you have and can add or remove users as needed. In terms of the total cost of ownership, Business Central’s cloud model can be cost-effective because it includes updates, infrastructure, and subscription support.
You’ll save on hardware and maintenance costs that you would have had with Navision. Over many years, however, costs may converge, but the big difference is that Business Central’s fees are more predictable and aligned with usage, while Navision had hidden costs for upgrades and IT overhead.
From a budget perspective, many CFOs prefer the flexible subscription model of Business Central to Navision’s pricing model. Microsoft has launched transition pricing offers for existing NAV customers who want to move to Business Central, making the upgrade financially attractive for those who are already paying maintenance for Navision while these offers are valid.
Why companies should consider upgrading to Business Central
If you are currently using Microsoft Navision (Dynamics NAV), there are many good reasons to consider upgrading to Dynamics 365 Business Central sooner rather than later. Upgrading is not just a technical version change, it is a strategic move to modernize your business. Here are the key benefits and arguments for making the switch:
- Improved efficiency and productivity: By upgrading to Business Central, you can streamline your business processes and improve overall efficiency. Thanks to the modern interface and integrated workflows, employees can navigate the system faster and complete tasks with fewer clicks. Automation features (such as scheduled reports, approval workflows, and AI-assisted processing) reduce manual work and errors. For example, with Business Central’s automation and Copilot AI features, routine tasks such as invoice processing or inventory adjustments can be expedited, allowing your team to focus on higher-value activities. The result is higher productivity and more efficient operations than most Navision configurations can achieve.
- Access to modern features and innovation: Business Central is continuously updated with modern features that Navision simply doesn’t have. By upgrading, you get instant access to things like native mobile apps (so your team can use the ERP on tablets and phones), built-in dashboards for business intelligence, AI-powered insights for forecasting, and connectivity to new technologies (e.g. IoT or machine learning add-ons). Microsoft is investing heavily in new features for Business Central – including integration with Microsoft Teams, AI (e.g. Dynamics 365 Copilot), and industry-specific enhancements. Sticking with Navision means missing out on this innovation. Upgrading ensures that your ERP system is future-proofed; when Microsoft releases new technology, Business Central users can benefit from it seamlessly. On the other hand, Navision users would be locked into legacy tools and may need costly customizations to achieve similar functionality (if possible).
- Improved compliance, security, and reliability: In today’s business climate, compliance and data security are non-negotiable. The fact that Business Central is cloud-based on Azure means it adheres to Microsoft standards for security and compliance. Your system will benefit from robust data encryption, automatic backups, and high-availability SLAs. In addition, Microsoft Business Central regularly updates to meet new regulatory requirements (e.g. changes in tax legislation or financial reporting standards in different countries). This means that your business system is up-to-date with compliance right from the start, whereas an older Navision system may mean you risk falling behind when it comes to regulatory changes. Cloud hosting also reduces the risk of downtime or data loss as Microsoft handles disaster recovery. Overall, upgrading to Business Central gives you a more secure and compliant platform, which is crucial for protecting sensitive business data and meeting industry regulations.
- Long-term support and continuous updates: As mentioned earlier, Dynamics Navision is nearing the end of its support period. Running a mission-critical system without active support or updates is risky – you won’t get bug fixes or compatibility updates for new operating systems, databases, etc. By moving to Business Central, you ensure that your business system is fully supported by Microsoft in the long term. Business Central receives semi-annual releases and continuous cloud updates, which means that your system will always have an updated supported version. This continuous update model also spreads out changes in manageable increments, so you’re never faced with a massive, disruptive upgrade, as was the case with Navision every few years. Essentially, upgrading to Business Central means joining the modern Dynamics 365 ecosystem where your software is always up-to-date and you have Microsoft support. This not only reduces the technical debt but also ensures that your business system will support you well for many years to come, with a clear development plan and improvements from Microsoft.
Conclusion: Meet the future of your ERP with Business Central
Microsoft Navision vs Dynamics 365 Business Central is more than a comparison between two ERP systems. It’s a reflection of how far business technology has come. Navision was a reliable workhorse in its day, but Business Central is the future-proof solution built for today’s fast-paced, cloud-connected world.
If your organization is still using Navision, the difference in functionality, cloud capabilities, user experience, integration, scalability, and cost structure is impossible to ignore. By upgrading to Business Central, you can improve efficiency, unlock modern features, ensure compliance with new standards, and guarantee long-term support for your ERP system.
In summary, Business Central offers a modern ERP platform that can grow and adapt to your business, while Navision will increasingly hold you back as it ages. An upgrade may require an investment and change management, but the payoff is a more flexible, productive, and competitive business. Don’t wait until Navision becomes obsolete or hinders your growth. Take action now to upgrade from Navision to Business Central and position your business for future success.
Want to know more?
The benefits of moving to Dynamics 365 Business Central are clear. Modernizing your ERP system will help streamline operations and keep your business competitive. If you’re thinking about upgrading from Navision to Business Central, now is the time to start planning. Contact Navcite here. We are a Microsoft Dynamics 365 partner. Let’s discuss your upgrade plan, see a demo of Business Central’s features, and get a customized migration plan.
