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Migrate Dynamics AX to
Dynamics 365 Finance and
Supply Chain Management

Simplify the move from Dynamics AX and modernize enterprise operations on Dynamics 365 Finance and Supply Chain Management.

Why Migrate from Dynamics AX to Dynamics 365 Finance and Supply Chain Management?

Every version of Dynamics AX, including AX 2009 SP1, AX 2012, AX 2012 R2, and AX 2012 R3, is now out of Microsoft support. Extended support for all versions has also ended. Organizations still running AX face four pressures that compound every year they stay.

Dynamics AX end of life and the end of Microsoft support

Microsoft no longer releases security hotfixes, non-security fixes, or regulatory updates for any Dynamics AX version. Tax changes, e-invoicing mandates, and statutory reporting updates now have to be built and maintained by your own team or partner, in every country you operate in.

The rising cost of running and staffing AX

AX runs on Windows Server and SQL Server infrastructure that ages out on its own schedule, and years of overlayered customizations make every change slower to build and riskier to test. At the same time, developers have moved to Dynamics 365 finance and operations apps, where customization is built as extensions, so experienced AX specialists get harder to find and more expensive to keep.

The widening AI gap

Copilot, AI agents, and the Model Context Protocol (MCP) server are built into Dynamics 365 Finance and Supply Chain Management. None of them run on AX. Microsoft's own migration guidance frames the move to the cloud as the way on-premises customers gain Copilot, Power BI, and Power Automate scenarios.

The integration ceiling

Connecting AX to Power Platform, Microsoft Fabric, and modern SaaS applications usually means custom middleware built around AX's Application Integration Framework. Dynamics 365 Finance and Supply Chain Management connects through standard data entities, OData APIs, and dual-write with Microsoft Dataverse.

Find the Right Path for Your AX to Dynamics 365 Upgrade

The right route from Dynamics AX to Dynamics 365 depends on your AX version, the AX features you use, and how much your business has changed since AX went live. Microsoft supports a true upgrade only from AX 2012 R2 and AX 2012 R3. Every other starting point moves to Dynamics 365 through data migration or reimplementation.

Your AX Version Path to Dynamics 365 What Carries Over
AX 2012 R3Direct upgradeCustom code, data, and full transaction history
AX 2012 R2Direct upgradeCustom code, data, and full transaction history
AX 2012 RTMUpgrade to AX 2012 R3 first, or reimplementDepends on the route chosen
AX 2012 with virtual companies or data partitionsReimplementationSelected master data and open transactions
AX 2009 SP1Data migration with Microsoft's DMTData. Code is rebuilt on Dynamics 365

Source: Microsoft Learn, “Upgrade from AX 2012 to finance and operations.”

Dynamics AX vs. Dynamics 365 Finance and Supply Chain Management: Key Differences

Dynamics 365 Finance and Supply Chain Management, formerly Dynamics 365 for Finance and Operations (D365 F&O), is the cloud successor to Dynamics AX. It keeps AX's X++ foundation but changes how the system is hosted, updated, extended, and connected. Here's how the two compare across key dimensions.

Dimension
Dynamics AX
Dynamics 365 Finance and Supply Chain Management
Deployment
On-premises on Windows Server and SQL Server
Cloud on Azure, managed by Microsoft. An on-premises option is also available
Licensing
Perpetual licenses with an annual enhancement plan
Subscription per user per month. Finance and Supply Chain Management are licensed separately
Updates
None. All AX versions are out of support
Regular service updates from Microsoft under the One Version model
Dimension
Dynamics AX
Dynamics 365 Finance and Supply Chain Management
AI capabilities
None built in
Copilot features, AI agents, and an MCP server for custom agents
Security and compliance
Managed by the customer, with no security hotfixes
Microsoft manages cloud infrastructure and security patching. Regulatory updates arrive through service updates
Scalability
Bound by your servers
Azure infrastructure with Microsoft-managed sandbox and production environments
Dimension
Dynamics AX
Dynamics 365 Finance and Supply Chain Management
Microsoft 365 integration
Excel add-in and limited Office integration
Excel-based data entry, Outlook-embedded approvals, and Teams collaboration
Reporting and analytics
SSRS reports and OLAP cubes
SSRS reports, embedded Power BI, and data sharing with Microsoft Fabric
API and integration
Application Integration Framework services and custom middleware
Data entities, OData APIs, the Data management framework, and dual-write with Dataverse
Dimension
Dynamics AX
Dynamics 365 Finance and Supply Chain Management
Customization
Overlayering that modifies base code
Extensions that leave base code intact, so Microsoft updates apply cleanly
Interface
Windows desktop client
Browser-based web client and mobile apps, including the Warehouse Management mobile app
Environment management
Customer-managed servers and databases
Microsoft-managed environments with self-service deployment for sandboxes

A Microsoft-Aligned Framework for AX to D365 F&O Migration

Alletec follows Microsoft's own upgrade framework to move Dynamics AX to Dynamics 365 Finance and Supply Chain Management. The Alletec Upgrade Factory delivers each stage with Microsoft's upgrade tools and Alletec's own automation, while Microsoft's Success by Design guidance governs the whole project.

01Analyze

Analyze

Assess and plan the upgrade

We run Microsoft's Upgrade analyzer and code upgrade estimation against your AX environment, alongside Alletec's scans of customizations, ISV add-ons, integrations, reports, and data volume. We then design the target solution: which customizations become extensions, which retire in favor of standard features, and which data moves with you.

What you get: a recommended migration path, a fixed-price scope, a sprint plan with milestones, an AI-readiness plan for Copilot and agents, and confirmed eligibility for Microsoft migration offers.

02Analyze

Execute

Convert, build, and upgrade data

AX code is converted to extensions with Microsoft's code upgrade service, integrations are rebuilt on data entities and APIs, and data upgrades run repeatedly in development and sandbox environments while AX keeps running. Every converted extension is checked by an AI code reviewer before it reaches production.

03

Validate

Test, rehearse, and go live

Functional, integration, and performance testing, plus mock cutovers that rehearse go-live inside your downtime window. Role-based training runs in parallel, followed by a formal sign-off gate, a rehearsed cutover with a dedicated war room, and hypercare written into the contract.

Build an AI-Ready ERP During Your AX Migration

An AX migration is the best moment to prepare for AI, because data, customizations, and processes are already being reworked. Copilot and agents in Dynamics 365 Finance and Supply Chain Management depend on clean master data, standard processes, and clear approval rules. Alletec puts those requirements in scope from the first assessment, instead of leaving AI for a later phase.

Clean data that AI can use

Duplicate customers, inactive vendors, and inconsistent item records weaken Copilot summaries and agent decisions. Cleaning data before the upgrade also shrinks the database, which Microsoft notes reduces both upgrade time and the storage component of your subscription cost.

Standard features in place of old customizations

Many AX customizations filled gaps that Dynamics 365 now covers natively. Retiring them keeps your system on the standard path, where Copilot features and agents work the way Microsoft designed them.

Copilot form day one icon

Copilot from day one

Features such as the Collections coordinator summary, the Workflow history summary, and Copilot-assisted demand plan analysis are configured and tested during the project. Finance and supply chain teams use them from the first day on Dynamics 365.

Agents with approval workflows

The Account Reconciliation Agent and procurement agents, currently in preview, run as configurable automation with approval workflows. The migration defines who reviews and approves agent actions before any agent goes live.

Custom agents on the MCP server

The Dynamics 365 Finance and Supply Chain Management MCP server gives agents built in Copilot Studio structured, secure access to F&SCM data and business logic. AX-era custom automations can be rebuilt as agents where that's the better fit.

For the full list of Copilot features and agents, see D365 Finance & SCM.

Migrate With Alletec: A Certified Microsoft AIM Modernization Center

Alletec is a certified Microsoft AIM Modernization Center. AIM (Accelerate, Innovate, Move) is Microsoft's program for helping qualified on-premises customers, including Dynamics AX customers, move to Dynamics 365 in the cloud. As an AIM Modernization Center, Alletec brings the AIM assessment, Microsoft-backed migration guidance, and Microsoft's current migration offer, Bridge to the Cloud 3, into every AX engagement.

AIM assessment

The first step in the AIM program. It maps the business outcomes of moving from AX to Dynamics 365 and defines your upgrade process, budget, and timeline.

Microsoft implementation support

AIM gives access to Microsoft's Success by Design implementation guidance and FastTrack services during the migration, with Alletec working alongside Microsoft's teams.

Bridge to the Cloud 3

Microsoft's current migration promotion runs from January 1, 2026, to December 31, 2027. Eligible on-premises Dynamics customers, including AX customers, get a 30% discount on qualifying Dynamics 365 online licenses for a fixed three-year term, with dual access rights to keep running AX while they migrate. Eligibility generally requires an active Enhancement Plan, so Alletec confirms yours during the assessment.

Learn more about Alletec's AIM Modernization Center.

AX to Dynamics 365 Migration Success Story

Spectraforce Logo

Spectraforce

IT and Consulting Services · USA

Dynamics AX → Dynamics 365 Finance and Supply Chain Management

Spectraforce, a US-based IT and consulting services company, migrated from Dynamics AX to Dynamics 365 Finance and Supply Chain Management with Alletec, opening wider opportunities to improve team performance.

Read the full case study

After Go-Live: Dynamics 365 F&O Support

Moving off AX starts a new operating model. Dynamics 365 Finance and Supply Chain Management receives regular service updates from Microsoft, so extensions, integrations, and agents need testing and care on a steady cadence rather than in multi-year upgrade cycles.

Hypercare to steady state

The hypercare team from your migration hands over to a named support team that already knows your extensions, integrations, and data.

Service update management

Each Microsoft service update is regression-tested against your extensions and integrations in a sandbox before it reaches production.

Continuous optimization

New Copilot features and agents are adopted as Microsoft releases them, and custom code is retired as standard features catch up.

Explore Alletec's Dynamics 365 Support Services.

Why Choose Alletec as Your Dynamics AX Migration Partner

Alletec brings Microsoft-verified credentials, including certified AIM Modernization Center status, a dedicated migration delivery center, and AX-era experience to every Dynamics AX to Dynamics 365 migration.

Full Stack Microsoft Partner Logo

Full Stack Microsoft Partner

Alletec has earned Microsoft Solution Partner Designation in all 6 solution areas validating full stack expertise across Business Applications, Data & AI, Azure Infrastructure, Digital & App Innovation, Modern Work, and Security.

Microsoft Inner Circle Partner

Alletec is a member of the Microsoft Inner Circle, representing the top 1% of Microsoft partners globally.

Microsoft FastTrack Partner

Microsoft FastTrack Partner

Alletec is a recognized Microsoft FastTrack partner, with direct access to Microsoft engineering during complex migrations.

Certified AIM Modernization Center

Certified AIM Modernization Center

Alletec is a certified Microsoft AIM Modernization Center, bringing Microsoft's AIM assessment and migration offers into every AX engagement.

25+ Years of Dynamics Heritage

25+ Years of Dynamics Heritage

Alletec has delivered Dynamics since the AX era, so version-specific AX quirks are familiar ground, not billable discovery.

AI-First Migration Methodology

AI-First Migration Methodology

Microsoft Success by Design with Hybrid-Agile layered in, and Copilot and agent readiness planned from the first assessment.

Ready to Move Off Dynamics AX?

Alletec brings 25+ years of Microsoft full-stack expertise, all six Microsoft Solution Partner Designations, and the Alletec Upgrade Factory to every Dynamics AX migration. Book a migration assessment, and a migration architect will review your AX version, customizations, and data, then recommend the right path to Dynamics 365 Finance and Supply Chain Management.

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Common Questions About Dynamics AX to Dynamics 365 Migration

No. Extended support for Dynamics AX 2012 R3 ended on January 10, 2023, and support for Dynamics AX 2009 SP1, AX 2012, and AX 2012 R2 ended on April 12, 2022. Microsoft no longer provides security hotfixes, non-security hotfixes, or regulatory updates for any Dynamics AX version.
No, but it's the direct successor. Dynamics 365 Finance and Supply Chain Management, formerly Dynamics 365 for Finance and Operations (D365 F&O), keeps AX's X++ foundation but runs in the cloud on Azure, receives regular service updates from Microsoft, and includes Copilot and AI agents that AX doesn't have.
Only from Dynamics AX 2012 R2 and AX 2012 R3. Microsoft supports a direct code and data upgrade from these two versions once they're on the latest cumulative update. AX 2009 and AX 2012 RTM move to Dynamics 365 through data migration or reimplementation.
Yes. Microsoft's AX 2009 Data migration tool (DMT) moves data from AX 2009 to Dynamics 365 finance and operations apps. AX 2009 code doesn't carry over, so business processes are rebuilt on standard Dynamics 365 functionality and extensions.
An upgrade converts your existing AX 2012 R2 or R3 code and database to Dynamics 365, keeping full transaction history and familiar processes. A reimplementation starts fresh on Dynamics 365 with redesigned processes and selected data. Upgrades carry less disruption, while reimplementations remove more technical debt.
AX customizations built by overlayering must be rebuilt as extensions, because Dynamics 365 doesn't allow changes to base code. Microsoft's code upgrade service converts AX 2012 code and reports the conflicts developers must resolve. Many customizations can be retired instead, because Dynamics 365 now covers those needs natively.
It depends on the path. An upgrade from AX 2012 R2 or R3 brings your full transaction history forward. A reimplementation usually migrates master data and open transactions, with history archived or moved to a data warehouse. Document attachments must be moved into the AX database before an upgrade to carry across.
Deprecated features are the most common blockers. Microsoft Learn states that AX 2012 systems using virtual companies or data partitions can't currently be upgraded. Microsoft's Upgrade analyzer identifies these and other deprecated features during assessment, which decides whether an upgrade or a reimplementation is the right path.
Timelines depend on your AX version, customization volume, data volume, integrations, and the path you choose. The Alletec Upgrade Factory delivers a fixed-price scope and a sprint plan with milestones at the end of the Analyze stage, so you have a real timeline before the build starts.
Migration cost depends on AX version, customization volume, data volume, integration touchpoints, and chosen path, plus Dynamics 365 licensing. Dynamics 365 Finance and Dynamics 365 Supply Chain Management each start at $210 per user per month, billed annually. The Alletec Upgrade Factory provides a fixed-price scope at the end of the Analyze stage, not an open-ended estimate
AIM (Accelerate, Innovate, Move) is Microsoft's program for helping qualified on-premises Dynamics customers move to the cloud. It includes migration assessments, Success by Design guidance, FastTrack services, and license offers such as Bridge to the Cloud 3, with eligibility that varies by customer. Alletec is a certified Microsoft AIM Modernization Center.
Most AX customers move to Dynamics 365 Finance and Supply Chain Management, the direct successor built for large, multi-entity, and complex operations. Dynamics 365 Business Central can fit smaller organizations whose AX footprint has become more than they need. A migration assessment compares both against your entities, volumes, and processes.
Alletec is a Microsoft Inner Circle and FastTrack partner with all six Microsoft Solution Partner Designations and 25+ years of Dynamics delivery. The Alletec Upgrade Factory runs AX migrations through Microsoft's Analyze, Execute, and Validate framework, with a fixed-price scope after the Analyze stage and hypercare written into the contract.