Microsoft Dynamics 365 vs ERPNext
Side-by-side comparison of Microsoft Dynamics 365 and ERPNext — features, pricing, modules, and deployment options.
Microsoft Dynamics 365 vs ERPNext at a Glance
| Criteria | Microsoft Dynamics 365 | ERPNext |
|---|---|---|
| Best For | Mid-to-large companies in the Microsoft ecosystem | Small businesses and startups wanting free, self-hosted ERP |
| Starting Price | $70/user/mo | $0 (self-hosted) |
| Pricing Model | per-user | open-source |
| Deployment | cloud, hybrid | cloud, on-premise |
| Company Size | 251-1000, 1001-5000, 5000+ | 1-50, 51-250 |
| Implementation | 6–14 months | 1–3 months |
| Typical Cost | $150K–$1M+ | $0–$30K |
Module Comparison
| Module | Microsoft Dynamics 365 | ERPNext |
|---|---|---|
| Finance & Accounting | ★★★ Strong | ★★ Moderate |
| Manufacturing | ★★★ Strong | ★★ Moderate |
| Supply Chain | ★★★ Strong | ★★ Moderate |
| CRM | ★★★ Strong | ★★ Moderate |
| HR & Payroll | ★★★ Strong | ★★★ Strong |
| Project Management | ★★★ Strong | ★★ Moderate |
| Inventory Management | ★★★ Strong | ★★★ Strong |
| Procurement | ★★★ Strong | ★★ Moderate |
| Warehouse Management | ★★★ Strong | ★★ Moderate |
| Ecommerce | ★★ Moderate | ★★ Moderate |
| Business Intelligence | ★★★ Strong | ★ Basic |
| Quality Management | ★★ Moderate | ★★ Moderate |
| Field Service | ★★★ Strong | ★ Basic |
| Asset Management | ★★★ Strong | ★★ Moderate |
Pros & Cons
Microsoft Dynamics 365
Pros
- +Seamless integration with Microsoft 365, Teams, and Power BI
- +Modular — buy only the apps you need (Finance, SCM, Sales, etc.)
- +Strong field service and project operations modules
- +Copilot AI features across all modules
Cons
- -Per-app licensing can get expensive when stacking modules
- -Implementation complexity varies widely by partner
- -Customisation via extensions can become hard to maintain
- -Some modules (Commerce) still maturing
ERPNext
Pros
- +Completely free and open source (GPLv3)
- +Covers HR, manufacturing, inventory, CRM, and more
- +Easy to customise with Python and the Frappe framework
- +Active community with regular updates
Cons
- -Enterprise reporting is basic compared to paid ERPs
- -Self-hosting requires DevOps expertise
- -Fewer integrations than commercial ERP marketplaces
- -Limited partner ecosystem for implementation support
When to Choose Microsoft Dynamics 365
- You need an ERP best suited for mid-to-large companies in the microsoft ecosystem
- Your company has 251-1000 or 1001-5000 or 5000+ employees
- You operate in Manufacturing, Retail, Professional Services
- You prefer cloud / hybrid deployment
- Your budget aligns with $70/user/mo starting price
When to Choose ERPNext
- You need an ERP best suited for small businesses and startups wanting free, self-hosted erp
- Your company has 1-50 or 51-250 employees
- You operate in Manufacturing, Retail, Education
- You prefer cloud / on-premise deployment
- Your budget aligns with $0 (self-hosted) starting price
Frequently Asked Questions
Is Microsoft Dynamics 365 better than ERPNext?
It depends on your business needs. Microsoft Dynamics 365 is best for mid-to-large companies in the microsoft ecosystem, while ERPNext is best for small businesses and startups wanting free, self-hosted erp. Microsoft Dynamics 365 starts at $70/user/mo and ERPNext starts at $0 (self-hosted).
How does Microsoft Dynamics 365 pricing compare to ERPNext?
Microsoft Dynamics 365 uses a per-user pricing model starting at $70/user/mo, while ERPNext uses a open-source model starting at $0 (self-hosted). Microsoft Dynamics 365 typical total cost is $150K–$1M+ vs $0–$30K for ERPNext.
Which is better for manufacturing: Microsoft Dynamics 365 or ERPNext?
Both vendors serve manufacturing companies. Microsoft Dynamics 365 is typically chosen by 251-1000, 1001-5000, 5000+ employee organizations, while ERPNext targets 1-50, 51-250 employee companies. Consider your company size and specific module needs to decide.
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