Every business running an older version of AX, NAV, or GP eventually hits the same fork in the road.
You can patch and maintain what you have, or you can modernize. But the big question executives keep asking is: how?
To explore the options, we’ve framed this discussion as a Q&A with a fictional CIO who’s wrestling with modernization decisions. The answers reflect what many leaders are finding in practice as they move toward extension-based customization in Dynamics 365.
Q: What’s wrong with the customizations we already have?
For years, the standard way to adapt Microsoft ERP was through over-layering custom code. It worked, but it also meant every upgrade became a nightmare. You couldn’t just apply Microsoft’s latest release; you had to rebuild or re-test customizations to make sure nothing broke. That left many companies stuck on outdated versions far longer than they should have been.
With extension-based customization in Dynamics 365, that problem fades. Instead of modifying the core code, you build extensions that sit alongside the standard application. Upgrades pass through cleanly because the core remains untouched, while your extensions keep running as designed.
Q: What does that look like for the business?
Think of it this way: in the old world, customizing Dynamics was like altering the foundation of a building. Any renovation required tearing things apart to see if it still held. With extensions, you’re adding rooms to the side of the house. The structure stays intact, and you still get the functionality you need.
For executives, this translates to faster adoption of Microsoft’s evergreen updates, less downtime, and far fewer surprises during upgrade cycles. Finance teams stay compliant because security updates land on time. Supply chain teams get access to new functionality when it’s released, not years later.
And this is where Nigel Frank makes a difference. By connecting you with Dynamics 365 developers and architects who specialize in extension-based customization, you can modernize without losing the features your business relies on.
Q: How does this approach support cloud migration?
Executives often hesitate about migrating AX, NAV, or GP estates because of the mountain of customizations sitting in their on-prem systems. Moving those workloads to the cloud feels risky and expensive.
But extension-based development changes the calculus. Instead of carrying over years of hard-coded changes, businesses can assess which customizations actually deliver value and rebuild them as extensions. That streamlines the migration, cuts down technical debt, and ensures the new environment is easier to maintain.
It also aligns perfectly with Microsoft’s evergreen update model. Once you’re on Dynamics 365 Finance & Operations or Business Central with extension-based customizations, you stay current without the cycle of disruptive re-implementations.
Q: Does it limit flexibility?
That’s a fair concern, but the short answer is no. Extension-based customization still gives you freedom to tailor Dynamics to your industry and workflows. You can add fields, design new forms, integrate with third-party systems, or automate processes unique to your business.
The real difference is that extensions rely on supported APIs and event handlers rather than editing the core code directly. That keeps the door open for innovation without locking you into brittle, one-off solutions that collapse at the next upgrade.
Q: What’s the impact on talent needs?
Here’s where leaders need to plan ahead. Developers who understand extension-based approaches are in demand and hiring them takes time. According to Nigel Frank’s Microsoft Cloud Careers and Hiring Guide, it takes more than six months on average to fill a Microsoft cloud role. That means organizations waiting until the last-minute risk stalled migrations and delayed go-lives.
By acting early, you secure the expertise needed to modernize while competitors are still scrambling for scarce talent. Nigel Frank has a global network of Dynamics 365 professionals ready to help organizations make this transition smoothly.
Q: What should executives do next?
The best next step is an audit. Map out your current customizations, decide which ones are essential, and identify areas where out-of-the-box Dynamics 365 already delivers what you need. Then build a phased plan for reworking critical customizations into extensions.
For many leaders, the shift to extension-based development is not just about technology. It’s about reducing risk, aligning with Microsoft’s future roadmap, and ensuring their ERP investment doesn’t become another legacy system in waiting.
Wrapping it up
Extension-based customization might sound technical, but the business implications are straightforward: faster updates, lower costs, fewer risks, and a platform that evolves with you rather than against you.
The companies getting this right aren’t the ones holding onto old ways of building. They’re the ones preparing now for a more sustainable, flexible, and future-proof approach to Dynamics 365.
