Dynamics 365 & Tenerife

What is “Tenerife”?

In October last year, Microsoft changed their ERP direction for Dynamics 365, and removed the branding split between Enterprise Edition and Business Edition.

Microsoft will continue to offer Dynamics 365 Sales, Marketing, Customer Service, and Field Service, which all offer parts of the functionality that was once available in Dynamics CRM. They will also continue to offer Dynamics 365 Finance and Operations, which is a rebranded version of Dynamics AX.

Between April and June 2018, Microsoft will now release a new product, currently branded Dynamics 365 “Tenerife”. This will be Microsoft’s cloud ERP solution for the SMB market, and will be a cloud-based version of Dynamics NAV.

What functionality will “Tenerife” have?

“Tenerife” will offer all the functionality currently available in NAV, including functionality that is currently in the Extended Pack, along with the ability to enhance functionality via ‘Extensions’ or ‘Apps’. Similar to a traditional Dynamics NAV enhancement, an App will change, or add to the existing functionality of the software. However, unlike a traditional enhancement, it will not affect the core code base. This means that as Microsoft roll out monthly updates to the “Tenerife” product, all worldwide users will be on the same code base, and able to update their core application. Apps will enable you to significantly extend the standard functionality of the product but do have some limitations and do not offer the complete capability of a traditional enhancement.

What about On-Premise deployments?

Following the release of “Tenerife”, Microsoft are planning to rebrand Dynamics NAV to be the On-Premise version of “Tenerife”. Both products will have the same code base, however the On-Premise version will offer the ability to do traditional enhancements. The ‘On Premise’ branding is a little misleading – you will still have the ability to have this version of the software hosted on Azure, as you currently do with NAV, it will just not be true Software as a Service (SaaS), as software upgrades will not automatically apply as they are released from Microsoft – these will still need to be applied by a “Tenerife” partner.


The Roadmap image below gives a good summary of the planned Microsoft direction. As soon as the “Tenerife” product is released, Fenwick Software will offer Apps, Implementation and Support services to anyone wishing to implement this product, and with our 20 years’ experience with NAV, will have an expert team to support your Dynamics 365 system.


  • Dynamics 365 “Tenerife” is the SaaS version of Dynamics NAV
  • Dynamics 365 “Tenerife” will be released before July 2018
  • Dynamics NAV will be rebranded to Dynamics 365 “Tenerife” ‘On Premise’ towards the end of 2018

Any Questions?

Contact us to talk with a consultant about “Tenerife” and the future of Dynamics NAV.


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