Who this is for
IT leaders, operations managers, and finance managers running Dynamics 365 who need to manage wave updates, customisation maintenance, and integration scaling.
Question this answers
How do we manage Dynamics 365's continuous updates and keep our customisations and integrations running smoothly?
What you'll leave with
- How D365's wave update cycle works and what to plan for
- Common customisation and integration issues
- When to use Power Platform vs custom development
- Key risks in complex D365 environments
Platform overview
Dynamics 365 is Microsoft's cloud ERP and CRM suite. On the ERP side, it covers Finance, Supply Chain Management, Business Central, and several specialised modules. On the CRM side, Sales, Customer Service, Marketing, and Field Service.
Unlike its predecessors (AX and NAV), D365 is cloud-first with continuous updates that Microsoft controls. You don't choose when to upgrade — Microsoft decides. Your job is to be ready for each release cycle.
For Australian businesses, this means treating D365 management as an ongoing process, not a one-time project. The platform keeps evolving, and your customisations, integrations, and processes need to keep pace.
Common version & support issues
Wave update pressure. Two major updates per year introduce new features, deprecate old ones, and occasionally change behaviour. If you're not testing before each wave update, you're gambling.
Deprecation cycles. Microsoft regularly deprecates features, APIs, and UI patterns. Customisations that rely on deprecated features will eventually break. The deprecation timeline is published, but many businesses don't track it.
Licencing complexity. D365 licencing is notoriously complex. Users often end up under-licenced (compliance risk) or over-licenced (wasted spend). Periodic licence reviews are essential.
Support tiers. Microsoft's standard support is adequate for basic issues but slow for complex problems. Many businesses need partner support for anything beyond basic configuration questions.
Upgrade and migration paths
Wave update management. Not a migration — but it is an ongoing upgrade process. Establish a testing cadence: preview in sandbox → test critical customisations → test integrations → validate reporting → approve for production.
Module expansion. Many D365 environments start with one module and grow. Adding Supply Chain Management to an existing Finance deployment, for example, requires careful configuration and data planning.
Power Platform integration. Extending D365 with Power Apps, Power Automate, and Power BI. Useful for simple scenarios but needs governance. Uncontrolled Power Platform sprawl creates its own maintenance headaches.
Custom application layer. For complex requirements that exceed Power Platform capabilities — customer portals, advanced reporting, AI-powered tools, high-volume integrations — custom web applications that connect to D365 via API are more robust.
Customisation & integration challenges
Extension model discipline. D365 uses an extension model for customisation — you build on top of the base, not modify it. This is safer than the old overlayering approach, but extensions still need testing against updates. Poorly written extensions can conflict with each other or with Microsoft updates.
Power Platform governance. Power Automate flows, Power Apps, and custom connectors can proliferate quickly without oversight. Common issues:
- Flows that exceed API throttling limits and fail silently
- Power Apps that become business-critical without proper testing or documentation
- Custom connectors that bypass security controls
- Data loss prevention policies that are too loose or too restrictive
Integration architecture. D365 offers multiple integration methods: OData, custom APIs, Data Entities, Dual Write, virtual entities, Power Automate connectors. Choosing the right method for each use case is essential — the wrong choice leads to performance issues, data sync problems, or maintenance headaches.
Third-party ISV solutions. The D365 AppSource marketplace has hundreds of add-ons. Each one adds a dependency that needs version compatibility testing during updates.
Risks and decision points
Key risks
- Wave update testing gaps
Skipping or rushing wave testing leads to production issues.
- Power Platform sprawl
Ungoverned low-code development creates unmanageable technical debt.
- Integration complexity
Each new integration adds maintenance overhead. Monitor and document all connections.
- ISV dependency
Third-party add-ons can lag behind Microsoft updates or be abandoned.
- Licence creep
Regular licence audits prevent compliance risk and wasted spend.
How HELLO PEOPLE can help
- Custom application development: Build web portals, customer-facing apps, and specialised tools that extend D365 beyond configuration
- Complex integrations: Connect D365 to external systems, APIs, and data sources using the right integration method for each use case
- Automation and AI: Build intelligent automation that goes beyond Power Automate's capabilities
- Reporting and analytics: Custom dashboards, data warehousing, and analytics that complement Power BI
- Wave update testing: Automated testing frameworks to validate customisations and integrations before each wave
Frequently asked questions
How often does Dynamics 365 get updated?
Microsoft releases two major wave updates per year (April and October), plus continuous monthly updates. Major wave updates introduce new features and can change behaviour. Monthly updates are smaller but still need attention.
Can we delay D365 updates?
For Finance & Operations, you can pause updates for up to 3 consecutive cycles (about 5 months), but you can't defer indefinitely. Business Central updates roll out automatically with limited deferral. Either way, you need a testing process.
What if an update breaks our customisations?
If your customisations use supported extension points, they should survive updates. If you've used unsupported methods (ISV solutions modifying base tables, JavaScript injection), they're at risk. Test in sandbox before each wave update.
Should we use Power Platform or custom development?
Power Platform (Power Apps, Power Automate) is great for simple workflows and basic apps. For anything requiring complex logic, high performance, or scale, custom development is more reliable. Many businesses use both — Power Platform for quick wins, custom development for core processes.
Can HELLO PEOPLE work alongside our Dynamics partner?
Absolutely. We handle custom applications, complex integrations, and automation — the work that sits outside standard Dynamics consulting. Your partner handles the D365 configuration and modules; we handle everything around it.
Key takeaways
- D365's wave updates are continuous — you need a structured testing process, not ad-hoc reactions
- The extension model is safer than overlayering, but extensions still need testing against updates
- Power Platform is great for simple tasks but breaks down for complex integrations or high-volume processes
- Integration sprawl is the biggest risk in mature D365 environments — document and monitor everything
- Don't customise what you can configure. Standard features are cheaper to maintain.