Peter Linke
Nov 8, 2019 | Last updated: Jan 14, 2021
Insights | 3 min read

Microsoft has announced the development of a new project management software, Microsoft Dynamics 365 Project Operations, which will combine the strongest functionality of its three existing project management applications, Microsoft Project, Dynamics 365 Project Service Automation (PSA) and Dynamics 365 Finance, in one seamless end-to-end solution.

Project Operations will be a new Dynamics 365 offering and be based on the Common Data Service. Its release is scheduled for March 2020. [Update: General availability is now scheduled for 1 October, 2020.]

Status quo

Besides its market leading project management solution, Project, Microsoft’s product portfolio includes two more project management apps: Dynamics 365 Project Service Automation, which was specifically designed as an end-to-end solution for project based organisations, and Dynamics 365 Finance, an ERP solution that includes strong project financials capabilities.

This offering, however, caused confusion among users, who were unsure which solution was right for them. Additionally, the integration between the two apps as well as with Microsoft Project left much to be desired.

In response Microsoft has taken several actions. It announced the convergence of PSA and Project, and the reinvention of Project on the Common Data Service (the new Project has recently become available worldwide). It also combined the development teams for both Dynamics modules.

The new solution:

The newly announced Dynamics 365 Project Operations, a “best of” of Microsoft’s existing applications, is a logical next step of the changes already made. PSA serves as its basis, which due to it being built on Dynamics 365 Sales includes strong opportunity management capabilities.

This basis will be extended by the mature project planning functionality of Microsoft Project and time and expense tracking, revenue recognition and invoicing capabilities from Dynamics 365 Finance.

The PSA license will be sunset with the release of the new project management solution. A new license will be introduced in its place.

Organizations that are already using PSA will be able to easily upgrade to the new app when they are ready to do so. [Update: Learn more about what Project Operations means for PSA users.]

Your project management partner proMX

The announcement of Dynamics 365 Project Operations has not come as a surprise to proMX. As a member of the Inner Circle for Microsoft Business Apps and due to our status as one of the most accomplished PSA partners worldwide, we have a very close relationship with the Microsoft team in Redmond and have thus known about these plans for a while.

This week proMX CEO Peter Linke and our PSA specialist Sebastian Sieber attended Microsoft’s technology conference Ignite in Orlando, Florida, where Dynamics 365 PSA and Finance Lead, Gurkan Salk, introduced other partners to the company’s plans.

Upon the release of the new app, proMX will host two events to introduce businesses to the new product.

If you have questions about this upcoming change, our team will be glad to provide you with more information. Do not hesitate to get in touch with us.