Janina Meier
Oct 1, 2020 | Last updated: Mar 5, 2023
Company News | 4 min read


Dynamics 365 Project Operations is a Professional Service Automation (PSA) app for project-centric service businesses. An end-to-end solution, it unifies all aspects of the project lifecycle in one software:

  • project sales
  • project planning
  • resource utilization
  • team collaboration
  • time and expenses
  • project accounting
  • business intelligence

The app addresses two major problems impacting success for project-centric organizations: disparate systems and data silos. Many organizations use a PSA and PPM system, CRM and BI, separate time and expense tracking and collaboration tools as well as an independent finance software. This can cause issues. For example, when sales hands over won deals to the project team, it may not have been briefed comprehensively and is thus not entirely clear about the customer’s expectations.

Task management in Dynamics 365 Project Operations

Project Operations unifies all facets of the billable project lifecycle in a single app. It lets project, resource, account and partner managers, CxOs, project accountants and team members all work in the same system and equips them with the right capabilities to drive success.

Recommended reading: What makes Microsoft Dynamics 365 Project Operations unique

Did you know? Project Operations can be expanded into a service-centric ERP system. Learn more about this aspect here: Microsoft Dynamics 365 Project Operations as a service-centric ERP system

Dynamics 365 Project Operations: Powering Service Organization Success

Project Operations was designed for project-centric service businesses. These organizations have been embracing digital transformation more rapidly than product organizations. Partly because they have recognized that they requirements are better served by cloud technology. They need to:

  • respond flexibly to changing business models
  • automate business processes
  • optimize workforce productivity
  • operate in a highly competitive market
  • win new customers
  • increase profit margins on projects

Dynamics 365 Project Operations provides businesses with the technology to enable superior customer experiences, accelerate project delivery, empower employees and maximize profitability.

The impact on Dynamics 365 Project Service Automation

To be able to provide such an application to service companies, Microsoft has created Project Operations by combining three of its existing project management solutions: Microsoft Project, Dynamics 365 Finance and Operations, and Dynamics 365 Project Service Automation.

This begs the question: What will happen to Dynamics 365 Project Service Automation (PSA)?

Upon the release of Project Operations on October 1, 2020, Microsoft has ceased the sale of Dynamics 365 Project Service Automation. However, organizations that have deployed the app will be able to continue to use it for up to four years:

  • until October 1, 2022 if in CSP or Web Direct, or until the end of their most recent contract, whichever occurs first
  • until October 1, 2024 for EA customers, or until the end of their most recent contract, whichever occurs first

All Dynamics 365 Project Service Automation licenses will have Project Operations added to their licenses. Microsoft will also offer a migration path to Project Operations.

Dynamics 365 Project Operations licensing

Dynamics 365 Project Operations is available as both a Base and Attach license. The Base license is $120 per user per month, the Attach license $30/user/month. As is always the case when two or more apps are used in combination, the more expensive app must be purchased as the Base license. (Learn more about the Dynamics 365 licensing model here: Microsoft Dynamics 365: The new licensing model explained)

There is also a Team Member app available for $8.

How can I learn more?

If Dynamics 365 Project Operations has awaken your interest, we are happy to tell you more about the app. You can:


Can Dynamics 365 be used for project management?

Yes. The Microsoft Dynamics 365 suite of business apps includes a solution called Dynamics 365 Project Operations that was developed for project management purposes. It combines functionalities for project planning, resource allocation, project control, time tracking and more in one application.

What are the capabilities of Dynamics 365?

The business applications of Microsoft Dynamics 365 help you to connect your business data, processes and teams. They comprise solutions for every business area such as sales, marketing, management or finances.

What is the difference between projects and operations?

A project describes a unique endeavor that has a specific beginning and end. Projects are carried out, for example, to develop a certain product or to reach a defined goal. Operations are recurring activities that have to be done for every project similarly, like production or accounting.