Before jumping to the details on different sections, let's understand the terminology used in this chapter; update, upgrade, and migration are technically enabled by what version of Dynamics 365 for Operation your organization currently has.

• Update: We will use the term update as a process of keeping your Dynamics 365 for Finance and Operations, Enterprise edition up to date with latest releases. With new concepts, such as models and new programming model extensions, it is easier than ever for organizations to adopt continuous innovation from Microsoft. In the following section, we will explore in detail the process of updating Dynamics 365 for Finance and Operations to the latest version.
• Upgrade: The term upgrade is used when upgrading to Dynamics 365 for Finance and Operations from an earlier version of Dynamics AX 2012.  In this scenario, Microsoft supports the direct upgrade path by providing the tool set for code and data upgrade.
• Migration or re-implementation: The migration term is used when you are upgrading to Dynamics 365 for Finance and Operations, Enterprise edition from Dynamics AX 2009 or an earlier version. In this scenario, there is no code upgrade or data upgrade path. The customer has to re-implement the customization in finance and operations from scratch. Microsoft provides data migration tools to support data migration of configuration, master data, and open transactions from AX 2009 to Finance and Operations.

If you are planning to get the latest version of Dynamics 365 for Finance and Operations, it is important for you to know which option is applicable and which activities and efforts will be needed. Depending upon the type, the activities vary, skill sets vary, and tooling may also vary.

Let's explore the different upgrade types, which version they target, what is done in that upgrade types as well as its processing techniques in the following table:

As shown previously, the efforts vary significantly due to processing options, efforts, and activities involved when migrating to the latest version of Dynamics 365 for Finance and Operations. If you are already on an earlier version of Dynamics 365 for Finance and Operations, it's easier than ever to get the latest version. New architecture and technology stacks help to make the upgrade easier. Upgrading from AX 2012 will require code upgrades, and data upgrade processes and tooling is provided to help the upgrade process.

Code upgrades from an earlier version, such as AX 2009 or AX 4.0 are not supported; you need to re-implement your customization in the new version and do data migration to the extent of configuration, master data, and open transactions only. Re-implementation is similar in nature to a fresh implementation, as it would entail a number of milestones overall, with a standard fresh ERP implementation.

Let's now explore each of the update types involved in an upgrade, in the subsequent sections.