Microsoft Dynamics 365 Project Operations: The road to "the new PSA"

February 20 2020

On February 19th Microsoft announced the release of Microsoft Dynamics 365 Project Operations, the latest module of its suite of cloud business apps and the successor to its current project management app, Dynamics 365 Project Service Automation (PSA).

Dynamics 365 Project Operations is scheduled to become available in October 2020. Microsoft describes it as an end-to-end project management app that empowers service-based businesses to “win more deals, accelerate project delivery, and maximize profitability.”

Why another project management app?

Only a year ago, one would have thought that Microsoft has plenty of project management applications already. Its portfolio at the time included Microsoft Planner, Microsoft Project, Dynamics 365 Project Service Automation (PSA) and Dynamics 365 Finance & Operations (F&O).

These apps varied in complexity and scope, ranging from the basic task organizing with Planner to providing a bird’s eye view of projects financials in F&O.

However, abundance was part of the problem. Potential customers were confused which app met their needs as the differences between them were not as clear-cut as Microsoft made them out to be.

About Jelena Yaruchyk

Jelena Yaruchyk is Marketing Director of proMX, a Microsoft Gold Partner and a System Integrator for Microsoft Dynamics 365, Power Platform, and Azure. As an ISV, proMX has been distributing project management add-ons for Dynamics since 2008.

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lj89's picture

When should some one use Project Service over Project Operations and vice versa?
Whether Project Service capabilities are included in Project Operations under a new UI?

Antalena's picture

Hey LJ,
Project Operations connects the entire service-based organization, whereas Project is focused on project management and project portfolio management.
Project Operations will be available on Unified Interface.

janelleriley's picture

What will be the relationship between the new Microsoft Project that was released in Oct 2019 and the new Project Operations that will be released in Oct 2020? Is the Oct 2019 product release a predecessor of Project Operations? Or are they two completely separate things?

Antalena's picture

Microsoft Project and Microsoft Dynamics 365 Project Operations are two separate products. However, the former will be built into the latter since users wished for the project planning capabilities they were used from Project to be a part of the larger, end-to-end project management tool. However, Project will continue to be available independent of Project Operations. The October 2019 release of Project is not a predecessor to Project Operations. However, this incarnation of the product, i.e. it running on the Common Data Service, allows Microsoft to integrate it in Project Operations once that app becomes available later this year.

magic1949's picture

So this is yet another new license app to buy (with Service module spilt off split from Finance) and the psa component competing with project accounting, , but presumably finance is till needed, and presumably there are CDM costs as well .
How does this impact existing D365 f*O users who still haven't quite caught up with the split to Finance and SCM pricing?