Dynamics 365 · Addons & Extensions
"Dynamics 365 addons" is deliberately broad as a search term — it covers four very different categories of extensions that get confused with one another in daily business. This page first sorts the field by terminology, then lays out the four categories (AppSource, custom solutions, own solutions, plug-ins), and finally presents three own solutions we have built on Microsoft Dataverse.
Terminology
The term "addon" is fuzzy in the Microsoft ecosystem — and that fuzziness leads regularly to misunderstandings in sales conversations. Anyone searching for a "Dynamics 365 addon" might mean, depending on their prior experience, at least four different things: a pre-installable app from the AppSource marketplace, an individual extension for their own processes, a partner-prepackaged industry solution, or a technical plug-in building block in the backend. All four are legitimate, all four are part of Microsoft's extension model — but they differ fundamentally in effort, license model, customizability, and lifecycle.
What all four variants share: they run in the same Microsoft Dataverse data space, they use the same Microsoft Entra ID identity, and they inherit the same security and compliance architecture as the Dynamics 365 standard modules. An addon is therefore never a "foreign system next to the CRM" — it is an extension building block in the same tenant. That's the central difference from classic third-party tools, which are connected via an interface to a CRM and bring along their own database, their own identity, and their own compliance world.
On this topic page we look at the four addon categories from three angles: what they are technically, when they make economic sense, and what to look for in selection. Then we present three own solutions we've developed on the platform — as concrete examples of the "own solutions from a Microsoft partner" category.
One last important point on terminology: "Dynamics CRM addons" is a frequent search synonym — historically coined when the CRM module was still marketed separately from the ERP world. Today, what was once "Dynamics CRM" has merged into the Dynamics 365 family — as Sales, Customer Service, Field Service, Project Operations, and Customer Insights. Addons for these modules follow the same extension patterns as addons for the ERP modules Business Central and Dynamics 365 Finance & Operations. So if you're searching for "CRM addons", the four categories on this page are the right place.
Four categories
The four categories differ in maturity, customizability, license model, and time-to-value. In the discovery conversation it pays off to clarify early which category actually fits the question — otherwise the rest of the discussion runs past each other on different mental pictures.
01 · AppSource marketplace apps
AppSource is Microsoft's public marketplace for business apps. Vendors upload their solutions, go through a certification process, and make them available worldwide for installation. Advantages: fast start (often within hours), clear pricing, Microsoft-validated scope. Limits: standardized functionality, limited customizability, dependency on the vendor's update rhythm. Typical use cases: document management, telephony integration, e-signature, Outlook templates, industry-specific accelerators.
License model: Often SaaS subscription per user (€5–€50 per month), occasionally one-time purchase, sometimes free with a Pro variant.
02 · Custom solutions
Custom solutions are individual adjustments for a single customer — designed, developed, and maintained for their specific processes. Advantages: maximum fit, full control over scope and roadmap, no external dependencies. Limits: highest effort, longest time-to-value, full maintenance responsibility. Sensible when processes are so specific that no AppSource app and no industry solution fits — or when a differentiating feature in the market is to be built.
License model: One-time development cost (€15,000–€150,000) plus ongoing maintenance. Power Apps licenses required depending on table usage.
03 · Productized solutions
Productized solutions are a hybrid: a partner develops once for a specific industry or use-case family and then installs the solution at multiple customers — each with moderate adjustments. Advantages: shorter implementation time than custom solutions, higher fit than AppSource apps, a clearly defined core. Limits: dependency on the single partner, customization budget must be planned. A common model in industry-specific CRM requirements where a partner has built up real expertise over multiple projects.
License model: Setup fee (€5,000–€25,000) plus monthly license per user. Power Apps license depending on architecture.
04 · Plug-ins & Power Platform components
Plug-ins are server-side code extensions that react to Dataverse events — when a record is created, updated, or deleted. Power Platform components include Power Automate flows, Power Apps components (PCF Controls), custom connectors, and webhooks. Advantages: deep platform integration, high performance, exact logic control. Limits: not a standalone product — plug-ins are always part of a larger customization. Typical use cases: complex validation rules, audit logic, real-time calculations, custom UI elements.
License model: No separate license — plug-ins run in the Dataverse sandbox. Effort is billed in the custom or productized project.
In practice, mature implementations often combine two or three of these categories — an AppSource app for e-signature, an own solution for the industry-specific processes, a plug-in for the critical validation logic.
arades productized solutions
From 20+ years of CRM practice, three reusable solutions have emerged that we run with multiple customers in production. All three run on Microsoft Dataverse, all three integrate into the existing Dynamics 365 tenant, and all three are deployable as a productized solution with a moderate customization budget.
Education & training
Model-driven app for universities, academies, training providers, and continuing-education institutes. Course management with module and schedule logic, participant tracking along the learning path, automated certificate generation, re-invitation routines for existing customers. In production use with multiple education providers in the German-speaking region.
View solution →
Associations & chambers
Model-driven app for professional associations, chambers, and unions. Member management with master data and membership history, multi-level contribution logic with discount and special rules, event management for conferences, seminars, and member meetings. In production use at a German-international business association.
View solution →
License math
Publicly available Microsoft license calculator at licenses.arades.de. Up-to-date prices for Microsoft 365, Microsoft Dynamics 365, and Power Platform with audience-group logic (Commercial, Non-Profit, Education, Frontline). Conceived as a lead magnet for our own license advisory and as evidence of platform depth.
View solution →
Each of these three solutions is a productized solution in the sense described above: developed once, deployed at multiple customers, with a clear customization corridor. Initial setup per solution from four to eight weeks depending on data migration from predecessor systems.
What all three solutions have in common: they sit entirely in the customer's tenant, they use standard Dataverse tables wherever possible, and they are packaged in ALM-compliant fashion — as a managed solution with clearly defined solution layers. That has practical consequences: if a customer decides after three years not to continue the solution with arades, the app remains in the tenant, the data remains in the Dataverse tables, and another engineering partner can pick up directly using the documented solution structure. That is not a given — many productized solutions are packaged in such a way that a partner change effectively means a re-implementation.
Which of the three solutions is worth a discovery conversation depends on industry and starting situation. The Education Institutes app is relevant for academies, universities, chamber-style education providers, technical continuing-education providers, and private training houses. The Associations and Chambers app fits professional associations, foreign trade chambers, chamber-like self-administration structures, and larger clubs with a paying member structure. The License Cost Calculator is not a classic customer project but publicly usable — as evidence of arades's own platform depth and as a practical tool for anyone wanting to work through Microsoft license math in their own setup.
Selection criteria
Six levers that in our experience decide between viable addon choices and expensive re-architecture loops. When comparing multiple addons or vendors — ask exactly these questions. Vendor-neutral wording, so you can also classify competitor answers.
01 · Data model integration
A good addon extends the existing Dataverse data model rather than replacing it — using standard tables like Contact, Account, and Opportunity wherever possible. Addons that create their own custom table for every concept lead long-term to data redundancies, reporting complexity, and license cost. Ask concretely: which standard tables are used? Which custom tables are added? How are the relationships modeled?
02 · Update strategy
AppSource apps and productized solutions are maintained by the vendor — with their own release rhythm, their own breaking changes, and their own migration paths. Clarify: how many updates per year? How are customer-specific adjustments handled? Is there a sandbox environment for update testing? Who bears the cost when an update overwrites an adjustment?
03 · License clarity
An addon can have its own license cost and additionally require Microsoft licenses — such as Power Apps Per User for custom-table access or Power Automate Premium for certain connectors. Total cost consists of addon license, additional Microsoft licenses where applicable, and implementation effort. An upfront license calculation prevents surprises.
04 · Privacy & hosting
AppSource apps can send data to external vendor endpoints even when installed in the Microsoft tenant — for their own cloud services or external authentication. Clarify: where is the addon backend server? Which data leaves the tenant? Is there a GDPR-compliant data processing agreement? Decisive for regulated industries.
05 · Customization corridor
Productized solutions and custom solutions differ in customizability — and even within the AppSource world, customization options vary widely. Clarify: what is configurable (fields, workflows, reports)? What is customizable only via the vendor? What can't be changed at all? When an addon fits "as is" 70% — it is often the wrong choice.
06 · Exit path
Vendors get acquired, solutions get discontinued, strategies change. A good addon stores its data in standard Dataverse tables or offers a documented export path. Ask: what does the data look like when the addon is uninstalled? Do records remain, or are custom tables deleted with it? Which migration paths are documented?
arades as your addon partner
arades GmbH is a Microsoft Partner since 2007 and has worked for over 20 years on the Microsoft CRM and Dataverse platform — from the CRM 3.0 world through CRM Online and Dynamics 365 CRM to today's Dataverse and Power Platform architecture. This platform depth makes the difference in addon architecture decisions.
We start every addon project with the data model, not the UI. Standard-table use, clean relationship architecture, granularity mapping between modules. Own solutions we build integrate into the existing Dataverse schema — not alongside it.
Education Institutes app, Associations & Chambers app, License Cost Calculator — three own solutions on Dataverse as evidence that we master the entire value chain: from the data model through the model-driven app to the plug-in for the critical validation logic.
Specialization on education providers (course and participant logic), professional associations (member and contribution models), and mid-market service firms (project operations, service management). Deep understanding of industry-specific process logic — no generic best-practice slides.
Before every addon project we calculate the license math openly: which Power Apps license is needed, which Dataverse capacity is consumed, which additional Microsoft licenses come into play. With our License Cost Calculator as a publicly available tool.
Solution layering, managed vs. unmanaged solutions, Azure DevOps pipelines for solution deployments, sandbox and test environments. Addon adjustments that aren't overwritten by base-product updates. Structured migration paths for custom tables.
arades is intentionally small — no corporate apparatus, no account-manager-to-delivery wall. You speak in the sales process with the same architects who will lead your addon project. Application Care at a predictable monthly flat fee for ongoing addon operations.
Have your own addon built
When processes are so specific that no existing addon carries them, the fourth variant comes into play: a custom-developed addon. For this, arades has a dedicated service page — with architecture, ALM discipline, quality gates, and fixed-price sprints.
Service page
Custom code, plug-ins, Power Platform components, custom UI on Power Apps Component Framework (PCF). From discovery spike to fixed-price sprint. With ALM discipline and handoverable code — no vendor lock-in via undocumented constructs.
View service page →
Before · Architecture
Before the first plug-in is written: data model sketch, solution structure, extension patterns, integration mapping. Architecture document as decision basis — one another engineering partner could continue from as well.
View service page →
Frequently asked questions
Dynamics 365 addons are extensions that sit on top of the standard platform — either as AppSource marketplace apps, as customer-specific custom solutions, as reusable productized solutions, or as plug-ins. All variants use the same Dataverse data space, the same identity, and the same security architecture as the standard modules.
AppSource addons are publicly available, Microsoft-certified solutions with standardized functionality — quickly installable but with limited customization. Custom solutions are developed for a single customer and reflect their specific processes. Productized solutions sit in between: a partner develops once and then deploys the solution to several customers with moderate adjustments.
AppSource apps are often free or billed per monthly subscription (typically €5–€50 per user). Custom solutions range from €15,000 to €150,000 one-time depending on scope, plus maintenance. Productized solutions often combine a setup fee (€5,000–€25,000) with a monthly license per user. Plug-ins are typically part of a larger customization and not licensed separately.
Only not if the addon exclusively uses tables within the restricted-tables list of a Dynamics 365 module. Once an addon introduces its own custom tables, custom entities, or Power Apps-specific functions, a Power Apps license is required (Per User or Per App). The license math is not trivial — upfront license advisory pays off.
Yes, that's a typical approach. When an AppSource app covers 80% of requirements, we add the missing 20% via our own customization layer — as additional tables, as a plug-in, or as a Power Automate flow. Important: we package the adjustments so that AppSource updates don't overwrite the custom layer.
Plug-ins are server-side code extensions that react synchronously or asynchronously to Dataverse events — when a record is created, updated, or deleted. They run in the Dataverse sandbox and are developed in C#. Power Automate flows are low-code automations with a visual designer. Plug-ins suit complex real-time validation logic, flows suit orchestrated multi-system processes.
Three own solutions on Microsoft Dataverse: the Education Institutes app for universities, academies, and education providers (course management, participant tracking, certificate generation); the Associations and Chambers app for professional associations, chambers, and unions (member management, contribution logic, event management); and the publicly available License Cost Calculator for Microsoft license math.
AppSource apps: one to five days for installation, configuration, and training. Productized solutions: four to twelve weeks — depending on customization needs and data migration from predecessor systems. Custom solutions: three to nine months for the initial implementation. Plug-ins as a single component: one to four weeks depending on complexity.
Further reading
Six follow-on topics in the order they typically become relevant after the addon decision.
Engineering overview of the full Dynamics 365 module spectrum — Sales, Customer Service, Field Service, Project Operations, Business Central, Contact Center.
Service page for custom code, plug-ins, Power Platform components, and PCF controls. When no existing solution fits.
Base/Attach logic, Copilot Credits, NCE mechanics. Which license for which addon scenario is needed — structured advice.
Discovery conversation, strategy workshop, architecture review — three formats for SMB and mid-market. Module choice, license architecture, roadmap.
How Microsoft Dataverse re-answers the architecture question — without island solutions, without an interface-maintenance hell. Strategy background for the addon choice.
Response under 4 hours, established Microsoft escalation path. For ongoing addon operations after go-live.
30 min · free · no obligation
Tell us about your plan — which processes the addon is meant to cover, whether an AppSource search has already run, what budget and timeline you have in mind. We listen, classify, and give an honest assessment — which of the four categories fits and what a realistic investment range would be. If another product fits better, we say so.
