Let me start with a story…
A few months ago, I was working with a customer who was planning to implement Dynamics 365 ERP. Their approach was structured, predictable, and heavily dependent on LCS (Lifecycle Services). Every environment - DEV, Config, Data migration, SIT, UAT, PROD- was planning to deploy with muscle memory.
Then came the shift.
Microsoft introduced the Power Platform Admin Center (PPAC) as the new control plane for managing environments. And suddenly, the familiar LCS-driven deployment approach started fading away.
The customer asked me a simple question:
“Rakesh, how do we now deploy environments the right way using PPAC with and without demo data?”
Understanding the New World: PPAC-based Deployment
With PPAC, environment provisioning is:
More unified across Power Platform + ERP
More governed
More aligned with low-code/no-code extensibility
Less dependent on traditional LCS workflows
However, for Dynamics 365 Finance & Operations (F&O), we still need to carefully plan environment topology.
Typical Environment Strategy in D365 ERP Implementation
Before jumping into steps, let’s define the environments and their purpose:
Environment | Purpose | Demo Data Required |
DEV | Development & Unit Testing | Yes |
Config | Functional configuration | No |
Data Migration | Data validation & migration | No |
SIT | System Integration Testing | No |
UAT | Business validation | No |
Production | Live operations | No |
Step-by-Step Guide to Deploy Environments via PPAC
Step 1: Access Power Platform Admin Center
Navigate to:
https://admin.powerplatform.microsoft.com
Step 2: Create a New Environment
• Navigate to Left side menu pane and click on “Manage”
• Go to Environments → + New
• Provide:
Name
Make this a Managed Environment -> Yes (optional)
Group -> None
Region
Type (Sandbox / Production)
Enable “Add a Dataverse data store?” (Yes - required)
Pay-as-you-go with Azure? (In case Azure subscription is being) Optional
Click on Next
Tip:
• Use Sandbox for DEV, SIT, UAT, Config, Data migration etc.
• Use Production only for PROD
Step 3: Add Dataverse
• Provide:
Security group - > None (This setting varies based on Customer Security guidelines)
Enable Dynamics 365 apps? - > Yes
Automatically deploy these apps -> None
Click on Save
After environment creation:
Select the newly created environment
Navigate to Resources → Dynamics 365 apps
Click Install App
Select “Dynamics 365 Finance and Operations Platform Tools” & click Next
Click Install
Step 4: Install “Dynamics 365 Finance and Operations Provisioning Ap” (With or Without Demo Data)
This is a critical decision point.
Option 1: Deploy WITH Demo Data (Contoso)
Used for:
Benefits:
Pre-configured legal entities
Sample business processes
Faster onboarding for developers & testers
After Platform tools installation:
It will redirect to another page:
Select “Enable Developer tools for Finance and Operations” ( In case of Developer Environment)
Select “Enable Demo Data for Finance and Operations”
Select the version of the product
Select “I agree to the terms of service”
Click on Install
Option 2: Deploy WITHOUT Demo Data
Used for:
Config
Data Migration
SIT
UAT
Production
Benefits:
It will redirect to another page:
Select “Enable Developer tools for Finance and Operations” (In case of Developer Environment)
Deselect “Enable Demo Data for Finance and Operations”
Select the version of the product
Select “I agree to the terms of service”
Click on Install
Key Considerations (Lessons Learned) From real implementations:
Avoid Overusing Demo Data Demo data is helpful-but: • Can confuse business users • Adds unnecessary cleanup effort
Separate Config & Data Migration Many projects combine them-this is risky. 👉 Keep them separate for: • Better control • Easier rollback
Governance via Security Groups Always:
• Assign environments to security groups
• Control access centrally
Naming Convention Matters Example: • D365-DEV • D365-CONFIG • D365-UAT • D365-PROD
Final Thoughts
The move from LCS to PPAC is not just a tool change- it’s a mindset shift.
As Solution Architects, we must:
• Rethink environment strategy
• Align with Power Platform governance
• Design environments for scalability and clarity
Because in the end…
A well-planned environment strategy is the backbone of a successful Dynamics 365 ERP implementation!
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