Which method is commonly used to connect Dynamics 365 with external applications?

The choice of REST APIs as the correct method for connecting Dynamics 365 with external applications hinges on the versatility and efficiency they offer. REST (Representational State Transfer) APIs allow for the seamless exchange of data between Dynamics 365 and external systems using standard HTTP methods like GET, POST, PUT, and DELETE. This enables real-time data integration, making it easier to manage transactions and application logic across different platforms.

Using REST APIs, developers can create applications that interact with Dynamics 365 in a highly flexible manner, allowing for CRUD (Create, Read, Update, Delete) operations on resources. Furthermore, RESTful services are lightweight, which suits many modern application architectures, including mobile and single-page applications. This method supports standard data formats like JSON, which are widely adopted for data interchange on the web.

In contrast, the other options are less effective for integration with external applications. Webhooks—while useful for event-driven architectures—are primarily designed for one-way notifications rather than direct data manipulation. FTP transfers also represent a more archaic method of data exchange, often involving file uploads and downloads rather than real-time integration. Manual data entry is not suitable for automated systems and can lead to errors and inefficiencies, particularly in larger datasets or high-traffic applications