News: The company has also introduced a new app store, which will help businesses find line-of-business SaaS apps.
The company believes that the move will make it easier for businesses to buy and manage their applications.
Microsoft Dynamics 365, which will be available starting this Autumn, will feature apps for functions including financials, field service, sales, operations, marketing, project service automation and customer service.
The new service has also been integrated with Office 365 to improve productivity and opportunities for collaboration.
It also comes with Power BI data visualisation and Cortana Intelligence embedded natively to help customers meet their business targets with predictive insights, prescriptive advice and further steps.
The company has also launched Microsoft AppSource, which will allow businesses to identify and try out line-of-business SaaS apps from Microsoft and its partners.
Currently, AppSource hosts over 200 business SaaS apps add-ins and content packs.
Microsoft Cloud and enterprise corporate vice president Takeshi Numoto said: "We imagine a better world for business users everywhere.
"One where you can track leads, automate field service, drive sales and improve operations using modern, mobile, enterprise-ready intelligent business apps from the cloud that are as easy to use as the consumer apps that help us all get rides, book rooms, listen to music and take actions to improve our health."
Bloomberg reported that Microsoft is seeking to boost growth of the business applications products by transferring them to the cloud.
The technology giant recently agreed to acquire LinkedIn, beating out a bid from cloud rival Salesforce.