Microsoft Dynamics 365 CRM out into the market and to use new features like field services etc, you have to upgrade online CRM to 365. Upgrading online CRM is very confusing as users have not full control over instance and have fear to lose data or customizations. To give Dynamics CRM upgrade a clear view you can refer this article.
With most Microsoft products this is pretty easy to setting up, but Dynamics has a more heavier requirements list.
The prerequisites include:
• Windows Server
• Active Directory (yep you’ll need to setup a domain controller)
• SQL Server Server 2012/2014
• Reporting Services 2012/2014