Custom API vs Custom Action vs Azure Function: Dataverse decision

TL;DR AI
2 min readKey summary
For Dataverse operations, custom APIs are the preferred modern in-platform option for low-latency Microsoft stack calls.
Azure Functions are better for longer-running work or logic that depends on external systems.
Custom actions are mainly kept for legacy compatibility, not new development.
The decision matters because the wrong execution layer can add latency, raise cost, or limit scaling.
