What’s the difference between a hotfix, cumulative update, Service Pack, and Feature Pack?

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Hotfixes:
  • A hotfix is created to address a specific issue, problem, or customer scenario.
  • A hotfix can address either a single issue or a cumulative set of issues.
  • Hotfixes are distributed only to those customers, partners, and organizations that Microsoft technical support personnel determine can benefit from the changes that are made to the code.
  • Each hotfix includes documentation that indicates what files, tables, code, or functions are changed by the hotfix.

Cumulative updates:
  • A cumulative update (CU) is an update that contains all previous hotfixes to date.
  • Additionally, a CU contains fixes for issues that meet the criteria for hotfix acceptance. These criteria may include the availability of a workaround, the effect on the customer, the reproducibility of the problem, and the complexity of the code that must be changed.
         
Note: Any hotfixes that you previously applied are not included in a cumulative update are lost after you install the cumulative update. You must reapply those hotfixes after your installation.


Service packs:
  • A service pack is a tested, cumulative set of all hotfixes and updates.
  • Service packs may also contain additional fixes for problems that have been found internally since the release of the product, and a limited number of design changes or features that were requested by customers.

Feature packs:
  • A feature pack is a group of updates that relate to a feature area or group of functionalities.
  • Feature packs contain design changes or features that were requested by customers, and may also contain additional fixes for problems that have been found internally since the release of the product.

Microsoft security patches: 
  • These are intended to solve certain security loopholes and problems, while at the same time upgrading any existing security features.
  • This would provide better protection by reducing vulnerabilities in security.
IMP: Security patches can be downloaded from here.
Remember: We do not need install all CU, SP, Hotfixe etc. only need to install latest one.

Ref: https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/apply-updates-and-hotfixes?redirectedfrom=MSDN#feature-packs

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