Microsoft Cloud Licensing: Moving from GP to Business Central
If you are reading this, it likely means you are with an organization that runs Microsoft Dynamics GP and is seriously considering switching to the cloud.
As Microsoft’s roadmap for GP becomes clearer, businesses like yours are starting to evaluate what comes next when you finally leap and move to the cloud. Also, you might be thinking about how the transition to a solution like Dynamics 365 Business Central will affect everything in your business from day-to-day operations to licensing.
Unfortunately, licensing is one of the biggest areas of uncertainty for many organizations. Questions around cost, promotions, user licensing, and maintaining compliance can make an already significant business investment feel even more overwhelming.
The Good News About GP to Cloud Licensing: It Doesn't Have to Be Complicated
In this blog and video, we’ll help you understand where Dynamics GP licensing is today, what migration options are available, and how using the right partner – and the right licensing strategy – can help you significantly reduce costs and make your path to the cloud much smoother.
Where Dynamics GP Licensing Stands Today
Dynamics GP is still supported for clients who run it, but it’s important to know exactly what that means.
Essentially, Microsoft has moved GP into “maintenance mode”, which means existing customers can still renew enhancement plans, purchase additional user licenses, and continue to run their environments. However, new purchases of GP are no longer available, and perpetual licensing ended in April 2025. Additionally, subscription licensing has also come to an end for new customers.
So you can continue to operate as normal, but there are several upcoming dates that you will want to keep in your calendar:
- Enhancement plans end December 31, 2029.
- Tax and regulatory updates also conclude at the end of 2029.
- Microsoft support, including security updates, ends April 30, 2031.
As those dates approach, you will need to think beyond simply keeping GP running. Without security updates and Microsoft support, your business may encounter increasing compliance challenges, payroll concerns, security exposure, and reduced access to Microsoft resources when issues come up.
There is also a significant financial consideration. Enhancement costs have steadily increased over the years, rising from 16% to 20%. If you stay on GP, your maintenance costs will likely continue to grow while the product approaches the end of its support lifecycle.
Your Options Moving Forward
It’s not all doom and gloom, though! If you're currently running Dynamics GP, you have several paths available depending on where your organization is and what your immediate and long-term goals are.
The Short-Term Option
The first is simply staying on GP for the short term. If your organization isn’t ready to migrate, this is a viable option if Microsoft support continues. However, it is important to recognize that the closer the product gets to its end-of-support dates, the greater the risks.
The Hybrid Option
Some organizations may also choose to move their GP environment into Microsoft Azure. This essentially allows you to keep operating GP while hosting it in a cloud environment. While this modernizes infrastructure and secures the hosting environment, it doesn't extend GP's support lifecycle. The same Microsoft deadlines still apply.
The Long-Term (and recommended) Option
The long-term option, which is highly recommended by Microsoft, is moving from Dynamics GP to Dynamics 365 Business Central, which typically involves a total (but phased) move to the cloud. For organizations that aren't ready for the cloud, Business Central can also be deployed on premises. However, cloud deployments provide several advantages, including:
- Evergreen updates with the latest functionality and security improvements.
- Immediate access to new features as Microsoft releases them.
- Greater scalability, allowing organizations to quickly add users without lengthy provisioning.
- Migration incentives that can help reduce licensing and implementation costs.
Rather than treating migration as a single large project, many organizations are finding it easier to begin planning now while incentives remain available and timelines are still flexible. From there you can work with a trusted implementation partner with a proven process and migrate to the cloud at your own pace.
Bridge to Cloud 3: Making the Transition Easier
One of the biggest concerns clients have when they come to us is with how they are going to continue to run their business while the cloud migration is happening. From a licensing standpoint, that’s where the Bridge to Cloud 3 promotion comes in.
Perhaps the biggest advantage of the promotion is that you don't have to rush implementation or disrupt day-to-day operations. Teams can continue working in GP while their Business Central environment is configured, tested, and deployed.
Available through December 31, 2027, Bridge to Cloud 3 offers eligible Dynamics GP customers several additional, valuable benefits that make the transition significantly easier, including:
- A 30% discount on eligible Dynamics 365 cloud licenses for a fixed three-year term.
- Price protection throughout those three years, even if Business Central pricing changes.
- Dual-use rights, allowing businesses to continue using Dynamics GP while implementing Business Central.
- Continued flexibility to add GP or Business Central licenses during the migration as business needs evolve.
Like any Microsoft promotion, there are eligibility requirements. Organizations must be current on their GP enhancement plan and cannot have previously deployed Business Central at the same licensing level within their tenant.
Every environment is different, which is why understanding eligibility early can help avoid surprises later in the migration process.
How a Stoneridge Licensing Assessment Can Save Time and Money
Licensing isn't simply about purchasing the right number of users; it’s about making sure every license aligns with how your business operates.
At Stoneridge Software, our team offers a complimentary licensing assessment designed to evaluate your entire Microsoft licensing environment.
During the assessment, our licensing team evaluates several key areas, including:
- Compliance with Microsoft licensing requirements.
- Opportunities to eliminate unused or unnecessary licenses.
- Right-sizing user licensing based on employee responsibilities.
- Recommendations for Essentials, Premium, Team Member, or Device licensing where appropriate.
- Future licensing needs and technology planning.
A lot of organizations end up realizing that they are paying for licenses that aren’t even assigned to users. Others find that employees who currently have full licenses – that come with full license costs – only actually require Team Member functionality. This provides you with the opportunity for meaningful savings.
We take a holistic approach. In addition to reviewing and optimizing your Microsoft licensing, we can also look at your broader licensing environment and find you areas where you can streamline management and save money.
And the results can be significant. Recently, our licensing team uncovered approximately $400,000 in licensing overages for a client. We then helped them become compliant while saving a significant amount of money.
Don't Let Microsoft Licensing Slow Down Your GP to Cloud Journey
As more businesses make the move to the cloud, having a clear licensing strategy is becoming just as important as having the right ERP solution. If you're starting to plan your next steps, now is the perfect time to start the conversation.
Connect with the Stoneridge licensing team today and let us help make your move to the cloud simpler, smarter, and far less stressful.
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