The Case for Hosting Dynamics GP in Azure: Why You Should Move to the Cloud

By Paul Johnson | September 5, 2024

Dynamics GP to Azure Main

Moving your Microsoft Dynamics GP environment to Azure offers a unique blend of familiarity and innovation.

By transitioning to the Microsoft cloud through Azure you retain the trusted capabilities of GP while unlocking new opportunities for efficiency, security, and scalability. This move ensures your business stays agile and competitive in a rapidly evolving digital landscape.

Part 1: Why It’s Time to Move Dynamics GP to Microsoft Azure

This blog is part of a two-part series. In this part, we will break down why moving GP to Azure could benefit your business, compare the costs of moving or not, and address some key concerns clients often have about moving to the Microsoft Cloud.

Note: Stoneridge wants to assure clients who are comfortable operating Dynamics GP on-premises that we will continue to support them if they want to remain on-premises. Microsoft has released a support lifecycle for on-prem GP that extends to 2028.

GP Lifecycle

Addressing Common Questions and Concerns from Clients

Our experts work closely with many clients who operate Dynamics GP on-premises and see some consistent concerns come up. These issues can significantly impact day-to-day operations and long-term growth.

Below are some of the most common challenges these clients are facing:

  • Aging Infrastructure: Servers that are outdated and prone to breakdowns, often lacking reliable backup and disaster recovery plans.
  • Disorganized File Storage: Company files are scattered across various devices, making it difficult to organize, share, and access information consistently.
  • User Account Management: Challenges in simplifying user accounts, enforcing security policies, and monitoring activities for compliance and security.
  • Ransomware Threats: Growing concerns about ransomware attacks, particularly for clients without robust backup plans.
  • System Security: A desire to improve overall system security to protect data and networks from cyber threats and unauthorized access.
  • Technology Deficits: A need to assess and address technology gaps as businesses prepare to scale and grow.

If any of these concerns sound familiar, it might be time to consider cloud options like moving your Dynamics GP environment to Azure, where these challenges can be more effectively managed.

Why Move Dynamics GP to Azure?

GP Azure Cloud

Now that you have weighed the costs, you can analyze why switching to Azure can unlock many significant benefits that streamline your operations. Here’s why making the shift might be the right move for your business:

  • High Uptime Guarantee: Azure offers a 99.95% uptime guarantee, ensuring your systems remain accessible and unaffected by local power outages or other disruptions.
  • Scalability: Azure allows you to quickly scale resources to match your business needs. Whether you require additional data storage, more users, or increased processing power during peak seasons, Azure can accommodate these changes swiftly.
  • Risk Reduction: By moving to Azure, you reduce the risks associated with managing on-premise servers. Microsoft’s cloud platform handles the maintenance, security, and updates, giving you peace of mind.
  • Cost-Effective: Azure’s pay-as-you-go model ensures you only pay for the resources you use, making it a cost-effective solution that adapts to your business’s evolving needs.

The Costs of Staying On-Premises vs the Costs of Moving GP to Azure

When considering whether to keep your Dynamics GP infrastructure on-premise, it’s important to weigh the associated costs. These expenses can add up quickly and may impact both your budget and operational efficiency.

Summary of the Costs of Staying On-Premises:

  • Capital Expenses: The upfront costs for server hardware and licensing for new servers can be significant.
  • Operating Expenses: Ongoing costs include IT personnel to manage the servers, monthly server patches, and the physical security required to protect your server room.
  • Time Investment: The time required to purchase, update, and configure servers is often underestimated but essential to consider.
  • Hardware Maintenance: Expenses related to keeping servers running, such as switches and uninterruptible power supplies (UPS), add to the overall cost.
  • Depreciation: Servers may last around five years, but operating systems are often supported for a shorter period, necessitating further investments.

If these costs are starting to strain your resources, it may be worth exploring cloud options like Azure.

Cost Considerations Associated with Moving Dynamics GP to Azure:

When considering a transition to the cloud, it’s important to weigh the associated costs. While moving Dynamics GP to Azure brings numerous benefits, understanding the financial implications is key. Here’s a breakdown of the primary cost considerations:

  • Reduced Hardware and Software Expenses: Moving to Azure eliminates the need for physical servers and the associated costs of maintaining server rooms. This shift allows internal resources to focus on more value-added tasks rather than routine server maintenance.
  • No Additional Licensing Costs: Existing GP on-premise licenses transition smoothly to Azure, so there’s no need for additional licensing fees.
  • Upgrade Costs: While cloud-based upgrades can be completed more quickly, they do require some investment. This includes costs for internal data cleanup and testing, as well as partnering with a service provider to manage the technical upgrade.
  • Azure Consumption Costs: Running GP in Azure incurs monthly consumption fees for virtual machines that typically operate 24/7. However, costs can be reduced by opting for one-year or three-year reservations, which offer discounts. Nonprofit pricing is also available for eligible organizations.

By carefully considering these costs, your organization can make an informed decision about moving GP to the cloud, balancing the investment with the long-term benefits. Think about whether the costs of maintaining on-premises systems are less costly than moving to the cloud.

Unlocking Enhanced Benefits with GP in the Cloud

Upgrading Dynamics GP to Azure enhances your system's performance and optimizes the use of the entire Microsoft stack. Here's how this move benefits your organization:

  • Seamless Integration: By hosting GP in Azure, it's easier and more secure to install the Data Gateway within the same tenant. This integration allows for seamless connectivity with tools like Power BI, Power Apps, and Power Automate.
  • Automated Data Refreshes: With the Data Gateway, you can set Power BI to auto-refresh up to eight times a day, eliminating manual data updates and ensuring that your reports are always up-to-date.
  • Enhanced Productivity with Power Apps: You can use Power Apps to streamline processes like stock counts, enabling quicker and more efficient data entry directly into the GP system.
  • Flexible Workflows with Power Automate: Power Automate allows for more dynamic and versatile workflow approvals compared to standard GP workflows, integrating with external applications and messaging platforms like Microsoft Teams.

Moving GP to Azure allows your organization to fully leverage the Microsoft stack, driving greater efficiency, automation, and integration across your business processes.

Potential Alternatives to Moving GP to Azure

While converting Dynamics GP to Azure offers significant benefits, there are alternative solutions that might better suit your organization’s needs. Two key options to consider are Njevity’s

PowerGP Online and Microsoft’s Dynamics 365 Business Central.

Njevity’s PowerGP Online:

This option comes with several benefits, including:

  • Ideal for smaller companies with fewer than 10 users. For larger user bases, costs can become comparable to Azure.
  • Utilizes an RDP connection, eliminating the need for a VPN while maintaining the familiar GP interface.
  • Offers the Bring Your Own License (BYOL) option, allowing seamless continuation of your existing GP licenses.
  • Includes bundled ISVs like Rockton, as well as access to the PowerGP PowerSuite, which adds enhanced features for banking, financials, and more
  • Operates on a pricing model that involves an initial setup fee followed by a monthly subscription, making it a cost-effective solution for smaller businesses

Dynamics 365 Business Central:

When moving from GP to Business Central, you will maintain a similar functionality but open you and your team up to enhanced features that will streamline your workday.

  • Provides a fresh start with a scalable system, eliminating the need for server patching as Microsoft manages updates.
  • Offers 24/7 access from any device, coupled with the flexibility and customization supported by a large developer community.
  • Excels in manufacturing and distribution capabilities, and integrates seamlessly with external applications.
  • Access to Microsoft Copilot for Dynamics 365 Business Central
  • Leverages the Microsoft Power Platform, enabling powerful integrations and process optimizations.
  • Features subscription-based pricing, with promotions like Bridge to Cloud 2 offering GP users access to Business Central licenses at a reduced cost for the first three years.

Considering these alternatives, Njevity’s PowerGP Online and Dynamics 365 Business Central present strong options depending on the size and specific needs of your organization.

What to Expect in Part 2

In the next part of this blog, we will drill down into the specifics of some of the features and benefits outlined in this blog. You’ll learn how moving GP to Azure can improve the performance of your system and streamline work processes for your users.

Want to Learn More about Moving Dynamics GP to the Cloud?

As mentioned before, Stoneridge is here to support you no matter where you are at with Dynamics GP. Whether you are looking to move to the cloud or are looking for a partner that will proactively support your on-premises GP environment well into the future, Stoneridge experts can help.

Reach out to us today to book a free consultation and learn more.

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