Upgrading to Dynamics 365 Business Central vs Hosting Dynamics GP on Azure
If your business is running Dynamics GP as its ERP system, you are likely already aware of Microsoft’s recent announcement about the future of Dynamics GP.
At Stoneridge, we want to assure you that even though Microsoft is ending Dynamics GP support in 2031, we are here to support you and your Dynamics GP solution for as long as you want to use it. If you feel pressured to move to the cloud, know that partnering with Stoneridge will allow you to move at your pace or continue running GP.
GP Hosting on Azure or Dynamics 365 Business Central: Which Option is Better for You?
Moving to the cloud with either of these methods is a solid step in the right direction, even if they look different. In this blog, we will analyze the pros and cons of each, compare the two options, and lay out the benefits the cloud will have for your organization.
While there is no immediate rush to move to the cloud, understanding your options is key to figuring out a timeline and pace of change that works for your team. You can also reach out to our experts, who can help you assess your cloud preparedness and talk to you about your and your team’s thoughts on potentially migrating.
Upgrading from Dynamics GP to Business Central
The primary option you will hear about is upgrading from Dynamics GP to Dynamics 365 Business Central. This allows businesses to embrace a modern, cloud-native ERP system that is easily scalable and integrates seamlessly with the broader Microsoft ecosystem. For organizations looking to future-proof their operations and considering their long-term options, this would be the best choice.
Benefits of Migrating to Business Central
There are several pros you can use to make a case for completing a full switch to Business Central instead of hosting GP on Azure, including:
- Cloud-Native Design: Business Central is built from the ground up as a cloud-based ERP system. This means it takes advantage of modern cloud infrastructure and allows you to scale seamlessly as your business grows. It also facilitates easy mobile use, ensuring users can work anywhere on any device.
- Advanced Features: Business Central includes built-in AI with Microsoft Copilot, allowing for predictive analytics, forecasting, and automation of routine tasks. These advanced features enable you to make smarter, faster decisions while reducing manual workloads.
- Seamless Integrations: Business Central integrates effortlessly with tools like Microsoft 365 (Excel, Word, Outlook, Teams, etc.) and the Power Platform. These integrations create a unified technology solution that can be customized to your needs without using third-party solutions or external connectors. Working with Business Central also gives you access to integrations with over 6,000 apps in AppSource that you can use to fill technical gaps in your processes.
- Reduced Maintenance Costs: Using a Dynamics 365 ERP solution eliminates the need for costly software updates, server maintenance, data management, and security. This ensures your environment is always up-to-date, protected, and compliant with evolving regulatory requirements.
Challenges of Upgrading from Dynamics GP to Business Central
While your business would benefit tremendously from an upgrade to Business Central, there are also some things to keep in mind when deciding what is best for you:
- Migration Effort: Transitioning from GP to Business Central will involve an extensive data migration, which can be complex and time-consuming. This ensures no critical information is lost. Additionally, your staff members will have to learn an entirely new system, which requires time and effort away from their day-to-day work tasks.
- Initial Cost: Implementing Business Central has a higher up-front cost than maintaining GP. However, these costs can pay off through long-term savings and improved efficiency. Working with a partner to analyze your budget is a big part of determining your best option.
- Unfamiliarity with features: Chances are your business has been running Dynamics GP for a long time. This means some of its features, especially those with customizations, might not have counterparts in Business Central. When you upgrade, those niche functionalities may need reconfigurations, third-party add-ons, or custom developments to achieve the same functionality. This can complicate the transition process.
Essentially, upgrading to Business Central requires up-front effort and investment. However, its modern architecture, user-friendly functionalities, and advanced features will help you see long-term benefits that outweigh the initial hurdles.
Hosting Dynamics GP on Microsoft Azure
If you are looking for a more phased approach to moving to the cloud, want to stay with GP, or are concerned about budgeting for the upfront cost of switching to Business Central, cloud-hosting with Microsoft Azure is another option for you.
While it does not have all the new features and functionalities of Business Central, this method has several benefits, including enhanced security, reduced hardware costs, and the ability to scale as needed.
Benefits of Hosting Dynamics GP on Azure:
Here are the benefits of hosting Dynamics GP in Microsoft Azure when compared to Business Central:
- Familiarity: If you already use Dynamics GP, hosting it on Azure allows you to retain familiarity while still using the Microsoft Cloud. This method minimizes disruptions to your existing workflows and processes. It also maintains customizations, reports, and features specific to GP.
- Cost Control: By hosting Dynamics GP in Azure, you can avoid the significant cost of a complete ERP migration. This option is a cost-effective way to extend your solution’s lifespan while deferring the cost of moving to a fully cloud-based system like Business Central.
- Scalability: Like Business Central, the Azure cloud allows you to scale hosting resources up or down based on your needs without the process of acquiring or selling hardware. It ensures that the performance of your GP solution remains proficient while eliminating additional costs that come with maintaining servers.
- Security and Compliance: Like moving to a cloud-based ERP system, hosting GP in Azure gives you enterprise-grade security, including data encryption, advanced threat protection, data backups, and compliance. Additionally, Microsoft handles all of this for you, reducing the need for costly internal or external IT resources.
Challenges of Hosting Dynamics GP on Microsoft Azure
- Legacy Limitations: While GP is familiar to you, it is not designed as a cloud-native solution. Despite some cloud benefits, GP’s legacy architecture cannot fully work with modern cloud efficiencies. This can leave you at a disadvantage compared to businesses on Business Central.
- Maintenance: Microsoft handles your infrastructure through Azure, but you are still responsible for GP’s application-level maintenance. This includes software updates, patches, integrations, and customizations. These processes often require internal or external IT expertise, which can be costly and time-consuming.
- Cost Accumulation: Fees related to cloud hosting, IT and infrastructure maintenance, and licensing can add up over time and will likely surpass what you spend upgrading to Business Central.
- Feature Gaps: While GP is a great system that your team likely knows inside and out, it lacks the advanced tools available in Business Central like AI, automation, simpler integrations, and access to thousands of additional third-party apps you can’t access with GP. If you host GP on Azure, you may miss opportunities to innovate or enhance processes that will make the workday easier for you and your team.
If your goal is to stay on GP or move to the cloud in gradual phases, this would likely be the better option for you.
Key Considerations: Which Options Should You Choose?
Ultimately, you and your team know what option is best in the short and long term. Microsoft partners like Stoneridge are here to support you and will offer guidance along your cloud journey, but ultimately the decision on how to move to the cloud – if that’s what you want to do – is up to you. Here are some key things to keep in mind when developing a plan:
Ensure your team is ready
Your users power your business. That’s why consulting them and listening to their feelings on a potential move to the cloud is very important. Try to get a sense of where they are at with moving to the cloud and which option they are most comfortable with. From there, you can take their feedback and move forward with a plan.
Think about your timeline and goals
Are you thinking about a short-term cloud solution or a long-term cloud solution? The choice you make could depend on your answer to this question. Additionally, the goals you have for your business might also factor into your decision as each method has different ways of helping you achieve them.
Examine your finances and budget
If you want to move to Business Central, ensure you have the budget to handle the up-front costs. Similarly, if you want to host GP on Azure, ensure you plan your budget with the additional ongoing costs in mind.
With regards to the financial aspect of these two options, Microsoft currently has some opportunities for you to cut costs and save money during your implementation:
Bridge to the Cloud 2 Promotion
This promotion presents a unique opportunity to businesses operating on-premises solutions like GP that are current on their enhancements. If you are thinking of either hosting GP in Azure or upgrading to Business Central, you can save on licensing costs in multiple ways, including:
- A 40 percent discount on the licensing price
- The benefit of locking in their current rate for three years
- Dual access right to your GP environment for the duration of the promotion
Essentially, you can move to the cloud without any additional cost for at least three years. If you want to learn more about the licensing aspect of moving to the cloud, talk to our licensing team today for a free assessment.
Microsoft Assessments
The other cost-saving measure includes completing three Microsoft assessments. If you do this, you may gain access to some funding that can help you offset some of the cost of your migration and/or implementation.
Analyze processes and identify areas of improvement
Look at your current setup and ask yourself some key questions:
- Are there any processes you want or need to improve on?
- What would be the tangible benefits of improving on those processes?
- Can those processes be improved with GP customizations, or do you need something only accessible in Business Central?
- What features do you NEED now that you don’t currently have?
- What features do you WANT to have that you don’t have now?
- How important is AI-enablement when considering the future of work within your organization?
- Is it important for you to have more seamless integrations with the wider Microsoft ecosystem, including Microsoft 365 (Teams, Outlook, Excel, etc.) and the Power Platform?
- What is your team saying? Ask them about their workdays and where they would like to see areas of improvement.
Take a breath and relax
Although this step may not directly factor into a cloud migration, it’s important to stop and remember that the sky isn’t falling, and no alarm bells are ringing.
There is no immediate rush or pressure to switch to the cloud. You and your team can move at any pace that is comfortable for you. Take some time to learn more about the end of Microsoft support for Dynamics GP and consider what it means for your organization. Then, when you are ready, you can determine a plan forward.
No Matter Your Choice: Stoneridge is Your Full Software Solution Partner
Whether you want to move to Business Central, host Dynamics GP on Azure, or keep your GP environment on-premises, Stoneridge is here to assist you.
If you choose the cloud route, our experts will work with you every step to ensure you make the best choice for your organization now and in the future. We will also ensure that there are minimal disruptions to service while the transition takes place. We can help you analyze your current operations, find areas of improvement, and develop a roadmap for success.
From there, we will help you with licensing, manage costs, implement, and support your solution after it goes live. Stoneridge will also support your Dynamics GP system if you want to stay on-premises.
Contact the Stoneridge Experts to Start Your Cloud Journey
No matter which option you choose, Stoneridge has a team of experts ready to help you get the most out of your software solutions, whatever they may be.
Get in touch today to see what we can do for you.
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