What Does Microsoft Dynamics 365 Mean for Existing Dynamics ERP Users?

Microsoft Dynamics GP, Microsoft Dynamics SL, Microsoft Dynamics NAV and Microsoft Dynamics AX are core Microsoft products that have been around for decades. Dynamics 365 does not signal the end of these products, nevertheless, the question is there for existing users: What does Dynamics 365 mean for my existing Dynamics solution?

There have been recent improvements to the Microsoft Dynamics ERP products, especially moving them to a web-based application on Microsoft Azure and now, Dynamics 365. That momentum to the cloud shows that the bulk of Microsoft's research and development is going into Dynamics 365. Microsoft has placed some pricing incentives for current customers to move to Dynamics 365, but you will still need to determine if it's the right path for you.

Microsoft Dynamics GP, Microsoft Dynamics SL and Microsoft Dynamics NAV will continue in product development and support. Microsoft has developed migration paths from Microsoft Dynamics AX to Dynamics 365 and there is a Dynamics 365 product roadmap for the transition of Microsoft Dynamics GP and Microsoft Dynamics NAV. In addition to Microsoft's support of each product, Tribridge will continue providing customer care and support for existing Dynamics customers. You can rest assured, that is not going away any time soon.

Licensing Dynamics 365 vs. On-Premise Dynamics ERP Solutions

As compared to on-premise Dynamics ERP solutions, the licensing type is different for Dynamics 365. The model changes from purchased software to a SaaS license which enables companies to think of their software as an operational expense versus a capital expense. It is also much simpler for users to access. A Dynamics 365 user license gets you access to everything your Dynamics 365 solution includes instead of having to purchase separate licenses. There are licensing tiers so that if you don't need something like Field Service, you don't need to pay for it, or you can choose an all-inclusive license that includes everything for one price.

Should you make the move to Dynamics 365?

Not all companies should worry about making the move to Dynamics 365 right away, but some will realize some big advantages. Are you satisfied with your current solution? Is it still meeting business requirements and continuing to provide a good return on investment? If so, then you might be just fine where you are today.

However, if you have expanded your business, your business model has changed, or you are growing at a fast rate, it's a good time to consider Dynamics 365. Microsoft Dynamics NAV, Microsoft Dynamics GP and Microsoft Dynamics SL scale well from 5 to 10 users to 250. When you get into 500+ users, then you need the horsepower of Dynamics 365 or Microsoft Dynamics AX because of its architecture.

Cloud vs. On-Premise

If you are currently on premise, and want to reduce your IT footprint, consider a cloud or SaaS system to minimize your dependency on IT. The costs to purchase, operate and maintain an internal server-based environment—from the staff it takes to support it to the cost of the hardware and software—can be virtually eliminated with cloud architecture. Another option is to partner with a company like Tribridge that provides outsourced managed services for your ERP systems and IT environment. This works best for companies that don't have internal IT support on staff to manage daily updates, backups, provide new reports, maintenance, hotfix updates, etc.

If you have more questions on what Dynamics 365 means for your business, and whether or not you should make the move, sign up for our Dynamics 365 Assessment today.

Next Post