Is it cheaper to just stay on Dynamics GP instead of moving to Dynamics Business Central (BC)?
Updated: Oct 14, 2023
Many customers struggle with the future-based SaaS model of how cloud software is billed. Customers using Dynamics GP pay maintenance once a year, in the form of an annual renewal.
When making the switch to cloud-based Dynamics, people get sticker shock over the SaaS-based model of Dynamics BC.
Customers fail to consider the importance of other factors to the SaaS-based model.
This blog will demonstrate the significant savings when moving to Dynamics 365 Business Central (BC).
Bridge to Cloud Promo
The first thing to consider is the Bridge to Cloud promo.
An offer was made to Dynamics GP and NAV clients, which are currently on maintenance, to provide discounted cloud licensing for three years.
The Bridge to the Cloud promotion is a multi-year path that can help you transition from your on-premises deployment of Dynamics 365 Business Central, Dynamics NAV, or Dynamics GP to Dynamics 365 Business Central online.
Existing Dynamics Price List (DPL) customers who have licensed Dynamics 365 Business Central on-premises, Dynamics NAV, Dynamics GP, or Dynamics SL can renew their Enhancement monthly through CSP and receive Dynamics 365 Business Central online licenses at a 40% discounted price.
Customers who enroll in this promotion can continue to use their on-premises product in parallel with Business Central online while maintaining Enhancement benefits on their on-premises license throughout the promo term.
The good news is that the promotion became available as of February 1, 2023, with qualifying customers will receive a 40% discount on licensing costs with a three-year moving period.
It’s still a great opportunity to upgrade to Business Central at a lower price point.
The Bridge to the Cloud promotion is targeted at customers who are committed to their cloud journey and intend to complete migration by the end of the promo term.
At the end of the promo term, enrolled customers will transition to CSP licensing and will no longer receive Enhancement benefits for their on-premises solution.
Promotion customers are entitled to dual access rights, meaning you can use your current ERP solution during the move and up until your promotion term ends.
This means that as you implement, customize, and test Business Central, you can still use your current ERP like normal.
Note that only one of these solutions can be live at a time, so while you continue to use your Dynamics GP, Dynamics NAV, or Dynamics SL solution, Business Central will only be available for testing.
Goodbye Hardware
Included in the low monthly costs of Business Central licenses is the replacement of almost all hardware.
With Business Central, you reduce the need for servers, networks, backups, file shares, and IT personnel to manage these items.
With Business Central, there are no RDPs, and no VPNs, all that goes away.
As an additional bonus, Microsoft is going to upgrade your Business Central environments twice a year with consistent patches for free.
This includes a long testing period in a free sandbox prior to selecting your upgrade window.
With one production environment and three sandboxes, the cost savings of that alone over years winds up in the tens of thousands for every customer.
All you need to access Business Central is a laptop, tablet, and/or mobile device.
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Total Cost of Ownership=Cost Savings Recognized
If you are currently on Dynamics GP, you need to do a cost calculation that includes: the salaries of your IT staff that mostly support and maintain Dynamics GP, the cost of support from your Dynamics GP partner, all the hardware and software purchases, and maintained to run Dynamics GP (may include hosting fees) and the cost of your annual renewal along with ISV renewals.
This will get you a real TOC (total cost of ownership assessment).
A true TOC should be done to your company what you are paying now versus the future, including all the hidden costs that come with maintaining and running Dynamics GP.
Some people are concerned about the SaaS model.
Sometimes clients are concerned that by going to SaaS, they must pay for the software for a lifetime.
But that life cycle includes a lifetime of benefits, including lots of annual savings and always being on the newest version of the software.
To those clients paying partners tens of thousands of dollars for an upgrade every year, the savings add up quickly.
Don’t forget the added benefit of no more hung or stuck batches---EVER!
Always Staying Current
Twice a year, all customers get a fully loaded new release of Business Central, which can be previewed up to 30 days before the major release.
It's a full-featured functional release. This includes dozens of pieces of functionality that software is going to come out with both from individual functionality, like general ledger, or supply chain, manufacturing, service, and jobs.
Other features can be about the development, the code, integration to more Office applications, or integration to other areas of technology.
Microsoft is fully vested and investing in adding lots of amazing features to the Dynamics 365 Business Central release with every update.
The best part, you can test these features prior to release and then schedule the date and time you want every upgrade to happen.
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Making The Move
The cost of implementation from Dynamics GP to Dynamics BC can be high for some partners implementing Dynamics BC.
Make sure you have a partner that knows both systems and can help provide a human evaluation of what it will take to move to the cloud (some partners are using “tools” to evaluate your system, which can miss critical parts of your business requirements).
Most of these partners do not have consultants who fully understand both systems.
Our team has done hundreds of these types of migrations, and we are highly experienced with both systems.
We are offering low-cost, flat-rate implementation packages from moving Dynamics GP to Dynamics 365 BC.
Our packages include a discovery to determine your business requirements and our packages start at $40,000.
Contact us today at: smullins@abccgroup.com for more information.
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