It is official – Microsoft has announced an end of life date for Dynamics GP: September 2029. Which may sound far away but current GP users should start planning know in order to have a proactive, informed decision regarding their ERP strategy.
Evaluating whether to move from a legacy system like Dynamics GP to a modern, cloud-based solution like Microsoft Dynamics 365 Business Central is a complex decision, and one that will be different for each organization. It will require a tailored approach that accounts for the unique needs and complexity of your business to ensure long-term support and growth.
To help guide your thought process, here are key considerations if you are looking to transition to Business Central.
Transitioning from Dynamics GP to Business Central: 3 Key Considerations
1. GP Product and Security Updates
Microsoft has announced that product updates for Dynamics GP will end in 2028, with security updates continuing until 2031. This means compliance and product updates will stop in 2028, but security patches will remain available for three more years. Organizations using GP versions 18.x need to plan for these changes, as earlier versions are already out of mainstream support and only receive security updates. The end of updates could affect compliance with tax regulations and other critical business functions, making it essential for companies to develop a transition plan.
2. Microsoft’s Investment in Business Central
Microsoft is clearly shifting its focus towards Business Central, their mid-market ERP system. This is evident not only in the end-of-life announcement for GP but also in the increased investment and development efforts directed towards Business Central. Consequently, many Independent Software Vendors (ISVs) and add-on product providers are also shifting their focus to Business Central. This trend suggests that the ecosystem around GP will gradually diminish, potentially leading to higher maintenance costs and reduced support options for GP users.
3. GP Labor Crunch
Another significant factor is the emerging labor crunch within the Dynamics space. With Microsoft steering users towards Business Central, there is growing demand for expertise in this platform. At the same time, the pool of professionals skilled in GP and other legacy systems like SL and NAV is shrinking. This could lead to challenges in finding qualified personnel to support and maintain GP systems. Therefore, having a well-thought-out transition plan is crucial not just for software but also for ensuring access to necessary human resources.
Three Paths Forward
Organizations planning their next steps three strategic paths to consider.
- Lift & Shift: transition to Business Central while maintaining existing processes and configurations, ensuring a smooth and efficient migration.
- Process Redesign: use this transition as an opportunity to revisit and optimize business processes, aligning them more closely with current organizational needs and leveraging the capabilities of Business Central.
- Defer Migration: some organizations may choose to remain on GP for as long as feasible, making incremental updates and adjustments to mitigate risks associated with the end-of-life timeline.
To assist organizations in this transition, companies like Kopis are investing in innovative tools and resources, like migration calculator designed to provide a preliminary assessment of what a move to Business Central might entail. This calculator asks a series of questions, taking approximately 5-10 minutes to complete, and offers a rough estimate of the potential investment required. This initial step is crucial for organizations to understand the financial and operational implications of such a move, enabling them to plan more effectively.
In addition to the calculator, Kopis and its partners, including Microsoft, offer more in-depth assessments. These mini-assessments dive deeper into the specific requirements and potential costs associated with migrating to a new environment. This comprehensive analysis provides a clearer picture of what the transition would look like, helping organizations make more accurate and informed decisions. For simpler configurations, a straightforward migration might be feasible, while more complex scenarios may require a detailed assessment to mitigate risks and ensure a smooth transition.
Timing Your Transition
Organizations must consider various triggers, such as licensing renewals, budgeting cycles, and seasonality, to determine the optimal time for migration.
- Simple migrations, like a Lift & Shift typically take 2-3 months
- Medium complexity migrations 4-6 months
- Highly complex migrations 7-12 months
By aligning the migration timeline with organizational schedules and financial planning, businesses can minimize disruptions and maximize the benefits of the new system.
When it comes to timing, you should also consider the time required from your internal team throughout the migration process. Two big areas organizations overlook are time for acceptance testing and stakeholder involvement.
The discovery and assessment phases require input from key stakeholders to ensure that the new system meets the organization’s needs. Acceptance testing is crucial to confirm that the platform functions as expected before going live. This approach helps mitigate risks and ensures a successful transition to Business Central, with ongoing support to keep the system up-to-date and aligned with business objectives.
The end-of-life announcement for Microsoft Dynamics GP necessitates strategic planning and decision-making. Organizations must understand the timeline, assess compliance and security impacts, and consider market trends to transition smoothly to Business Central or another suitable ERP solution. Utilizing tools like migration calculators and conducting in-depth assessments will clarify potential costs and benefits. Timing the migration appropriately and involving key stakeholders are crucial steps for a successful transition. With the right support and resources, businesses can navigate this change effectively, ensuring compliance, security, and long-term success in a dynamic ERP landscape.
