As a business leader, you constantly seek ways to reduce costs and increase productivity. But you may leave money on the table if you still use Dynamics GP. What if you could trade outdated software for a modern, cloud-based solution to save time and money? Business Central offers a compelling alternative to GP, but is it worth the investment? This blog explores the financial benefits of switching from GP to Business Central and why it is a smart move for your business.
Benefits of migrating from GP to Business Central
Lower infrastructure costs
Dynamics GP often requires significant investment in on-premises hardware and servers, including initial purchase, ongoing maintenance, upgrades, and energy consumption. In contrast, cloud-based Business Central, hosted on Microsoft Azure, eliminates the need for costly hardware. Shifting to the cloud means no longer worrying about server maintenance, data backups, or hardware failures, which can be expensive and time-consuming.
Cost breakdown
- Initial setup: Dynamics GP is an on-premises solution that requires a substantial upfront investment in servers and infrastructure. Business Central operates on a subscription model and distributes costs over time.
- Maintenance: On-premises hardware requires regular, often costly maintenance, whereas cloud solutions include maintenance within the subscription fee.
- Energy costs: The energy required to run and cool servers can lead to high bills, which are avoided with cloud-based solutions.
Reduced IT maintenance and support costs
With Dynamics GP, businesses typically need a dedicated IT team to manage the system, perform updates, and address issues that result in ongoing expenses. Business Central is a software-as-a-service (SaaS) solution that includes automatic updates and maintenance within its subscription to help your IT team focus on strategic initiatives rather than routine upkeep, lowering staffing costs.
Scalability and flexibility
Pay-as-you-go model
As your business grows, you can effortlessly expand your Business Central subscription to support more users or additional features. This flexibility ensures that you only pay for the resources you need when needed, which means Dynamics 365 BC provides greater scalability than Dynamics GP. In contrast, scaling an on-premises solution like Dynamics GP often involves significant investments in extra hardware and software licenses.
Seasonal adjustments
For businesses experiencing seasonal variations, Dynamics 365 allows you to modify your subscription according to current demand and helps you avoid unnecessary costs during slower periods.
Enhanced security and compliance
Security infrastructure
Data security is a priority for every business. While Dynamics GP requires you to manage your security—which can be complex and costly—D365 Business Central benefits from Microsoft’s robust security infrastructure. This includes enterprise-grade security protocols and compliance tools. Under this shared responsibility model, Microsoft takes care of many critical security aspects to ease the burden and reduce costs.
Compliance
Business Central is built to help companies comply with various regulatory standards, such as GDPR. This simplifies compliance management and helps mitigate the risk of non-compliance penalties.
Remote work
Business Central’s cloud-based design offers superior accessibility and collaboration capabilities. Employees can access the system from anywhere with an internet connection on any device. This flexibility supports remote work and enhances productivity and collaboration across your organization. Teams can access and update data simultaneously, ensuring everyone is equipped with the latest information. It also integrates with Microsoft Teams and SharePoint, facilitating uninterrupted communication and easy document sharing.
In contrast, Dynamics GP, as a primarily on-premises solution, lacks this level of accessibility and potentially limits your team’s ability to work from various locations. Collaboration requires complex setups like VPNs, restricting access and causing delays. Data updates aren’t always instant, leading to miscommunication and inefficiencies.
Automatic updates and innovation
Continuous improvement
A significant advantage of Dynamics 365 Business Central is the automatic delivery of regular updates from Microsoft, which ensures your system is always current with the latest features and security improvements. This reduces the need for manual updates and minimizes system downtime, unlike Dynamics GP, where updates often require manual processes that can disrupt operations.
Lower Total Cost of Ownership (TCO)
Economic impact
Business Central typically proves more economical when evaluating the total cost of ownership. A 2023 Forrester study found that organizations using Business Central saw a 12% reduction in TCO and a 45% reduction in administrative expenses. These improvements reflect ongoing advancements in cloud technology and increased adoption of integrated business solutions.
Enhanced business insights and decision-making
Integration with the Microsoft ecosystem
Dynamics 365 smoothly integrates with Microsoft’s suite of products, including Power BI, Power Automate, and Office 365, and offers robust data analysis and automation tools. While Dynamics GP is capable, it does not provide the same level of integration and advanced analytics, which limits your ability to fully leverage data for strategic advantage. Integrated tools, such as Power BI in Dynamics 365 Business Central, allow you to generate detailed reports and custom dashboards that deliver real-time insights into your business operations.
Invest in the future
In the end, sticking with outdated systems like GP is like using a flip phone in the age of smartphones—sure, it works, but at what cost? The hidden expenses of inefficiency, manual processes, and missed opportunities add up fast. A GP to Business Central migration is not just a tech upgrade but an investment in agility, scalability, and future-proofing your business. Don’t let the cost of stagnation hold you back—because the real question is not “Can you afford to switch?” It is “Can you afford not to?” Take the leap, and watch your savings and growth potential soar.
