The most expensive ERP decision is not the one you make; it is the one you postpone. For over two decades, Enterprise Resource Planning (ERP) systems, such as Dynamics GP, NAV, and AX, have anchored core business operations, encompassing finance, supply chain, manufacturing, and distribution. Yet the same systems that once fueled growth are now slowing it. They have become Microsoft Dynamics’ legacy systems, weighed down by the cost of maintaining on-premises infrastructure, patching integrations, and managing version gaps.
This is where the shift to the cloud comes into focus. Organizations that have already migrated to Dynamics 365 are reaping the benefits of leaner IT budgets, faster performance, and capabilities that seemed out of reach just a year ago. Research shows that migrating to cloud ERP can significantly reduce infrastructure and IT operations spending while unlocking new levels of scalability and automation. This blog explores the post-upgrade cost savings of Dynamics 365. It highlights key performance patterns executives should note, especially if they are still debating whether the cost of staying put outweighs the value of moving forward.
Dynamics GP earned its reputation as a reliable accounting backbone. For many mid-market organizations, it was the first step into structured financial management. But its limits are now increasingly clear: high customization costs, reliance on batch processes, and heavy dependence on on-premises hardware.
Timing is now a pressing concern. Mainstream support for Dynamics GP 2018/2018 R2 ended in January 2023, leaving only extended support (which ends in January 2028) with limited security updates and no new features. This puts finance leaders at a crossroads: continue with a system that is technically alive but strategically stagnant, or move to a platform designed for the future.
Upgrading from Dynamics GP to Dynamics 365 Business Central addresses these challenges.
| Factor | GP (On-Premises) | Dynamics 365 BC (Cloud) | Savings |
| Infrastructure and Hosting | $40K to $60K per year | Included in subscription | 100% infra savings |
| IT Maintenance Hours | ~400 hours/year | ~120 hours/year | 70% reduction |
| Upgrade Projects | $25K every 3 years | Continuous updates included | ~ $8K/year avoided |
Organizations transitioning from Dynamics GP to Business Central report a 25 to 30% reduction in total cost of ownership (TCO) over five years. Beyond cost, the shift removes version-lock struggles, replacing periodic extensive upgrades with automatic enhancements.
Post-upgrade cost savings in Dynamics 365 also extend into performance. Finance teams can access real-time data from anywhere, streamline reporting, and automate reconciliation, cutting month-end closing times from weeks to days.
NAV was prized for its flexibility, but over time, customizations became a double-edged sword; heavy code modifications slow upgrades, leaving many NAV systems running unsupported versions. Microsoft has entirely shifted from NAV to Business Central. Mainstream support for NAV 2018 ended in January 2023; extended support will end on January 11, 2028. Businesses that remain behind face mounting technical debt and rising ERP upgrade cost analysis concerns.
The move from Dynamics NAV to Business Central has become a logical next step.
A European hardware distributor running NAV 2016 completed its Microsoft Dynamics legacy systems migration in under 16 weeks. By upgrading to Business Central, they cut integration errors by 40% and accelerated e-commerce order fulfillment by 25%.
For AX users, the challenge is scale. Dynamics AX was architected for global finance and manufacturing, but today its monolithic design creates performance bottlenecks and upgrade headaches. For AX 2012 R3, mainstream support ended on October 12, 2021, and extended support ended on January 10, 2023.
Key benefits of an upgrade from Dynamics AX to Dynamics 365 Finance & Operations include the following.
Infrastructure: Large AX deployments often require over $250,000 annually in server and database hosting. Dynamics 365 cloud vs on-premises cost savings become immediately visible when shifting to predictable SaaS subscriptions.
Compliance: Automatic regulatory updates reduce the risk of penalties. Dynamics 365 Finance and Dynamics 365 Supply Chain Management deliver continuous updates aligned with IFRS, GAAP, and local tax mandates.
Performance: Upgrading to F&O enables 30 to 40% faster financial consolidation cycles and significantly reduces downtime in global rollouts. This aligns with the typical performance improvements that organizations seek when migrating from Dynamics AX to D365.
The net effect: companies that undertake a Microsoft Dynamics legacy systems migration (AX) can redirect thousands of dollars annually from maintenance into innovation. Beyond operational speed, these upgrades enable automation, with customers reporting an average of 20% faster order processing. The migration also contributes to measurable post-upgrade cost savings for Dynamics 365 and a more substantial ROI.
Upgrading from Dynamics NAV or GP to Business Central is often perceived as a disruptive, high-risk project. Traditional implementations can take months, sometimes years of planning and rework, with uncertain outcomes and stretched timelines. LevelShift addresses this challenge with QuickSwitch Packages, a structured approach designed to simplify the upgrade from Dynamics GP to Dynamics 365 and from Dynamics NAV to Business Central, shorten go-live timelines, and ensure readiness for long-term growth on Dynamics 365.
By combining standardized processes, pre-configured templates, and tailored training, QuickSwitch reduces migration timelines by as much as 40 to 50% compared to conventional upgrades. Instead of open-ended, nine-month projects, organizations can go live in as little as six to eleven weeks, depending on complexity and scope. The focus remains on risk reduction, business continuity, and fast productivity gains in Dynamics 365 Business Central.
| Migration Type | Traditional Upgrade | QuickSwitch Timeline | Time Savings |
| NAV to Business Central | Four to six months | Six to 11 weeks | 45 to 55% |
| GP to Business Central | Five to seven months | Six to 11 weeks | 50 to 60% |
The outcome is more than just speed. Every additional month spent on NAV or GP incurs maintenance costs, manual workarounds, and missed opportunities for integration. QuickSwitch shortens that window, delivering predictability and measurable ROI sooner.
Whether it is GP migration challenges, NAV upgrade performance comparisons, or AX to Dynamics 365 F&O performance improvements, the conclusion is the same: companies that modernize see measurable cost benefits of ERP modernization.
Replace escalating maintenance costs and mounting risk with the following:
In practice, this means migrations stop being multi-year IT projects and become business-aligned transitions designed to support near-term objectives while preparing the organization for future growth.
Upgrading from GP, NAV, or AX to Dynamics 365 is the moment businesses stop working around limitations and start building for growth. LevelShift’ QuickSwitch packages offer a faster, structured, and reliable route to Dynamics 365. Contact us today to map out your upgrade plan. Not only is standing still on GP, NAV, or AX not saving you money, but it is also costing you opportunity.
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