If you’re an organization running Microsoft Dynamics GP, you might be wondering what the splash of Microsoft’s new Dynamics 365 Business Central (365BC) brings to the table. After all, GP is a long sustaining enterprise resource planning (ERP) solution developed in 1993 while Business Central is new SaaS cloud solution. However, it’s no secret that Microsoft is going all-in with Business Central as the leading business process management offering for small to mid-size businesses. So what’s the buzz, and how does it compare to GP?    

First and foremost, it’s best to reference the capabilities and benefits of Business Central’s cloud deployment because the purpose of Microsoft’s next wave of Dynamics 365 ERPs is to meet the exponentially growing demand for flexible, accessible, and mobile business applications. Even companies that may initially deploy Business Central on-premise are likely selecting the solution due to its ability to provide a cloud-ready, and cloud-built, migration down the road.        

How Microsoft Dynamics GP and 365 Business Central different? What are the pros and cons of each when it comes to accounting function and operational management? In other words – which one is right for you? In this article, we are going to examine GP and Business Central side-by-side as it relates to Licensing and Hosting.

At the surface, both products are aimed at small and medium-sized businesses (SMB) and are built to administer the finances of an enterprise along with core operational areas such as manufacturing and field service. However, there are differences in all the elements listed above that are important to consider, especially if you’re contemplating upgrading from Dynamics GP to Business Central.  

So now onto the more critical questions, such as how Microsoft Dynamics GP and 365Business Central different? What are the pros and cons of each when it comes to accounting function and operational management? In other words – which one is right for you?

LICENSING AND HOSTING:    

GP

‍With Dynamics GP, the primary licensing option is perpetual. You pay for the software up-front along with a yearly maintenance fee that covers your ability to access upgrades. These upgrades do typically require significant migration services and events that involve additional costs. GP does offer a less popular subscription licensing that allows you to pay monthly. In either model, you can host on your servers, which is the most common with GP deployments, or you can do cloud hosting through a third-party infrastructure as a service (IaaS). It is important to note that IaaS and software as a service (SaaS) are very different. Putting GP on IaaS does not make it a true cloud ERP as the software still isn’t purpose-built for web accessibility and upgrades are not automatic. Users with Dynamics GP are concurrent, which only limits how many people are logged into the system at one time, not how many are licensed in total.    

     Pros: flexibility of up-front or monthly licensing purchase, control of supplying your infrastructure, concurrent users    

     Cons: Must pay for and maintain your infrastructure, costly upgrades, no true SaaS option that includes seamless upgrades/enhancements    

‍‍

365BC‍

Business Central is licensed as ‘SaaS’ (Software as a Service) and includes hosting on Microsoft’s Azure. This means that your ERP will update automatically with the latest features and enhancements, so the days of long, risky, and expensive upgrades are gone. Also, Business Central is built for accessibility and genuine cloud deployment. Organizations must choose between “premium” or “essential” named users, and it requires these to be the same across the entire license. In contrast to concurrent users with GP, named users do require a license purchase for each person who will be accessing the system at any given time.    

There is still an on-premise model with Business Central available for organizations who want the control of hosting in-house. This perpetual option is unofficially referred to as Microsoft Dynamics NAV 2019 in the inner-channel of those who deploy this option because it is essential the next/latest version offering for NAV.    

     Pros: Automatic enhancements, upgrades, and bug-fixes, no costly upgrades, built for accessibility and cloud, no infrastructure (hardware, server, IT) expenses    

     Cons: Named users, license types must be the same across the organization    

‍‍

ROAD MAP:    

While there are pros and cons to each solution – it must be transparent that Business Central is essentially the future of Microsoft’s SMB business application movement. Business Central will ultimately get the largest apportion of resources, development, and attention. While GP isn’t going away, there are few who wouldn’t admit that in order to obtain innovative features and the benefit of evolving cloud technology, updating to Business Central is the surefire way of getting there. Dynamics GP long-term (5-10 year) road map is uncertain, whereas Business Central is a solid bet in terms of an indefinite and sustainable investment.    

SUMMARY COMPARISON:    

Many organizations currently running Microsoft Dynamics GP are looking at their options to upgrade to Microsoft Dynamics 365 Business Central. That motivation comes in the way of cost savings, accessibility, eliminating complex upgrades, long-term viability, and consistently evolving features that automate and streamline many operations.    

In particular, if you relate to any of the following, chances are you need to discuss how to transition to Business Central with an expert:     

• You believe that the hardware and server maintenance, resource requirements, along with the yearly enhancement fees for Dynamics GP are growing too expensive
• You would like to mitigate data loss risks and infrastructure costs by obtaining a real cloud and SaaS solution
• You are managing too many disparate add-ons so Dynamics GP can meet your business needs
• You need more robust financial and operational reporting, including better data analysis and the ability to easily deploy Power BI
• You would like to be less reliant on external consultants long-term for configuring, updating, and managing your business process management system/ERP
• You need mobility, with the ability to access data and be productive from anywhere

There may be other considerations that it’s time to migrate to Microsoft’s next-generation ERP platform, and at QBIX we are here to help guide your company to the right decision. We support both continued upgrades of your existing GP solution, as well as provide a risk-free, fast, and comprehensive migration to Business Central that won’t disrupt your business and will set you up for success in years to come.    

Contact us today to discuss what solution and upgrade is best for your organization’s needs.    

916.212.4230 | info@qbixllc.com    

‍