Rachel brings over 15 years of ERP industry experience to Protelo, specializing in NetSuite, Acumatica, and business software solutions. She has written extensively on ERP and business operations, helping organizations navigate technology decisions and industry best practices.
By: Rachel Groves Dec 05, 2018
Microsoft has announced that support for Dynamics GP will end on December 31, 2029. Security updates and patches, if needed, will be available through April 30, 2031. While that does not mean every Dynamics GP customer needs to replace its ERP immediately, it does create an important planning window for organizations that rely on GP for financials, operations, inventory, reporting, and other core business processes.
For CFOs, Controllers, CIOs, and IT Directors, the decision is not simply about Microsoft's support timeline. It is about the total cost and risk of continuing to maintain an aging ERP compared with the business value of moving to a modern platform.
For some organizations, staying with Dynamics GP for several more years may make sense. For others, this may be the right time to evaluate a modern ERP replacement.
That deadline may seem several years away, but ERP replacement is not a project that organizations should begin a few months before their existing system becomes difficult to support.
Selecting an ERP, documenting requirements, evaluating vendors, preparing data, reviewing integrations, redesigning processes, testing the new system, training users, and completing the migration can take significant time.
The more customized your Dynamics GP environment is, the more important it becomes to start planning early. And organizations running older GP versions may have an even more immediate concern. For example, Microsoft lists Dynamics GP 2016 and GP 2016 R2 as reaching end of support on July 14, 2026, while Dynamics GP 2018 and GP 2018 R2 reach end of support on January 11, 2028.
The result is that many organizations should be asking: Do we continue investing in Dynamics GP, or should we use this opportunity to move to a modern ERP?
The end of support is one reason to evaluate your options, but it should not be the only one. For many companies, the more important issue is that the ERP no longer supports the way the business operates.
Dynamics GP may have been an excellent fit when it was implemented. But companies change. They add locations, expand product lines, acquire businesses, introduce new sales channels, increase transaction volume, add integrations, and expect faster access to business information.
Eventually, the ERP that once supported growth can become a constraint. Common reasons organizations begin evaluating a Dynamics GP replacement include:
The question is no longer simply whether Dynamics GP still works.
The better question is whether the cost, risk, and limitations of maintaining GP are greater than the cost and disruption of replacing it.
If your organization depends on internal IT resources, consultants, or outside partners to maintain servers, databases, customizations, integrations, and upgrades, the true cost of Dynamics GP may be much higher than the software license itself.
Calculate the full cost of ownership, including:
A system can appear inexpensive while becoming increasingly expensive to maintain.
Customization is not inherently bad. In many cases, custom development helped organizations make Dynamics GP fit their business. The problem occurs when those customizations become difficult or expensive to maintain.
Ask:
Your customizations should be treated as part of your ERP's total cost and migration complexity.
If your finance team regularly exports data from GP into Excel to build management reports, combine data from multiple systems, or create dashboards, your ERP may no longer be providing the visibility the business needs.
CFOs and Controllers increasingly need access to timely information about:
If answering basic business questions requires several manual steps, it may be time to evaluate a more connected ERP.
Your ERP rarely operates alone. Modern businesses may connect their ERP to ecommerce platforms, CRM systems, payment processors, banks, warehouse systems, shipping platforms, payroll, expense management, EDI, business intelligence tools, and other applications. As these systems evolve, older ERP environments can require additional integration work and custom development.
If every new application creates another IT project, evaluate whether your ERP architecture is helping or holding back your technology strategy.
The way employees work has changed significantly since many Dynamics GP environments were originally implemented. Organizations increasingly expect employees to access business information from different locations and devices without depending on complicated remote-access infrastructure.
Security should also be evaluated across the entire environment, including servers, databases, remote access, integrations, user permissions, backups, and third-party applications. An ERP replacement evaluation should therefore consider more than application functionality. It should also examine the security and infrastructure requirements surrounding the ERP.
Growth can expose limitations that were not apparent when Dynamics GP was first implemented. Consider whether your ERP can comfortably support:
If growth requires increasingly complex workarounds, it may be more efficient to move to an ERP designed for the organization's next stage.
This may be the most important question. What is Dynamics GP costing your organization today—and what is it preventing you from doing? The answer should include more than licensing.
Consider the cost of:
Then compare those costs with the investment required for a modern ERP. That is the real replacement decision.
There is no single answer for every organization running Microsoft Dynamics GP. The right path depends on your current environment, business goals, technology strategy, budget, and how much change your organization is prepared to take on.
Rather than asking which ERP is universally better, start by asking which option best addresses your organization's current challenges and future requirements.
Staying with Dynamics GP may make sense if your business has relatively stable operations, limited customization, and a clear reason to defer a replacement project.
This may be the right choice if:
However, continuing with GP should be a strategic decision, not simply the default choice. Establish how long you intend to remain on GP, what it will cost to maintain, and when you will reevaluate your ERP strategy.
The most important step in replacing Dynamics GP is defining what your organization actually needs from its next ERP. Before comparing vendors, document your priorities across:
From there, you can determine whether your current Dynamics GP environment is still capable of supporting the business or whether moving to a modern cloud ERP such as NetSuite is the better long-term strategy
NetSuite may be a strong option for organizations that want to move beyond legacy ERP infrastructure and adopt a cloud-based platform designed to support financial and operational growth.
NetSuite may be particularly well suited to organizations that need:
For organizations evaluating a move from Dynamics GP to NetSuite, the project should begin with an assessment of current GP processes, data, customizations, integrations, and reporting requirements.
Learn More: Microsoft Dynamics to NetSuite
NetSuite is not the only cloud ERP option available to organizations replacing Dynamics GP. The right platform depends on your business requirements, industry, growth plans, and technology strategy. If you're evaluating multiple ERP platforms, compare each option against the requirements you identified during your selection process.
Learn More: Microsoft Dynamics to Acumatica
The goal isn't simply to replace Dynamics GP. It's to choose an ERP that supports where your business is going next.
Once you decide that replacing Dynamics GP is the right direction, resist the temptation to immediately start moving data. First, understand what you actually have.
Document:
Not every process currently performed in Dynamics GP needs to be recreated in your new ERP.
Identify which processes are genuinely required and which exist simply because the old system could not handle the desired workflow.
This is one of the biggest opportunities in an ERP replacement.
Do not automatically migrate every customization.
Instead, ask whether the process should be:
Determine what information needs to move to the new ERP.
This may include:
Not every historical record necessarily needs to be migrated into the new system.
A data migration strategy should balance business requirements, reporting needs, compliance, system performance, and project complexity.
Learn More: Data Migration Services
Create a complete list of every application connected to Dynamics GP.
For each integration, determine:
Before selecting a replacement, establish requirements across finance, operations, IT, and leadership.
Your requirements should cover:
Read More: ERP Selection Guide
ERP replacement is more than a software purchase. A successful project requires planning around:
Read More:
• NetSuite Implementation Timeline & Milestones
• Top 14 ERP Competitors
A Dynamics GP replacement project can range from a relatively straightforward financial implementation to a complex ERP transformation involving multiple entities, integrations, customizations, and operational processes.
Project duration depends on factors such as:
A relatively straightforward financial implementation may take considerably less time than a complex multi-entity environment with extensive integrations and operational requirements.
The important point is that organizations should start planning well before their desired retirement date.
If you want to be off Dynamics GP before its support deadline, work backward from your target go-live date and allow time for ERP selection, contracting, implementation, migration, testing, training, and stabilization.
Before deciding whether to stay with Dynamics GP or replace it, ask:
The end of Dynamics GP support provides a clear deadline, but companies should not wait until 2029 to start thinking about their options. For some organizations, the right answer may be to continue running GP while developing a longer-term plan.
For others, the cost of maintaining an aging ERP, managing customizations, supporting legacy infrastructure, and working around reporting and integration limitations may already justify a replacement. The best time to evaluate your options is before the decision becomes an emergency.
Start by understanding your current Dynamics GP environment, calculate the true cost of maintaining it, define your future business requirements, and compare the ERP platforms that can support where your company is going next.
Whether your organization is still evaluating its options or is ready to begin planning a move from Dynamics GP to NetSuite, starting early gives your team more time to evaluate requirements, prepare data, address integrations, and build a successful implementation plan.
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Protelo can help you evaluate your current Dynamics GP environment, define your ERP requirements, and determine whether a modern cloud ERP such as NetSuite is the right next step. Explore your options for replacing Microsoft Dynamics GP and start planning your next ERP.
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