AX, NAV, GP, SL…in and amongst the acronyms lies a fascinating story of how Microsoft sidestepped building its own ERP by acquiring existing software. Or so it thought.
Fast-forward to today, where Microsoft Dynamics 365 and Business Central have largely replaced Axapta, Navision, Great Plains, and Solomon. While Microsoft will continue to support these legacy products, moving to a modern cloud ERP is not a simple upgrade.
Current users of Microsoft legacy software products may be wondering what the next steps are in their ERP journey. Should they follow the migration path that Microsoft has established in order to maintain relationships with current customers, or should they venture out into the market and select a brand-new platform?
Let’s explore the benefits of upgrading to a new application as well as the consequences that follow from discontinuing the use of Microsoft legacy products. To begin, we will look at how it all started.
Despite international recognizability and use, Microsoft had humble beginnings in the ERP world. The company established its first ERP products through the acquisition of preexisting platforms rather than through the creation of its own ERP application.
At the dawn of their ERP journey, Microsoft purchased Great Plains, which in turn has recently purchased Solomon. Shortly thereafter, their search went international, and they discovered Navision, a company from Denmark, which had just acquired a Danish ERP provider called Axapta.
From there, Microsoft marketed the four products as Dynamics GP, Dynamics SL, Dynamics NAV, and Dynamics AX; however, these abbreviations proved to be confusing to customers. Microsoft also tried to market all four products as a single ERP called “Dynamics”, but some customers only wanted one of the offerings, forcing Microsoft to move to sell and support the four products separately.
When Microsoft decided to upgrade its ERP platform, it consolidated and rebranded: Microsoft Dynamics 365 Business Central is commonly used by smaller and midsized organizations, while Microsoft Dynamics 365 Finance and Operations, otherwise known as Finance and Supply Chain, is for larger organizations.
Current users of Dynamics GP, Dynamics SL, Dynamics NAV, and Dynamics AX may experience some of the following pain points:
If you are on a Microsoft legacy software product, you may feel like you need to look at a completely new platform in order to upgrade. While we always recommend staying up to date in your research of a new ERP, we do not want you to assume that going back to Microsoft will result in disaster.
Microsoft’s newer ERP products bear little resemblance to their predecessors. Even if you choose to stay loyal to the Microsoft platform, a solid ERP implementation can make Microsoft feel brand new.
Whichever application you choose, here are some ways you can make the transition as smooth as possible, even if you choose to migrate to a different solution.
Depending on what legacy software your company is using, Microsoft has, in most cases, given current users a 10-year window for support. So, while you do have some time, you do not want to transition at the last minute. ERP implementations are often measured in months and years, not days and weeks.
It is important to give yourself plenty of breathing room to do your due diligence in looking for a new application. The goal is to avoid an issue with the sunsetted software, leaving your company with no support. Along with this, the more time you give yourself to research the market, the more negotiating power you will have when you find your next ERP.
As you begin the search for a new solution, you must first determine your needs. Look at any issues you face with your current software. What pain points would you like to resolve with a new application? What are you hoping to get out of the software? What does new software offer that would make its implementation beneficial to your company? Make a list of everything you want to correct, then compare it to the products available in the marketplace.
After you find products that appear to be a good fit, you can begin narrowing down your search. Do not be afraid to level up — but also do not seek more than what you need. It is not necessary to pay for extra features when they will not be utilized. It is better to find the right size product than to pay for something that will provide many unnecessary, ultimately unused features.
Do not simply look at the Microsoft marketplace. Look around and remember that there may be many more products available today than there were when the legacy software was purchased.
Conduct thorough research when the time comes to select your implementation partner. Do not merely go with the first firm that you find. If you already have a trusted advisor in another area, perhaps an accounting firm that you have used for years, remember that while they may be great accountants, they likely do not have expertise when it comes to ERP products or implementation partners, so it is best to involve true ERP experts in the decision-making process.
All implementations will have their own set of challenges. No matter what Microsoft legacy software products you currently have, there is no immediate need to panic about making an upgrade. Rest assured Microsoft is doing the right thing for its customers by offering a lengthy support system.
If you are ready to make the change, feel free to reach out to us for help. ERP Advisors Group has the experience it takes to assist you in all of your company’s ERP endeavors.