While many businesses agree that going cloud is the right move, there are numerous factors that keep these systems on premise.

Jakub Wolinski Jakub Wolinski Microsoft Cloud Services Manager at Dicker Data
Jakub Wolinski

Cloud ERP: Migrate or Update - Compare Today!

True cloud ERP providers promote a host of benefits of their solutions around cost reduction, increased performance, real time insights and all the buzzwords. However, while many businesses agree that going cloud is the right move, there are numerous factors that keep these systems on premise.

“Cloud is the future, but everyone moves at their own pace - ensuring that all enhancements are compatible with and beneficial for core ERP processes… Migrating an ERP - the backbone of an enterprise - to the cloud is arguably more involved than migrating an edge system...”1

Let’s review some of the reasons why your customers are still using Microsoft Dynamics NAV, Dynamics GP, Dynamics AX or Dynamics CRM on-premise.

  • “It works”
    Unfortunately for tech providers the ‘if it ain’t broke…’ culture is still rife. Businesses where processes are operating reasonably efficiently, staff are stuck in their ways and/or the business has not seen return on investment yet, are typically hesitant to make the move.
  • Unpredictable upgrade cost
    Upgrade costs can be as high as a third of the original implementation costs. While Software as a Service (SaaS) vendors today promise ‘no more upgrade ever’, customers still need to wear the cost of upgrading from their current version or reimplementation.
  • No access to source code
    Latest versions of Dynamics 365 subscriptions no longer allow access to source code. This is important to on prem customers, because traditionally major Dynamics modifications were conducted directly in the application source code. No access to source code means to some customers that their heavy investment in their customisations, (sometimes costing hundreds of thousands of dollars) cannot be easily transformed in the new, simplified ‘extensions’.
  • Technical dependencies
    Microsoft Dynamics on-premise is not always the only business application that forms a business solution. For example, customer’s business operation may depend on data processing tools required by their business partners, payment gateways, comprehensive reporting tools, highly specialised bespoke solutions created in-house or integration methods which are rightfully prohibited by SaaS vendors for compliancy reasons. Some components of the solution may also be provided by another specialised party.
    In these complex scenarios simple change caused by an upgrade of a single component such as reset of an IP address, new access restriction on the infrastructure level or change in resolution accountability may lead to an environment downtime or a vulnerability leading to a massive cost on customer’s side or liability risk on partner’s side.
  • No technical documentation
    Comprehensive deployments may be performed by multiple partners, highly specialised in their specific areas of expertise, e.g. finance, supply chain management, manufacturing, business analytics or billing. Unless an extensive documentation policy is enforced by the customer, it is likely that the most demanding customers have lost a track of changes, dependencies, and accountability matrix between partners. Lack of updated technical documentation means that an expensive ‘all at once’ upgrade plan to SaaS version of Dynamics 365 can be fundamentally faulty as it does not accommodate for an undocumented modification in the overall environment architecture.

Upgrading to Dynamics 365 Cloud is not the ONLY option.

Migrating existing systems Microsoft Dynamics NAV, Dynamics GP, Dynamics AX or Dynamics CRM to Azure is a great option that allows customers to reap financial benefits of cloud without undergoing an unpredictable upgrade. Furthermore, undergoing the process of comparing costs of IaaS, PaaS to a full upgrade - is a great way to add value to your customer.

Why offer a cost comparison? 

  1. Help your customers understand their Azure options for Microsoft Dynamics quicker, more easily and without the excessive cost of sale to build a viability study
  2. Identify new migration opportunities
  3. Build recurring revenue

Azure options for on-premise Business Applications customers

  1. Go Azure with their existing version of Microsoft Dynamics
    This option is particularly relevant for customers whose hardware versions deployed on Windows 2008 R2 or SQL Server 2008 R2 which are already out of Microsoft support (leaving customer’s environments vulnerable – unless they bring these environments to Microsoft Azure). Learn more.
  2. Upgrade to the latest on-premise version and deploy it on Azure
    This option is great if your customer is seeking to benefit from the latest version of Dynamics 365 but stay on-premise.
  3. Go Dynamics 365
    This is the default option for all Microsoft Dynamics customers and comes with discounts, incentives and dual-right license benefits available from Microsoft.

Presenting the options: Dicker Data can help

Dicker Data’s Microsoft Cloud Services provide a specialised Azure cost configuration tool. This tool was designed by worldwide industry veterans at The CloudLAB with almost two decades of experience in deployment and management of Microsoft Dynamics in the cloud.

The simple-to-use cost comparison calculator makes it easy for partners and their customers to compare ongoing cost options for a range of scenarios. This streamlines decision making processes and provides customers added value from their trusted IT advisors.

Ready to learn more? 

JOIN OUR WEBINAR on 17th March @ 4.00pm AEST where Herb Prooy, founder of The CloudLAB, joins myself and Arsenio Mendoza Dynamics 365 Practice Lead, Dicker Data to discuss the business opportunity with Microsoft Dynamics on-prem customers and how you can leverage our cost comparison tool to maximise this opportunity today!

1 https://www.accenture.com/_acnmedia/PDF-90/Accenture-Unleashing-Exponential-Evolution-PDF.pdf

Contact microsoft.sales@dickerdata.com.au for all your Microsoft needs.


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