Upgrading from Microsoft Dynamics AX to Dynamics 365 – Insights and answers to FAQs

Are you planning to migrate from an on-premise Microsoft solution version of Dynamics, such as Dynamics AX or Dynamics CRM, to Dynamics 365, a more flexible, unified, and cloud-based solution?

If you are currently in the consideration stage on whether to migrate, we have answered some of the most commonly asked questions that can help you understand the process better.

Currently, Microsoft supports a direct upgrade from Dynamics AX 2012 to Dynamics 365 Finance and Operations.  But for older versions that are not supported, such as Dynamics AX such as AX 4.0 or AX 2009, an upgrade process is not available, in which case you’ll have to consider a new implementation.

With support for Dynamics AX ending soon, Dynamics 365 continues to be the best choice for an ERP upgrade.

Here’s all you need to know about moving from Microsoft Dynamics AX to Dynamics 365 for Finance and Supply Chain Management: the differences between the two applications, the benefits of Dynamics 365, and how to begin planning your upgrade.

1. WHAT ARE THE BENEFITS OF UPGRADING TO DYNAMICS 365?

• Improved accessibility – Dynamics 365 is a cloud-based platform that offers easier access through a pure browser-based user interface built with a simplified architecture.
• Cross-platform UI support – The browser-based user interface can function on any device (PC, tablet, phone), any platform (Windows, Mac, etc.), and any browser (Chrome, Safari, Firefox, etc.).
• Reduced IT maintenance – You can deploy Dynamics 365 in the cloud, as there will be no need for on-premise servers and systems that require maintenance. In addition, Microsoft monitors and updates the application, reducing the need for your IT staff to maintain the ERP system.
• Powerful integration – Dynamics 365 can easily and seamlessly integrate with numerous different platforms with other elements of the 365 suite.
• Highly scalable – As Dynamics 365 is cloud-based, you can scale your solution as the business grows, so you don’t have to commit to unnecessary licenses. You can also predict how many permits you may need in the future using powerful Business Intelligence features.
• Better security – Though Dynamics 365 is cloud-based, Azure hosts it with great security features. It is also easy to identify risks and respond to potential threats.
• Dynamics 365 pricing – Dynamics 365’s pricing is a lot more flexible as it is a subscription-based model which requires you to pay per license (user or device) per month. It comes equipped with several different licensing options depending on the chosen functionalities and user activities.

2. SHOULD I MOVE TO CLOUD OR STAY ON-PREMISE WHILE UPGRADING FROM AX 2009 OR AX 2012 TO DYNAMICS 365? WHICH IS BETTER?

If you are using AX 2009 or AX 2012, you will not have access to the latest technology required to run the On-premise version of Dynamics 365. Moving to the cloud offers several additional benefits, such as cross-platform UI (PC & Mobile, any browser), real-time BI, ease of access, reduced IT maintenance, and upgrades.

3. IF I MIGRATE TO THE CLOUD, CAN I MOVE BACK TO AN ON-PREMISE DEPLOYMENT IN THE FUTURE?

Yes, Microsoft provides customers the flexibility to bring their Dynamics AX application back

On-premise, if the cloud does not suit the right platform for their business.

4. CAN I CUSTOMIZE THE APPLICATION AND INTERFACE TO 3RD PARTY SYSTEMS IN THE CLOUD?

Yes, you can modify the application to meet unique business needs and exchange data with external systems and data sources s in the cloud.

5. WILL I BE ABLE TO CREATE MY OWN BI AND VISUALIZATIONS?

Dynamics 365 consists of a user-friendly platform called ‘Data Entities’ that helps build reports and visualizations using Power BI.

 6. IF I CHOOSE TO UPGRADE TO DYNAMICS 365, WHAT WILL HAPPEN TO THE CUSTOMIZATIONS AND INTEGRATIONS I DID IN AX 2009 OR 2012?

It is possible to reuse some of the existing functions, reports, and integration components depending on their complexity and impact on the core processes. Also, Dynamics 365 comes equipped with various functionalities and enhancements that cater to several industry demands. You can also consider many ISV solutions to address your integration or customization needs.

7. IS DYNAMICS 365 ONLY AVAILABLE IN CLOUD? IS THERE AN ON-PREMISES DEPLOYMENT OPTION?

Dynamics 365 has an on-premise version like previous versions AX 2009 or 2012 that helps you leverage existing data center investments. However, Microsoft Dynamics Lifecycle Services (LCS), a cloud-based application lifecycle management service calls for connectivity for system management and updates.

Following are the requirements when you opt On-Premise deployment:

• Configure your own disaster recovery solutions.
• Stand-up sandbox environments.
• Manage your own infrastructure.

Funding for these additional features will increase your Total Cost of Ownership (TCO). Additionally, the on-premise deployment option does not include Advanced Analytics and Azure Machine Learning capabilities.

8. WHAT ARE SOME MORE BENEFITS OF MOVING TO DYNAMICS 365?

• Web-based log in
• A sleek, user-friendly interface
• More integrations
• Regular updates
• Extensive new dynamics features

In addition to numerous benefits, dynamics 365 has an in-memory BI solution that provides real-time insights into your business performance. Microsoft hosts D365, service level agreements, and updates the application with new features and bug fixes. As one of the largest ERPs on the market, Dynamics 365 is an entirely integrated, cloud-based solution that offers extensive insight into all areas of your business and proves itself to be the best option.

We have answered some of the most common questions, and we’ll also be happy to help if you have any additional doubts. Please reach out to us if you’d like more help and information on Dynamics AX to Dynamics 365 Upgrade.