How much does it cost to migrate to from GP to Business Central?

How much does it cost to Migrate from Dynamics GP to Dynamics 365 Business Central?

If you are a Dynamics GP user and you are reading this, you may have heard about Microsoft Dynamics 365 Business Central, the next generation business software from Microsoft, and maybe you are planning to migrate to it in the future.

In all honesty, Microsoft Dynamics GP is a very robust ERP and you can stay with it for as long as you want to now that Microsoft has made it part of their Modern Lifecycle Policy which guarantees support and improvements for years to come. However, it may interest you that Business Central has been built from as a cloud-based solution which allows you manage your business from anywhere, and requires less maintenance that any on premise ERP. Also, Microsoft is continually adding new features to this new product and third-party developers are joining the new ERP platform at ever increasing speeds, bringing a wealth of new functionalities to Business Central.

In the end, it is not a case of
having to migrate from GP to Business Central, but that you will want to migrate from GP to Business Central. Having said that, it makes sense to consider migrating from GP to Business Central at some point. When that moment comes, it is intelligent to have analyzed how much such a move will cost, right?

Migration Costs to Consider

The following are the key factors affecting the migration costs from GP to Business Central.

  • Migration of your current data

While it is only natural that you would want to take all of our data to the new system, reality can be different. Not everything needs to be migrated. At a minimum, you need to migrate all of your current master records and your "open" documents so that you can operate your business. With respect to historical data, however, you need to consider how much of it is necessary to migrate to the new system. The answer to that question can have a significant impact on the cost of the migration project. We recommend that you think about migrating at most a financial summary of the last few years, but not migrate sub ledger transactional data because that tends to increase costs significantly.

  • Process changes

Microsoft Dynamics 365 Business Central offers similar functionalities to other modern ERP systems. The process flows in Business Central are also similar to other ERPs but, as would be expected, it differs from Dynamics GP in the way some of its functions operate. This is so because the implementation of most functions is closely associated with Business Central's (excellent) web interface, or because there may simply be automation functions not available in other systems.

In most cases, businesses that move from GP to Business Central can adapt fairly quickly to the way transactions are executed in the new system. For those businesses that use vertical applications o lots of customized functionality, however, there may be a lot of additional work and the costs may be significantly greater.

You need to be realistic and hones about how unique your business processes are. Are you willing to adapt to a new user interface and somewhat different processes? The more complex or unique your processes are, the more costly a migration to the new system will be.

  • Training and continued support

As you would expect, any system change will require user training and support. Business Central's modern web interface is radically different to GP's widows and menus, so good training will go a long way to making users comfortable with the new system. But, how much does this affect your final cost?

The more users you have, the higher the cost of training will be. It is important to plan enough training and ongoing support so that the users can get used to the new way of doing things, and are allowed enough time to climb the learning curve.

We Recommend: Embrace the change

If you want to save money (and who doesn't), we recommend that you make an effort to simply absorb the new proceses and functionalities in Business Central. You should not try to make the new system work like GP — that would be a costly mistake. Accept the new system as it is, with its good things and its perceived deficiencies, and help your users get used to it as quickly as possible. The more you adapt, the more economical the migration process will be.

The final word

So, How much will it cost to Migrate from Microsoft Dynamics GP to Microsoft Dynamics 365 Business Central? For companies that use the basic financial modules with more or less standard processes, you can expect to pay around 15k to 20k. For larger companies with complex or custom processes, or those who use vertical solutions such as manufacturing or warehouse management, for example, the cost can be as high as a completely new implementation, which can go into the hundreds of thousands of dollars.

Ask the experts

System migrations can be notoriously difficult. But you do not have to do it alone. We can help you estimate, plan and execute a successful migration as efficiently and economically as possible.

With more than 30 years offering services to Microsoft Dynamics customers, ICON can offer you our experience and knowledge to help your company achieve success. To learn more about how we can help you grow your business,
contact us.