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Improve Business Value When You Migrate from Dynamics AX to Dynamics 365 Finance

by Allie Wolf
7 minutes read

When migrating from AX to Finance & Operations saves your company cash

OK, this is a little confusing. Microsoft Dynamics AX, technically, no longer exists. Microsoft confined it to the history books like Mail, MapPoint, and AutoRoute. (Bonus points if you remember any of those retro products!) In 2018, the ‘Big M’ removed AX’s interface and rebranded the product as Dynamics 365 for Finance and Operations (FO).

Still, a lot of users refer to D365 FO as AX. So that’s what this blog post is going to call it.

Whether you know it as FO or AX, there’s an enormous problem with this software. While AX remains a pretty exceptional ERP system that handles procurement, sales, productions, logistics, and business administration, many of its users can’t do any of that stuff in the cloud. These businesses are still using AX as an on-premises ‘solution.’ And, as you’re about to learn, that can cause all kinds of problems.

Dynamics AX v. Dynamics 365 for Finance and Operations? There really is no competition. Below, learn why it’s time to switch from Dynamics AX to Dynamics 365 — a much bigger, much more powerful, interconnected system of ERP and CRM tools that now incorporates AX/FO — in the cloud.


Dynamic Consultants Group (DCG) is the No.1 partner for data-driven businesses wanting to migrate from AX to Finance and Operations. Let a world-class specialist create a migration road map for your enterprise that reduces downtime, cuts costs, and enhances end-to-end workflows. Schedule a Microsoft Teams meeting to learn more.

Why Should you Switch From Dynamics AX to Dynamics 365 Finance and Operations?

Dynamics 365 Finance and Operations in the cloud provides far more security, scalability, and performance benefits than Dynamics AX on-premises ever can. Here are some business benefits of migrating to Dynamics 365:

  • Optimize performance with better business continuity and automatic updates. The cloud streamlines workflows so you can focus on other tasks in your business.
  • A legacy on-premises system makes it difficult to keep up with modern business practices such as remote working. Teams can collaborate and communicate better within a cloud environment.
  • Provide teams with the latest virtual technology.
  • Increase productivity among teams with easier data recovery and better data security.
  • Improve data compliance with government regulations.
  • Get more value from the other Microsoft tools that make up the Dynamics 365 ecosystem, such as Outlook, Excel, Teams, and Power Platform.

Read more: Microsoft Implementations and Support: Myth vs. Fact.

Why Does Dynamics AX Work Out More Expensive for Your Business?

Perhaps the most significant deciding factor when considering Dynamics AX v. Finance and Operations is cost. First, think about all the charges associated with an on-premises system like AX. Businesses need to pay for all the physical infrastructure that powers that system. That means paying for:

  • Data storage
  • Servers
  • Other physical facilities

And all that can get pretty expensive. Then, once you’ve paid for physical infrastructure, you need to support and maintain it. Or pay someone to maintain it.

There are other costs to consider

Physical infrastructure is less secure than the cloud, which means you’ll have to invest in a robust security solution. That includes disaster recovery and mobile access and making sure you comply with ever-complicated data governance legislation. (Frameworks like GDPR can issue you an expensive penalty if you don’t.)

Companies that manufacture physical infrastructure know many businesses like yours benefit from virtualization after upgrading their systems to a cloud environment. So they typically use this argument to put you off the cloud: As you purchase licenses for physical infrastructure upfront, overall costs work out less than when paying a cloud service provider every month.

But that’s not always the case. It depends on the cloud environment. Microsoft Azure, Microsoft’s cloud platform that powers Dynamics 365, comes with various pricing options and could be as much as 12 percent cheaper than Amazon Web Services (AWS), another popular cloud platform and Azure’s biggest rival. Plus, there are no cancellation costs or upfront fees.

Factor in the cost of physical infrastructure and the expense of supporting and maintaining it, and upgrading to the cloud could work out incredibly cheaper. You might save thousands of dollars a year.

Read more: Why is Microsoft Dynamics 365 CRM Customer Engagement CRM Worth the Investment?

The Economic Value of Investing in Dynamics 365 in the Cloud

Now consider a cloud solution like Dynamics 365. Expect to pay for:

  • Licensing (monthly, like mentioned above)
  • Implementation
  • Customization/employee training

That’s it.

You don’t have to pay to support and maintain physical servers. Or data centers. And you don’t have to find the cash to repair or replace infrastructure if it breaks down.

While you can’t do much about licensing costs (Microsoft sets the price), you can shop around for an implementation partner that customizes Dynamics 365 and trains your employees to use it for a cost-effective price. The best Microsoft Dynamics 365 partners only charge you for the services you use so you can reduce costs and put some money aside for other business improvements and innovations.

DCG specializes in low-cost AX to 365 integration and provides ongoing support and maintenance for your entire team. Call 844-567-2590 now to learn more about Dynamics AX v. Dynamics 365 FO.

Read more: Why Upgrade Dynamics AX to Dynamics 365 Finance?

Dynamics AX vs. Dynamics 365 Final Word

It’s crystal clear. Migrating from AX to D365 Finance and Operations enhances economic value in your business. You won’t have to maintain physical hardware or pay for extra security, and you only really need to worry about the cost of implementation, customization, and training. Working with the right partner can bring down costs further and provide even more bang for your buck.

Let DCG map out your migration from Microsoft Dynamics AX to Microsoft Dynamics 365 Finance and Operations with a framework you can count on. Reduce downtime, save time, improve implementation across your team, and, ultimately, cut costs. Schedule a Teams meeting to discover more.

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