The latest version of Microsoft Dynamics AX, the predecessor of Microsoft Dynamics 365, was released in 2016. Despite the cessation of official support, many companies continue to rely on this robust enterprise resource planning (ERP) software.
According to Enlyft, a platform providing insights for B2B sales, Dynamics AX still maintains a 1.4% market share in the ERP category. Implementing an ERP system demands considerable effort from an enterprise, leading organizations to stick with their software for as long as possible.
However, with more companies embracing state-of-the-art ERP suites, a Dynamics AX upgrade becomes imperative to maintain competitiveness on the market. Explore this article for further insights into the advantages of transitioning to Microsoft Dynamics 365.
Access to cutting-edge features
Access to innovative technologies not available in the previous Dynamics 365 iteration is one of the primary benefits of a Microsoft Dynamics AX upgrade, which provides companies with numerous enhancements and new capabilities introduced to Microsoft Dynamics 365 through regular updates.
Some of the powerful features of Microsoft Dynamics 365 that enhance the productivity of users and companies include built-in intelligence and analytics functionality powered by artificial intelligence. Another modern technology available to users of Microsoft Dynamics 365 is the Internet of Things (IoT), which adds value to business by:
• supporting remote device monitoring and maintenance;
• collecting real-time telemetry data;
• improving supply chain visibility;
• facilitating smart manufacturing through predictive maintenance, production optimization, and improved inventory management.
More deployment methods
A Microsoft Dynamics AX upgrade allows companies to switch to other models of deployment or opt for the on-premise option. Microsoft Dynamics 365 can be implemented as a SaaS product, providing organizations with full support, which includes professional data management and cybersecurity from Microsoft. Additionally, the software is available with a hybrid cloud deployment method, a useful option for companies operating in industries with stringent security and data protection regulations.
Improved reliability and scalability
Microsoft Dynamics 365 has constant support from developers who are continuously enhancing its performance to ensure stability and reliability. Frequent updates provided by the Microsoft team include bug fixes, security optimization, and performance improvements.
As mentioned earlier, Microsoft Dynamics AX no longer has official support, which contributes to the vulnerability of the system. Additionally, upgrading to the cloud-based microsoftdynamics upgrade 365 can significantly boost the scalability of your software.
Budget efficiency
Cost optimization is another advantage of upgrading to Microsoft Dynamics 365. The choice of the cloud version creates possibilities for financial savings due to the flexibility of the system. Microsoft provides complete freedom to organizations to add separate applications to their ERP and CRM suite and remove them whenever they prove to be redundant, thereby adjusting the license fee based on the number of applications used.
Furthermore, the pricing for cloud Microsoft Dynamics 365 is flexible, depending on the number of software users, which can be modified whenever the needs of an organization change. Additionally, the price per user is also based on their access to the software functionality.
In this way, organizations that decide to upgrade to Microsoft Dynamics 365 have multiple possibilities to save on license fees, while the functionality of the system itself has the power to optimize company productivity and costs.
Better integration
Needless to say, as the most recent version of an ERP and CRM system, Microsoft Dynamics 365 offers smoother integration with other products and services, both those offered by Microsoft and third parties, which further enhances automation, data processing, and collaboration. Some of the services that can be integrated with Microsoft Dynamics 365 much more easily than with Microsoft Dynamics AX, if at all, are:
• Power Platform used for building custom business apps and chatbots, analyzing data, and automating workflows;
• Azure, Microsoft’s cloud computing service that supplies users with advanced security, AI, and IoT solutions;
• Dataverse, a state-of-the-art cloud-based platform used for storing and managing data utilized by Microsoft Dynamics 365 and Power Platform apps.
Does your company need a Dynamics AX upgrade?
As described in this article, despite its benefits, Microsoft Dynamics AX currently offers less value to enterprises than Microsoft Dynamics 365. However, many companies may still refrain from the upgrade due to the associated costs. Even if your business seems to work effectively without access to cutting-edge features, the upgrade is still recommended for the following reasons:
• Outdated technology makes it harder to keep up with dynamic changes on the market and compete with other businesses;
• End of support reduces the software’s protection from security vulnerabilities and hinders its stability;
• Difficulties with complying with constantly evolving regulatory requirements and standards;
• Scalability and performance issues;
• Lack of flexibility in the pricing system.
Dynamics AX Upgrade – bottom line
Despite the required investment, the benefits of upgrading from Microsoft Dynamics AX to Microsoft Dynamics 365 are substantial and far-reaching. Companies switching to a new version of the Microsoft ERP and CRM software can enjoy more deployment options, innovative features, improved reliability and scalability, cost optimization, and better integration capabilities. On the contrary, refraining from an upgrade creates risks for hindered productivity as well as security and data compliance issues.