Regardless of the type and size of business, IT leaders worldwide are replacing legacy, on-premises technology with more flexible, cost-effective, and scalable advancements in the cloud.
Dynamics 365 Business Central is Microsoft’s newest cloud-based ERP for the midmarket that employs the full functionality of Dynamics NAV in the cloud. When businesses migrate Dynamic NAV to Dynamic 365 and embark on a cloud migration journey, they enjoy a range of benefits, including reduced IT costs, better data security, and accelerated innovation.
However, moving to the cloud and upgrading from Dynamics NAV to Dynamics 365 Business Central is difficult without a well-thought-out plan and expertise in cloud migration.
This blog explores the importance of cloud migration in today’s business environment, the difference between on-premise and cloud platforms, and the top reasons why you should not delay your migration to cloud-based Dynamics 365.
On-Premise vs. Cloud: Why Migrate from Dynamics NAV to Dynamics 365 Business Central?
Choosing between an on-premise and cloud environment is a complex process. You must consider several factors, such as a detailed business requirements analysis and selecting a reliable technology partner. In the case of on-premise hosting, an organization hosts everything in-house in an on-premise environment. In contrast, a third-party service provider hosts everything in a cloud environment, including applications, websites, and other IT solutions. This gives organizations the benefit of paying for services on an on-demand basis. Further, it also gives them the advantage of effectively scaling up or down based on their specific user requirement, overall usage, and company growth. Additionally, the cloud features instant provisioning (allocation of a cloud provider’s resources/services to a customer) since everything—virtual machines, the allocation of storage capacity, and access to cloud software—is already configured. Therefore, any new software integrated into your IT environment is ready to use once you subscribe to it.
Why a Dynamics NAV Upgrade to Dynamics 365 Business Central is the Way to Go
To better understand the rising adoption of and migration to the cloud and why you should consider a Dynamics NAV upgrade to Business Central, here are recent statistics and trends:
- A recent Gartner study suggests that a whopping 95% of data workloads by 2025 will be hosted in the cloud, up from 30% in 2021.
- A recent study by Markets and Markets suggests that cloud adoption will continue to grow at a compound annual growth rate (CAGR) of 16.3% between 2021 and 2026.
- According to a report by BCG, organizations can save almost 15-40% (or higher) on infrastructure costs by migrating to the cloud.
Importance of a Dynamics NAV to Dynamics 365 Business Central Upgrade
In today’s AI and Big Data world, migrating from on-premises hosting to the cloud is something every organization needs to explore. In fact, it is the first step that most businesses must take in their digital transformation journey. Remote work environments driven by COVID-19 have further intensified the need to move to the cloud. Microsoft Dynamics 365 is a well-established business management system that offers rich features, better plans, and a range of advanced functionalities to offer you an easy-to-use, customizable, scalable, and affordable cloud solution.
Key reasons why Dynamics 365 is a perfect solution for your business:
- In-house department connectivity
- Better business insights
- Broad business support
- Easy to use and deploy
- Integrates seamlessly with other Microsoft products
- Improved security and compliance
Read also: Seven Tips to Find the Right Dynamics 365 Implementation Partner
Five Reasons Why Migrating from Dynamics NAV to Dynamics 365 Business Central is Important
Here are the top reasons to not delay your migration to Dynamics 365 in the cloud:
- Enhanced Security
Microsoft Dynamics 365 provides more robust security than on-premise ERP solutions, especially since a legacy giant Microsoft has built unique solutions for healthcare and financial services businesses. Migrating to robust cloud solutions like Microsoft Dynamics 365 makes it easier to track and locate organizational data, who has access to it, and how the business uses that data.
- One Centralized Location for All Your Data
Dynamics NAV to Business Central migration in the cloud offers complete visibility into your client’s business regardless of the number and type of remote locations they are working from.
The platform enables seamless, faster, and data-driven decision-making for your clients with various reporting tools that feature predictive analytics, Power BI, and artificial intelligence.
It also gives your clients a holistic view of the entire organization, customers, and the competitive and economic factors influencing customer needs, behavior, and expectations.
- Cost Efficiency
Moving to Dynamics 365 in the cloud can significantly reduce operating costs for your customers. This includes labor, admin, deployment equipment, and warehouse space.
A recent report also suggests that organizations moving to the cloud were able to reduce the TCO by an average of 10.25%.
Another substantially reduced cost, compared to on-premise, is deployment—between 30-50%. Businesses can save up to 40% on administrative expenses such as storage use, storage management, server backups, disaster recovery costs, restorations, and software updates.
- Anytime, Anywhere Access
Migration to Dynamics 365 in the cloud makes it possible to access data and other business tools from any device or location or move seamlessly between different devices without the risk of critical data loss or hours of work. Moving to the cloud is an essential requirement, especially in the age of remote or hybrid work culture, global business partnerships, and distributed teams.
- Benefit of Optimized IT Resources
A report by Gartner suggests that CIOs need to re-evaluate their existing use cases to optimize their technology investments and identify new opportunities to invest in various innovative solutions for future growth. Likewise, a McKinsey report offers various suggestions, including ways to improve the customer experience, identify new business models powered by cloud technologies, and reinvest cost savings into different new revenue streams.
When you migrate to Dynamics 365 in the cloud, you can help customers look beyond existing resources. You can identify new and exciting opportunities to offer excellent customer service, bridge the gap between sales and customer service, and simplify the document signing process. All are areas where Dynamics 365 can save time which can be strategically spent on understanding customers and developing innovative solutions that align with their unique business needs.
Related: Upgrading from NAV to Business Central – Insights and answers to FAQs
DemandDynamics: Class-leading Expertise and Support to Migrate Dynamics NAV to Dynamics 365 Business Central
Microsoft Dynamics 365 consists of various intelligent business applications, including CRM and ERP, that can be instrumental in helping you run your business and deliver excellent results through predictive, AI-driven insights. When appropriately implemented, it allows your organization to see business and customer data in one place, conveniently share that data across various lines of business, and enable a more strategic and well-defined approach to accelerate overall business results.
DemandDynamics’s Microsoft Dynamics 365 services organizations offer a high-quality, consistent, and predictable way to empower teams to connect the entire customer experience. We offer robust technology solutions and strategic business advice that span functions including sales and marketing, field service, customer service, finance and operations, and eCommerce. With many years of experience in Dynamics 365 implementation and solutions, we enable organizations to extract the maximum value from these technology investments, especially in the post-COVID world.
Get in touch with us to learn more about how we can help you migrate to Dynamics 365 in the cloud.
The post Top Five Reasons to Migrate Dynamics NAV to Dynamics 365 Business Central in the Cloud | 2022 appeared first on ERP Software Blog.