Considering Moving Your On Premise ERP System to the Cloud?

Considering all of the installation options available with today’s ERP software, it may make sense to use a Microsoft Dynamics ERP consultant during the process, particularly if moving from an on-premise ERP system to a cloud-hosting service.

Granted, the deployment of Dynamics ERP within Microsoft Azure, for example, doesn’t require ditching existing systems while “simultaneously” moving services, and even infrastructure, to the cloud . This latter scenario is commonly referred to as a big bang adoption versus the more incremental steps with a phased adoption.

In either case, the elephant in the room is often an on-premise ERP system, one that has been over-customized and operating on local networks for some time, and does that effect how the upgrade will work, how much will it cost, and can it be done efficiently? Still there is the need for companies to upgrade their Dynamics GP, for example, they may be facing extensive hardware and maintenance costs should they decide to keep their system on-premise.

Some questions to consider when switching from an on-premise system to the cloud include:

-        Do you focus on year 1 costs or a long-term TCO?

-        What is the state of your IT resources?

-        What is the nature of your system integrations?

-        Does your organization have experience with Cloud?

-        What is your history with Application upgrades?

-        Rate your readiness for ‘out-of-the-box’?

-        How are your users distributed?

No doubt, after years of customizing programs and adding applications, SMB owners may push back on the idea of SaaS for their GP platform. For one thing, they may own a perpetual license for their GP software, which gives the company the right to use the software, basically, forever. By using a cloud consultant, owners receive help navigating such choices as subscription licensing, the latter offering more scalability, plus updates and upgrades as a forum on Quora points out:

“Perpetual License: One time payment. Validity – Perpetual. Entitlement – Software license alone. Annual support, updates and upgrades are not included and can range from 18-25% of total cost of acquisition.

Subscription: Annual, recurring payment. Validity – 12 months. Entitlement - software license, support, updates and upgrades.”

Also there is the option for companies to simply move their on –premise software from the in house servers to a private datacenter or to the Microsoft Azure cloud. There benefits include:

-        Relieving your IT Department from having to manage the ERP software, backups, integrations, etc.

-        Improved System Performance & Accessibility

-        Not having to buy new servers every 4-5 years

-        Ability to scale up and down very quickly including user count, size/speed of your servers, etc.

-        Cloud environments foster collaboration & better application delivery

-        Quicker upgrades/updates

-        Disaster Recovery and Uptime is guaranteed to 99% and above

-        Lower TCO

The benefits of embracing today’s ERP cloud technology through Microsoft Azure, as noted in PC World, provide SMB's many opportunities to cut IT costs, while expanding collaborative and mobile capabilities.

Contact us to learn more.

Written by B.L (Consulting team)


by Technology Management Concepts

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