The marketplace is changing faster than ever before, and on-premise ERP systems simply aren’t cutting it anymore. As competitive measures mount, companies have to find ways to keep pace with this ever-dynamic environment. To lay the foundation for growth, companies are starting to realize that legacy processes and on-premise systems aren’t adequate for today’s needs. Firms are looking for ways to modernize their IT infrastructures in ways that offer visibility and scalability that’s essential for growth. For these reasons, organizations are switching to cloud-based ERP systems. These platforms provide a full view of the organization, equipping employees at all levels with access to real-time data that supports intelligent decision making.
The following is a deeper look into the reasons organizations are moving from Microsoft Dynamics GP to modern, cloud financials.
1. Companies in All Industries are Under Pressure to Modernize
We can start with the simplest reason first—in every industry, companies are facing overwhelming pressures to beat their competitors, improve customer service, and launch new offerings. While ambitious growth and expansion goals are great, they’ll only work if you have operating systems that are built for bigger things.
You have to think about your operations differently when you’re looking for more out of your organization’s potential. You have to break free of siloed workplace structures and lean on a system that offers you a single source of truth. This means you need a modern IT infrastructure that can support ambitious goals. In most cases, on-site ERP systems no longer meet the business needs of the present and future. If you truly want to grow your organization and step into the future on the right foot, you need to lean on a modern, multi-tenant SaaS platform that’ll enable you to utilize a unified data model.
2. The Cloud is Now the De Facto Standard in the Modern Business World
As a business leader, you’re expected to deliver outcomes quickly while making decisions that require as few resources as possible. Although this sounds like an impossible task for companies that are still using outdated legacy systems, organizations with cloud-based ERP systems are realizing tremendous opportunities.
The cloud has become the de facto standard in today’s business structure with many companies requiring cloud-only strategies for any forthcoming IT initiatives. Organizations that employ a cloud-first approach understand that the real value of these systems comes from the ability to delegate the Service Level Agreement (SLA) of an entire solution—from infrastructure to application—rather than focusing on individual components of the system.
3. Cloud-Based ERP Systems Offer a Variety of Benefits Over Legacy Systems
The benefits of upgrading to cloud ERP are far-reaching.
- Reduced complexity. When everything lives in a single, cloud-based system, information is easier to access and analyze.
- Increased reliability. Since everything is managed, updated, and upgraded in the cloud, modern ERP systems are always ready for the next adventure in your business.
- Reduced cost. Over time, legacy, on-site systems can cost organizations substantially more money than cloud-based systems, as they require overhead and maintenance that isn’t necessary with virtual solutions. Great cloud systems are now build with hardware, security, and operations at their core.
Overall, cloud systems offer availability, speed, agility, and TCO, all of which enable faster development processes and provider higher reliability with lowered risk.
The Definition of “True Cloud” ERP
It’s important to understand that not all hosted software platforms are true cloud solutions. Many legacy vendors are searching for ways to stay relevant in this ever-evolving, cloud-forward market. In doing so, they’re often found “cloud-washing” their applications. These fake cloud solutions are ultimately more costly, inefficient, and less scalable than their true cloud counterparts.
As you examine the differences between fake cloud programs and true cloud programs, consider the following pitfalls with cloud-washed ERP systems:
Delayed and Arduous Product Upgrades
If you’re using an on-site legacy system, you’re subjected to painful (and often expensive) upgrades each time the company you’ve choses unveils the newest version. You’re also at that vendor’s mercy to wait until they’re ready to release the latest solutions. Additionally, don’t be surprised if it takes months (or even years) to get fully updated since your vendor will need to upgrade each of its customers one by one. By that time, your updates will already be outdated.
Expensive Customizations and Unreliable Integrations
On-site solutions were not initially built for hosting. As such, when you integrate a hosted third-party solution with your existing applications, you could experience considerable aggravation and expense. You should also expect to pay upcharges for any customizations you need to satisfy your organization’s unique needs.
Excessive Downtime and Insufficient Security and Support
Providers of cloud-based services place the majority of their attention and energy on implementing the highest security. They’re also fundamentally built to ensure privacy and optimal uptime. Because of the work and manpower necessary to manage these elements with value-added resellers, many are not able to achieve the same levels as cloud-based providers.
If you’re evaluating cloud-washed ERP solutions, ask your potential service provider:
- What is uptime performance, and how can it benefit my organization?
- Is the contractual uptime guaranteed?
- Will certifications, in the examples listed below, of security and privacy be provided or posted in an easily accessible place?
- PCI-DSS security compliance
- SOC 1
- EU-US Privacy Shield framework
- NIST 800-30
- ISO 27000 standards
In the end, you might be surprised at the disappointing answers you might get to these inquiries.
Need to Over-Buy Capacity
As you grow, you may not always be certain how much capacity you’ll really require over time. As such, with a legacy or fake cloud system, you’ll likely need to over-purchase the number of software licenses to make sure you have enough.
Dynamics GP Alternatives: Your Options as You Migrate from Dynamics GP
Microsoft Dynamics GP has been trusted for decades. A tried and true technology with more than 30 years of development, the product has seen worldwide use during this time. But with unclear support schedules, a diminishing network of partners supporting it, and a lack of commitment to the long-term future of the product, customers are seeing smaller returns on their investment.
Knowing this, companies looking to see unending support, easy access, and constantly improving technology are finding that cloud products like Acumatica, NetSuite, and Microsoft Dynamics 365 Business Central can provide both leaders and management with the tools and technologies they need to get more from their business.
As a company who has worked with businesses throughout New York to help users make the most out of Dynamics GP, the MIBAR team is ready and able to help you on your move away from the platform—providing a secure, efficient, and seamless transition to a future-proof cloud product. Learn more about Dynamics GP Migrations or contact us today!