Discover the future of Microsoft Dynamics GP. Learn about the end of new license sales, ongoing support, and the shift towards cloud-based Dynamics 365 for enhanced capabilities.
Key Takeaways
- End of New License Sales: Perpetual licenses end in 2025, subscription licenses in 2026.
- Continued Support: Existing customers receive support and updates according to Microsoft’s lifecycle policies.
- Transition to Cloud: Microsoft focuses on Dynamics 365, encouraging users to transition for enhanced capabilities.
- Strategic Decisions: Businesses must choose between continuing with Dynamics GP or migrating to Dynamics 365 for future-proofing.
Is Microsoft Dynamics GP being discontinued?
Microsoft Dynamics GP is not being discontinued, but Microsoft will end new perpetual license sales by 2025 and subscription licenses by 2026. Existing customers will continue to receive support and updates through Microsoft’s lifecycle policies.
Microsoft Dynamics GP (Great Plains) has long been a significant player in the enterprise resource planning (ERP) market, offering mid-sized businesses comprehensive solutions for financial management, inventory control, human resources, and business intelligence.
As Microsoft pivots towards cloud-based solutions, questions about the future of Dynamics GP have arisen, such as:
- Is the solution being discontinued?
- How long is the solution being supported for?
- Can I still buy new licenses of Dynamics GP?
- Do I have to move to a new solution?
This blog post aims to provide a detailed analysis of the current status and future prospects of Microsoft Dynamics GP.
What is Dynamics GP?
Dynamics GP is a robust ERP solution designed to help mid-sized businesses streamline their operations. Originally developed by Great Plains Software in the 1980s, it was acquired by Microsoft in 2001.
Over the years, Dynamics GP has evolved to offer extensive functionality in areas such as financial management, supply chain management, project accounting, human resources, and payroll.
Its flexibility and reliability have made it a popular choice for businesses looking for an ERP solution that can be tailored to their specific needs.
Microsoft’s ERP Strategy Shift
Transition to Cloud Solutions
In recent years, Microsoft has shifted its focus towards cloud-based solutions, particularly the Dynamics 365 suite. Dynamics 365 integrates CRM and ERP capabilities, offering businesses a comprehensive suite of tools that leverage the power of the cloud for greater scalability, flexibility, and intelligence.
This move aligns with broader industry trends favouring cloud computing and SaaS (Software as a Service) models, which provide numerous benefits over traditional on-premise solutions.
Impact on Dynamics GP
While Dynamics GP remains a supported product, Microsoft’s strategic emphasis is clearly on Dynamics 365. This shift has raised questions about the long-term future of Dynamics GP, prompting businesses to consider their options and evaluate the benefits of transitioning to cloud-based solutions.
Dynamics GP: What's Next?
Find out if Microsoft Dynamics GP is being discontinued and what it means for your business. Discover alternative solutions today.
The End of Sales of Dynamics GP Licenses
Perpetual Licenses Ending in 2025
Microsoft has announced that it will stop selling perpetual licenses for Dynamics GP by the end of 2025.
Perpetual licenses, which allow customers to use the software indefinitely after a one-time purchase, have been a popular option for businesses looking for a cost-effective ERP solution.
The discontinuation of perpetual licenses reflects Microsoft’s broader strategy to transition customers to subscription-based models and cloud solutions.
Subscription Licenses Ending in 2026
In addition to the end of perpetual licenses, Microsoft has also announced that it will stop selling subscription licenses for Dynamics GP by the end of 2026.
Subscription licenses provide customers with access to the software on a pay-as-you-go basis, often including updates and support as part of the subscription fee.
This move further underscores Microsoft’s commitment to its cloud-first strategy and the Dynamics 365 suite.
Implications for Existing Customers
While the end of new license sales marks a significant shift, it is important to note that existing Dynamics GP customers will continue to be able to purchase licenses and will still receive support and updates.
Microsoft has committed to supporting Dynamics GP through its established lifecycle policies, ensuring that businesses currently using the software can continue to do so with confidence.
Official Support for Dynamics GP
Lifecycle Policies
Microsoft’s lifecycle policies for Dynamics GP provide a clear roadmap for support and updates. Each version of Dynamics GP receives mainstream support for five years from its release date, followed by extended support for additional years.
This support includes critical security updates, regulatory compliance fixes, and other essential updates.
Current Support Roadmap
The support roadmap for Dynamics GP is outlined in the graphic below:
Fixed Lifecycle
- GP 2013 and 2013 R2: Mainstream support ended on April 14, 2020, with extended support ending on April 11, 2023.
- GP 2015 and 2015 R2: Mainstream support ended on April 14, 2020, with extended support ending on April 8, 2025.
- GP 2016 and 2016 R2: Mainstream support ended on July 13, 2021, with extended support ending on July 14, 2026.
- GP 2018 and 2018 R2: Mainstream support ended on January 10, 2023, with extended support ending on January 11, 2028.
Modern Lifecycle
Dynamics GP: Governed by the Modern Lifecycle Policy, which includes continuous updates and support as long as the product is in use and adheres to Microsoft’s policy guidelines.
Current Version and Updates
Latest Version
The latest version of Dynamics GP, 18.6, was released in October 2023. This version includes several enhancements across various modules, improving overall functionality and user experience. Key updates include enhancements in financial management, sales order processing, human resources, and system performance.
Regular Updates
Microsoft continues to release regular updates for Dynamics GP, including year-end updates to ensure compliance with regulatory changes and tax updates. These updates are crucial for businesses to maintain compliance and take advantage of new features and improvements.
User Experience Improvements
Recent updates have focused on enhancing the user experience, making the software more intuitive and easier to use. This includes improvements to the interface, streamlined processes, and better integration with other Microsoft products, such as Power BI and Office 365.
The Future of Dynamics GP
Continued Support
Despite the end of new license sales in 2026, Microsoft remains committed to supporting Dynamics GP. Businesses currently using the software can continue to rely on it for their ERP needs, with the assurance that critical updates and support will be available through the established lifecycle policies for the foreseeable future.
Transition to Dynamics 365
While Dynamics GP remains a viable option, Microsoft is encouraging new customers and existing Dynamics GP users to consider transitioning to Dynamics 365 solutions such as Business Central or Finance & Supply Chain Management.
Dynamics 365 offers several advantages over traditional on-premise ERP solutions, including:
- Cloud Capabilities: Dynamics 365 leverages the power of the cloud, offering superior integration with other Microsoft services, such as Azure, Power BI, and Office 365. This provides a more cohesive and powerful suite of tools for businesses.
- Scalability: The cloud infrastructure of Dynamics 365 enables businesses to scale their operations more easily, adapting to growth without significant infrastructure investments.
- Innovation: Microsoft is investing heavily in artificial intelligence, machine learning, and advanced analytics within Dynamics 365. These innovations provide functionalities that are not available in Dynamics GP, offering businesses more sophisticated tools for decision-making and process optimisation.
Strategic Considerations for Businesses
Businesses currently using Dynamics GP face a strategic decision: continue with Dynamics GP or migrate to a newer platform like Dynamics 365. Here are some factors to consider:
Staying with Dynamics GP
- Stability: For businesses with highly customized GP environments or those not ready to transition to the cloud, sticking with Dynamics GP ensures stability and continuity.
- Support: With Microsoft’s commitment to ongoing support, businesses can continue to rely on Dynamics GP for the foreseeable future.
Migrating to Dynamics 365
- Future-Proofing: Moving to Dynamics 365 can help businesses stay ahead with cutting-edge technologies and capabilities.
- Integration: For companies already using other Microsoft cloud services, Dynamics 365 offers seamless integration and enhanced functionality.
- Cost-Effectiveness: While there may be initial costs associated with transitioning to Dynamics 365, the long-term benefits of reduced infrastructure costs and increased efficiency can offset these expenses.
Get started with Cloud Tranformation
Microsoft Dynamics GP is not being discontinued, but the strategic focus is undeniably on its cloud-based Dynamics 365 suite.
As you weigh your current needs, future goals, and the advantages of newer technologies, it’s crucial to stay informed about Microsoft’s ERP roadmap and understand the benefits and limitations of each platform.
Navigating the future of your ERP solution can be complex, but you don’t have to do it alone. At Mercurius IT, we specialize in providing expert support for Dynamics GP and guiding businesses through seamless transitions to Dynamics 365.
Whether you need continued support for your current Dynamics GP system or are exploring the benefits of moving to Dynamics 365, our experienced team is here to help.
Contact us today using the form below to learn more about how we can assist you in optimising your ERP strategy and ensuring your business remains future-ready.
