Forrester Consulting recently released a report that analysed the benefits and intricacies of migrating from the legacy, on-premise Dynamics AX system to Dynamics 365 in the cloud. Here’s an overview of the key statistics to show you that the upgrade is worth it.
With on-premise ERP systems, businesses often need to pay for licensing and support fees on top of their hardware and general ERP maintenance costs. When you upgrade to Dynamics 365 in the cloud, these fees are included with the subscription fees.
Businesses with global operations, in particular, can benefit from the consolidation of their user licences. Dynamics 365’s centralised functions means that they can downgrade their user license type or avoid redundant users altogether.
There are many infrastructure costs associated with on-premise systems. For example, infrastructure upgrades, hardware maintenance, software licensing and even cooling. And infrastructure costs often increase as the systems age and performance deteriorates.
After migrating to the cloud, you can save on all that. There’s no need to invest in further hardware and software costs, or server maintenance.
While we’re on the topic of physical infrastructure maintenance, let’s talk about the IT labour required. With on-premise systems, IT staff will need to manage and maintain these deployments. Upgrade to the cloud and you no longer need to.
For example:
Because your IT staff no longer need to spend as much time maintaining your on-premise infrastructure, they can now focus on their other day-to-day tasks.
For example, Dynamics 365 enables better, more accurate data capture so your IT team can now spend time analysing and improving processes.
Managing multiple disparate systems can impact productivity and lead to inefficiencies in your supply chain. Dynamics 365 boosts visibility as data is consolidated. This greatly enhances your overall operational efficiency.
On-premise systems can affect overall team productivity. For instance, redundant, manual tasks can be commonplace as a result of siloed departments and data.
Dynamics 365 brings data together from multiple sources, boosting visibility across the company (regardless of geography). Now your teams can collaborate with each other, no matter which department or location they’re working in, sharing files, knowledge and more.
Leading from the above, consolidated data means your staff can spend less time looking for the information they need and more time focusing on the tasks that really matter. This can improve efficiency by up to 66% as culture siloes are no more.
Although an ERP upgrade is often a complex, arduous task, there are many benefits to migrating. To read more about the benefits of switching to Dynamics 365 from the legacy AX system, check out our resource.
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