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Upgrade from Dynamics AX to D365 FO

Updated: Nov 3, 2022

Microsoft D365

Is your organization evaluating whether to transition your Dynamics AX solution to Finance and Operations apps in the cloud or stay on-premises? To determine whether this is the right move, you’ll need to understand the economic impact of your current AX solution and how this compares to D365 in the cloud.

Based on experience working with hundreds of organizations, typically see the economic impact in three important areas:

1. The total cost of ownership (TCO)

The starting point is a financial estimate of the economic value of an investment against the total direct and indirect cost savings over your system lifecycle. The TCO estimate considers six cost areas to visualize the transition to the cloud.

2. Business performance improvement

A move to the cloud offers significant potential to improve business performance with improved productivity, capability, and business insights.

Organizations have often observed that increased automation, a better user experience, reduced rework, and enhanced forecasting increase company-wide productivity. In addition, real-time data analysis and streamlined processes can help enhance forecasting accuracy, improve quality, reduce waste, and prevent delays.

D365 cloud solutions typically perform better than on-premises with operating costs, schedule compliance, and on-time delivery. Overall, this can lead to improvements in the cycle time of key business processes, together with improved operational efficiency materializing in increased profit margins. The business outcomes (KPI impact) from the use of cloud ERP varies across industries.

3. Accelerated time-to-value

The journey to the cloud brings with it huge opportunities to become more agile and respond ever-faster to changing demands.

Organizations are frequently able to continuously improve, with faster deployment, more frequent updates, and a faster capability enhancement process.

“The business is not waiting for IT anymore. We are now seen as an enabler, not a roadblock.”

In addition, businesses can adapt more quickly, scaling to new sites or geographies or improving the time to onboard newly acquired businesses. This accelerates the time to standardize and improve performance together with gaining consistent global performance insights.

Finally, organizations can become more data-driven with new insights based on more robust data gathering and real-time availability to drive innovation. These insights support improved strategic planning and new operating models.

Next steps

Want to explore the benefits of migrating? Engage your Microsoft account manager or partner to see if you qualify for various offers, including the Dynamics AX and Dynamics CRM migration assessments. For migration questions,


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