Leave Legacy Behind
On-Prem to Cloud ERP Migration Paths
Making the Move to Cloud ERP
Migrating from a Microsoft AX on-premises ERP system to Microsoft Dynamics 365 cloud ERP isn’t as simple as downloading the latest desktop update.
As the successor to Microsoft AX, Microsoft Dynamics 365 includes many of the same features and functionality as the legacy software, but with additional cloud-based capabilities and updates. These new capabilities – and the fact that Microsoft has discontinued support for AX – make upgrading to Dynamics 365 (D365) a wise choice for businesses that want to take advantage of the latest innovations in Microsoft’s ERP software.
But the move isn’t as simple as a software update. It’s a complex process that involves several steps.
Migration requires transferring the data and functionality of the existing system and reconfiguring and adapting the system to the new architecture and deployment model. This may involve re-architecting the existing solutions, redesigning business processes and training staff on how to use the new system. The process may also involve customization and integration of third-party applications, testing and validation of the new system, and ensuring data security and compliance with regulatory requirements.
In this eBook, we’ll explore:
• How Microsoft Dynamics 365 benefits business
• How to choose the right Dynamics 365 implementation
• How to select the right migration approach for your business
• How to evaluate your existing AX system for upgrade
• How to get started and where to go for help
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Drive Performance and Growth with Microsoft Dynamics 365
Although D365 provides many of the same features as AX, it’s a more modern and comprehensive ERP solution with many added features and improvements. Additional cloud-based capabilities make it possible for your business to:
Reduce IT Costs
The subscription-based model allows your business to scale your technology according to your needs while reducing IT infrastructure costs on hardware, software, and maintenance. Additionally, you can take advantage of the latest technology innovations, such as artificial intelligence (AI) and machine learning, without incurring significant development costs.
3.4% Savings in Total Cost of Ownership
109% In IT Savings and Business Impacts
6 Month Average Payback Period
Improve Business Agility
A subscription-based model allows your business to scale technology according to your needs while reducing IT infrastructure costs on hardware, software, and maintenance. You can take advantage of innovations, such as artificial intelligence (AI) and machine learning, without incurring significant development costs.
Improve Data Management and Security
D365 offers features that improve data accuracy and data management, such as real-time data validation, built-in AI and analytics, and centralized data management. Advanced security features, such as multi-factor authentication, data encryption, and role-based access control help to protect sensitive data and prevent unauthorized access.
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Access a More Comprehensive Collection of Tools
The enhanced functionality and integration of D365 make it a more comprehensive and flexible business solution. For example, Azure Data Lake capability allow you to pull data from external systems as well as D365 applications. Additionally, Power Platform integration enables your company to create custom applications, automate workflows, and easily analyze data.
Improve the User Experience
D365 has a modern, user-friendly and customizable interface designed to boost productivity and efficiency and provide easy access to features your users need. Additionally, it offers mobile access so users can work seamlessly across devices, including desktops, laptops, tablets, and smartphones.
Update Automatically or in Your Own Time
D365 receives continuous updates and improvements, which means you always have access to the latest features and functionalities. Updates can be paused and tested to ensure customized features and functionalities aren’t affected.
Health
Retail
Professional
Microsoft Dynamics 365 Tailored Industry Solutions
Manufacturing
& Supply Chain
& Life Science
&
Consumer Goods
Services
How to Choose the Right Implementation Path
Your business needs and your existing AX system will help determine your optimal migration path. Migrating your business's ERP system from AX to D365 is a significant undertaking, one that requires careful consideration of various approaches.
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Lift and Shift Migration
A lift and shift ERP migration lifts an existing on-premises ERP system and shifts it to a cloud-based environment without making significant modifications to the code or application architecture. This approach is often used to quickly migrate to the cloud without significant disruption to business operations. Because this process doesn’t take full advantage of the capabilities of the cloud environment, it may require additional optimization after the migration is completed.
A lift and shift approach may be suitable if your business:
• Is running AX 2012 or later versions
• Needs to migrate its data quickly and with minimal disruption
• Has a limited budget for the migration project
• Has a straightforward AX implementation with minimal customizations
• Has a relatively small amount of data to migrate
• Does not require significant changes to its business processes or workflows
Standard Migration
A standard ERP migration is a lengthy, complex process with the goal of taking full advantage of the capabilities of the cloud environment. It involves significant modifications to the code or application architecture, as well as thorough testing and validation to ensure the system functions properly.
A standard migration may be suitable if your business:
• Is running a version of AX that predates 2012
• Has a large amount of data to migrate or restructure
• Has a complex AX implementation/significant customizations or integrations
• Requires significant transformation in its business processes or workflows
• Needs to comply with industry-specific regulations or standards, requiring a more extensive security and compliance assessment
• Requires additional customization work to leverage D365 capabilities
Hybrid Migration
In some cases, an alternative hybrid migration is recommended. This approach involves migrating some parts of the ERP system using lift and shift approach while others are migrated via a standard approach. For example, a business might use lift and shift approach to transfer functionality, but a standard approach to transfer data that requires significant cleanup or enrichment prior to migration.
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Determining If a Lift & Shift Migration
Advantages of Using Lift and Shift Method:
Simplified migration
The straightforward approach makes migration quick and less complex.
Move functional configurations. Ensure your ERP system works the way it did before migration.
Quick ramp up to development
Begin customizing before the entire migration is completed and stay on track with project timelines
Targeted analysis
Identify deprecated AX features and customizations that can be replaced by standard D365 functionality.
Faster adoption
Reduce training and speed adoption with the same software and tools and similar functionalities.
Lay the foundation for future phases
Reduce disruption by adding new modules and enhancements incrementally.
Migration is Right for Your Business
Drawbacks of Using Lift and Shift Method: Limited optimization
Migrating without optimizing business processes may neglect opportunities for increased efficiency.
Migrate data errors
If you migrate your data as-is, you miss an opportunity to start fresh with clean master data.
Migrate historical transactions
Migrating without analyzing and trimming historical data can lead to unnecessary clutter and confusion.
Inefficient use of new features
D365 has new features and functionalities that may not be fully utilized.
Higher long-term costs
While upfront costs are typically lower with a lift and shift, businesses that require extensive post-migration customization may pay more in the long run.
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Evaluate Your Current
Migration preparedness is the first step toward your digital transformation.
migration would work best for your business by evaluating your D365
D365 Assessment
Identify the business processes that are critical to the organization and ensure D365 support.
Identify the current version
Determine which operations would benefit most by shifting to new D365 configurations.
Evaluate the hardware current AX environment
the minimum requirements
Identify additional opportunities or functionalities to support planned growth or that can eliminate current challenges.
Review the customizations to AX to determine if D365 or if they need to
Identify additional opportunities or functionalities to support planned growth or that can eliminate current challenges.
Determine the level needed for end-users to
Identify the requirements and capabilities to be considered for future additions.
A D365
AX On-Prem
Current On-Premise ERP
D365 Implementation Partner like Columbus can help you understand which D365 requirements, your existing system, and the quality of your data.
Assessment
version of Microsoft AX. hardware and infrastructure of the environment to determine if it meets requirements for D365. customizations and extensions made they can be migrated to be re-developed.
Data Quality Assessment
Run data consistency checks to determine the accuracy and consistency of data.
Evaluate master data to determine data quality and completeness to identify gaps and errors in critical business data.
of training and support to adapt to the new system.
Evaluate historical AX transactional data and consider whether it should be made available externally through a data warehouse or migrated to D365.
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Schedule a Meeting
Your in-house IT department can’t migrate from on-premises to the cloud alone. As your trusted digital advisor and implementation partner, Columbus will do the heavy lifting so you can focus on business development and growth.
