License Renewal & Anniversary Date:
If you are considering an upgrade to Dynamics 365 for Operations, then your license anniversary or enhancement renewal date is significant, You have the opportunity to do a full platform and license transition. There are specific incentives and license credits available to make this transition when you are on a supported product version.
The Mainstream Support End Date of your Current Dynamics AX Software Version:
If you do not opt to move to a cloud-based license model at your license anniversary, then the next important date to consider is the mainstream support end date for the current product you are using:
Support Dates for Existing Dynamics AX On-premise products:
◾AX 2009, AX 2012 R1 & R2 – Mainstream support ends in April 10, 2018; Extended support is available until October 12, 2021
◾AX 2012 R3 – Mainstream support ends on October 12, 2021; Extended support is available until January 10, 2023
Why is it important to be on a Mainstream Supported Product?
There are many reasons to be on a supported product :
1.The option to receive support updates and hotfixes – this is the forum in which Microsoft collects bugs and issues and systematically releases fixes, making the platform up-to-date and reliable.
2.Regulatory Compliance ends with Mainstream Support – this means that when your organization is legally obligated to follow regulatory compliance standards, this process will need to be manually completed.
3. Access to Customer resources.
During Extended support, Microsoft provides support for the product and will provide security-related hotfixes.
Your Dynamics Roadmap – Action Plan
So, what should all of these dates mean to you? The answer depends on many things: which version you’re currently using, the range of modules, and customisations, and integrations, your hardware investment, internet connectivity, how you are impacted by statutory changes, economic pressures, and so on..
For those on AX 2009, AX 2012 R1 & R2:
It’s ideal to be on a mainstream supported product, and extended support is available through October of 2021. In either scenario, you need to an action plan to:
◾Decide whether to stay on premise thereafter , or whether to go cloud at some point.
◾Decide to what product you’ll upgrade and whether this will be a one or two step process – AX 2012 R3 or direct to Dynamics 365 operations?
◾Identify requirements for path chosen (Data migration, customizations, process change, short term hardware investments, whether to upgrade SQL or operating systems, etc.)
◾Budget [time and money] for the requirements gathering [can last several months] and the actual upgrade
◾Identify internal/external resources to execute the project
◾Perform and test the upgrade , and train new users.
Most companies want to have the decision and plan in place before mainstream support ends – which is just over a year away – April of 2018 for 2019.
There are other incentives as to upgrading sooner rather than later.
For those on AX 2012 R3:
Like the clients on AX 2009, 2012 R1, & R2 (above), the same decisions must be made.
Do you want to upgrade to Dynamics 365 Operations?
Do you want to stay on premise?
While your mainstream support lasts longer, there are benefits and incentives to consider when deciding on a timeline for your changes.
On-premise vs. Cloud Options:
Until February 2017, existing on-premise clients only had 3 Options:
◾Stay with your Perpetual License on AX 2012 or earlier (keep paying Enhancement or Software Assurance)
◾Upgrade to Dynamics 365 for Operations and move to Subscription Only [Cloud] Model (available at license anniversary/renewal)
◾Upgrade to Dynamics 365 for Operations in a Hybrid Model (Perpetual License + Cloud Add-On)
◾ Move to Dynamics 365 for Operations subscription license but continue to use Dynamics 2012 on premise R3 for some time before moving to Dynamics 365 for Operations (‘equivalence”)
On February 23rd, Microsoft announced a new, hybrid option based on edge computing:
◾Upgrade to Dynamics 365 for Operations, but stay on premise, either with a subscription license or keep a Perpetual License model.
On Monday last week in the Tech Conference , Microsoft announced more details about the new deployment options for Dynamics 365 for Operations that will be available in Q2 2017.
In addition to a pure-cloud environment, organizations can now choose from two options on how this can work .
◾The first is a hybrid deployment (called Cloud and Edge) where critical operations processes, as an example, can remain in an on-premise database, but the power of the cloud can be harnessed for additional scalability.
◾ The second option is, essentially, on premise option. Microsoft calls this option Local Business Data, where Dynamics 365 resides in your existing datacenter.
Investment Credit and Incentives:
Most companies do their budgeting annually, so planning your roadmap should already be underway in 2017. At the Summit Conference last October, Microsoft announced a 40% discount to existing on-premise clients who want to transition to the new Dynamics 365 Cloud Platform. This incentive is active for 3 years.
If you transition in 2017, you’ll be able to leverage 2 years of discounts,
if you transition in 2018, then you’ll only be able to leverage 1 year of discounts
If you do not transition till 2019, you may not get a discount (depending on transition month).
Under Dynamics 365, licensing SKU’s, functionality and license names also changed , so there is an additional consideration to make in how your organization is licensed. Like previous license models, Dynamics 365 for Operations has different user license types – each with different user rights. The more prescriptive you can be for what your users need to access to the more accurate will be your license transition and the more money you can save.
Strategic Planning with Synergy Software Systems
Synergy Software Systems can undertake a license and environment audit to help you understand your high- level options and costs associated with those options. If you feel that cloud has exciting new functionality and integration that you’ve been looking for, use the time you have between now and your next license anniversary/renewal to look at Dynamics 365 for Operations with us and decide if it’s right for you.
If you’re on Dynamics AX 2009, AX 2012 R1 or R2, use the time between now and April 2018 to decide how to best leverage your existing investment in your ERP system in the next supported step in your Dynamics roadmap journey.
If you’d like help to better understand your options then reach out to us on 00971 4 3365589
