The Cost of Standing Still with Legacy ERP

The rise and fall of Blockbuster has become something of a modern parable in both business circles and households alike. The message is simple, if a little cliché: If you don’t evolve with the times, you may just become obsolete. It’s easy to nod along with that idea when the story is about video rentals. But in practice, adapting your products, workflows, or technology stack isn’t so simple. Take enterprise resource planning (ERP) technology, for example. 

Most enterprise leaders have heard the pitch for cloud-based ERP systems more times than they can count. They know the benefits—greater agility, reduced costs, better scalability. Yet, when it comes time to act, many stay put with their legacy systems. 

Here’s the paradox: While moving to a modern cloud-based ERP solution is undeniably a significant undertaking that comes with its own risks, the greater risk lies in doing nothing at all. The longer companies cling to outdated systems, the more they accumulate hidden costs, operational bottlenecks, and lost opportunities, costs that compound quietly until they can no longer be ignored. 

So, let’s explore why standing still with legacy ERP isn’t a neutral choice but a costly one. 

The Hidden Costs of Standing Still 

At first glance, keeping a legacy system like Microsoft Dynamics AX or GP in place may feel like the safer option. No disruption, no retraining, no new implementation headaches. But in reality, the costs of standing still add up quickly: 

Rising maintenance costs: As AX and GP age, companies face escalating hardware expenses, mounting support fees, and shrinking pools of talent with the skills to maintain these systems. What once felt familiar and stable can become increasingly expensive and brittle. 

Support timelines: Microsoft has already halted updates and official support for the latest version of AX, while mainstream support and extended security updates for Dynamics GP will sunset in 2029 and 2031, respectively. Once those windows close, companies are forced into costly extended support agreements or left exposed to security and compliance risks. 

Integration friction: Modern tools, including AI-driven analytics, ecommerce platforms, and supply chain visibility software, rely on fast, clean data exchange. Legacy ERPs weren’t built for that world, forcing IT teams into expensive patchwork solutions that never quite deliver the agility leaders expect. 

Decision debt: With slower access to data and limited reporting capabilities, companies may find themselves making decisions weeks or months behind competitors. In fast-moving markets, that delay is a serious competitive handicap. 

Ultimately, standing still is falling behind, one hidden cost at a time. 

Common Risks in the Transition to the Cloud 

Of course, acknowledging the cost of inaction is only half the story. Making the leap from AX or GP to a cloud-based system like Dynamics 365 Finance and Supply Chain Management isn’t without its challenges, and leaders are right to approach the transition with caution. A move of this scale requires rethinking how data, processes, and people align with a new digital reality. 

Common risks include data migration pitfalls, where inconsistent or incomplete records from legacy systems can slow down or compromise the implementation. There’s also the risk of process disruption, as long-standing workflows may not map neatly to Dynamics 365 Finance and Supply Chain Management’s functionality. 

On top of that, organizations often face change fatigue, with teams reluctant to let go of familiar AX or GP practices. And finally, there are customization gaps. Those critical functions that were heavily tailored in AX or GP must be identified and addressed to ensure they aren’t lost in the move. 

Handled poorly, these risks can make the transition as costly as standing still.  

Strategies to De-Risk the Move 

Recognizing the risks of an ERP transition is important, but it’s equally important to understand that with careful planning and the right strategy, these risks become manageable hurdles. 

Companies that succeed in moving from AX, GP, or another legacy system to Dynamics 365 Finance and Supply Chain Management do so by approaching the project methodically, treating it less like a single “big switch” and more like a structured, de-risked journey. Key strategies include: 

Comprehensive assessment: Start with a clear inventory of current processes, customizations, and data quality to understand what must carry forward, what can be simplified, and what should be retired. 

Phased migration: Reduce disruption by running the legacy system alongside Dynamics 365 Finance and Supply Chain Management during rollout, allowing teams to adjust gradually while keeping critical operations stable. 

Data cleansing and governance: Address inconsistencies and errors before migration, ensuring that the new system begins with reliable, trusted data. 

Testing and validation: Use sandbox environments to simulate business scenarios and workflows before go-live, catching issues early and giving teams confidence in the system. 

When paired with the advantages of the cloud, these strategies not only minimize risk but also unlock long-term value. Dynamics 365 Finance and Supply Chain Management provides a single source of truth for finance and supply chain data, embedded analytics and AI-driven insights, secure and scalable cloud-based access, and seamless integration with Microsoft tools like Power BI, Teams, and Office 365. 

Taken together, the risk of change is far outweighed by the cost of standing still. 

The Role of Expert Partners in Risk Reduction 

Even with a solid strategy in place, the complexity of moving from a legacy ERP to a cloud-based system can be overwhelming. This is where the right implementation partner makes all the difference.  

Working with an experienced partner like Sikich helps organizations reduce risk, accelerate time-to-value, and ensure the transition delivers lasting benefits. Here’s what to look for in a partner — and how Sikich delivers on all fronts: 

Industry-Specific Implementation Experience 

Every sector, from manufacturing and distribution to professional services, has its own unique requirements. 

Sikich brings deep vertical expertise, tailoring cloud-based ERP systems to align with the compliance standards, workflows, and competitive pressures of your industry. That means less guesswork, fewer surprises, and a solution designed to fit your business, not the other way around. 

Structured Change Management 

ERP projects are never just about technology; they’re about people. Without the right approach to training, communication, and adoption, even the most advanced platform can fail to deliver results. 

Sikich provides a structured framework for change management, helping teams understand not just how to use Dynamics 365 Finance and Supply Chain Management, but why the new system empowers them to work more effectively. This ensures buy-in across the organization and minimizes the risk of change fatigue. 

Best Practices from Previous Migrations 

With a long track record of guiding companies through the same journey, Sikich has seen what works and what doesn’t. This institutional knowledge enables clients to sidestep common pitfalls, leverage proven methodologies, and move forward with confidence, knowing their partner has successfully navigated similar challenges before. 

Make the Move with Confidence 

The transition to Dynamics 365 Finance and Supply Chain Management doesn’t have to be a leap into the unknown. With Sikich as your partner, it becomes a structured, de-risked transformation that positions your organization for long-term success. 

Ready to see what modern ERP can do for your business? Get in touch with a Sikich Technology expert to ask questions, schedule a demo, and take the first step toward becoming future-ready.