The Future of Dynamics GP?

Microsoft has recently released details outlining their intentions for the foreseeable future with Microsoft Dynamics GP. As a current Dynamics GP user, you are probably wondering how this announcement impacts you. Let’s break it down.

The announcement included the following:

  • April 1, 2025 – End of Perpetual license sales for GP to new customers. New customers can still purchase GP on the Subscription license model after this date.
  • April 1, 2026 – End of Subscription license sales for GP to new customers. No new GP sales to new customers after this date.
  • Even though GP sales to new customers will end in April 2026, as an existing GP user you can continue to purchase new licenses and modules beyond 2026.
  • 1-year enhancement plan renewal rates will increase by 1% for plans renewing on or after October 1, 2023.
  • 3-year enhancement plan renewal rates will increase by 3% for plans renewing on or after October 1, 2023.

What does Microsoft’s announcement mean for me today?

Great news! Microsoft’s announcement confirms no immediate changes for existing Dynamics GP users!

Microsoft’s modern lifecycle of supporting existing Dynamics GP customers who stay current on their version of GP through “2028 and beyond” has not changed. Existing Dynamics GP customers will continue to receive regulatory (tax) updates, security updates, and hotfixes.

Microsoft’s enhancement plan renewal rates will be increasing on October 1, 2023, and we expect to see similar increases to the renewal rates each year.

What does the future hold for Dynamics GP?

Microsoft’s statement on its continued commitment to Dynamics GP:

This change in new customer availability does not impact Microsoft’s commitment to provide regular regulatory (tax) updates, security updates, and hotfixes to ensure the current version of Dynamics GP remains up to date, including any usability and reliability updates needed to address top customer issues that are critical in ensuring businesses run successfully on Dynamics GP. However, as previously announced, Microsoft’s major investments and innovations will continue to be directed towards Dynamics 365 products.

In addition to the regulatory and security updates and hotfixes, Microsoft plans to continue introducing new features in future releases. Interested in influencing what new features might be in future releases? Provide suggestions and vote up existing suggestions here.

While Microsoft’s Dynamic GP Support Lifecycle has not changed, the message is clear that cloud-based solutions will be Microsoft’s primary focus moving forward. This is what we are seeing with other software manufacturers, as well.

Whether or not you intend to stay on Dynamics GP through “2028 and beyond,” now is the time to begin conversations around planning your migration from Dynamics GP to a cloud-based application.

Where do I start? What do I need to consider?

Your initial discussions should include an understanding of:

  • Cloud-based applications that would be a good fit for you
  • A reasonable timeline for when you want to start the migration
  • An idea of a typical timeline for the migration and implementation
  • High level cost estimates for budgeting purposes
  • Your options for your historical data in GP
  • What you can do now to prepare

Microsoft Dynamics 365 Business Central is a comparable cloud-based solution for many Dynamics GP customers. At Sikich, we use a migration path that includes a GP to BC Migration Assessment Tool to analyze our clients’ GP database(s) and identify migration risks in GP that should be addressed ahead of time for a more successful migration to Dynamics 365 Business Central

Want to learn more from Sikich’s GP to BC experts? Reach out to us and find out how Sikich can help you strategize your short-term or long-term roadmap to a cloud-based solution.

This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.

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