What's the Future for Microsoft Dynamics GP and Your Business? Know your options.
If you’re a Dynamics GP user, the last few years may have confounded you.
Is Microsoft going to continue to support GP or not?
The short answer is: Yes, absolutely, they will continue to support GP for the foreseeable future. 100%!
The long answer, however, is a bit more complicated.
Microsoft’s commitment to GP
Microsoft has committed to supporting GP at least through 2028.
For users running GP 2016 or newer, new releases are available under the Modern Lifecycle policy. Older GP users will remain under the Fixed Lifecycle policy. GP provides three updates every year. New capabilities are introduced with the October release, while others usually provide hotfixes, tax revisions, and regulatory updates. Users can stay current by taking at least one planned GP release during the year (typically June, October & December).
Shortly after Community Summit last Fall, Mike Morton, Microsoft’s VP of Dynamics 365 Business Central, clarified some statements that were made by Microsoft. In his LinkedIn post, Mr. Morton said:
- “New releases will contain regulatory (tax), security updates, and hotfixes, ensuring GP remains current.
- “New releases will also include updates in usability, reliability, addressing top customer issues, and other critical areas in ensuring businesses run successfully on GP.
- “At Summit, we did make a statement about ‘new features.’ This intent was to share that we do not expect significant new capabilities in Dynamics GP, such as new modules. Microsoft’s major investments and innovations will be in other Dynamics 365 offerings.”
Microsoft announces the end of new GP sales
In addition, Microsoft announced this year that they will stop all new sales of Dynamics GP by 2026. According to an MSDynamicsWorld report, “Microsoft will stop selling new perpetual licenses for new customers of Dynamics 365 Business Central on-premises and Dynamics GP in October 2025. And the sale of new Dynamics GP subscription licenses for new customers will end in October 2026.”
So, where does that leave GP users?
While none of these announcements should impact existing GP users, it is cause for serious reflection about GP’s future. Microsoft has made it clear that it will:
- Not develop a cloud-based version of GP. GP users looking to take advantage of a true cloud-based ERP should look to Dynamics 365 Business Central.
- Not invest significant time and resources into adding new functionality to GP beyond security and regulatory updates along with hotfixes. GP users wanting more functionality will need to rely more and more on Independent Software Vendors (ISVs) for add-on products or GP partners for custom development.
- Discontinue selling the product within the next three years. Customers continuing to pay licensing and support costs for the product should ask where those fees are going if they are not to add new functionality to the product.
Time to consider your options
Since GP will be supported for at least another five years, GP users have time to consider alternatives and select a path forward for replacing their ERP.
However, for users considering a change to a different ERP, we recommend you include Dynamics 365 Business Central on your shortlist. GP users moving to Business Central can take advantage of the feature-rich Power Platform along with price incentives for GP users current on maintenance to stay within the Microsoft Dynamics product family. Contact ArcherPoint today to see what the Microsoft family of products offers and for price incentives.