Benefits of Migrating to Dynamics 365 in the Cloud from On-Premises
Updated: May 16
The cloud hardly feels disruptive in 2022. After all, the migration of on-premises hosting to the cloud has been an urgent matter for years and is indeed a critical first step in any digital transformation journey.
The pandemic has further solidified the cloud’s place in the IT stack. We’ve seen organizations struggle to meet the needs of newly remote employees, as well as customers looking for better digital products and experiences to cope with the same challenges.
We’re seeing more organizations move on-premises applications into the cloud, in part, due to incentives from software companies like Microsoft to migrate to new, cloud-based versions for their Dynamics GP, NAV and Solomon programs.
In these next few sections, we’ll explain what Microsoft users stand to gain in migrating their Dynamics 365 On-premises to the cloud.
Why Migrate D365 from On-Premises?
The cloud is essential for business growth and survival. According to IDC’s The Impact of Digital Transformation During Times of Change report, digital transformation initiatives like integrating customer touchpoints, operationalizing data, and gaining a 360-degree view of the customer became top priorities due to the pandemic. As discussed in the report (see fig. 4), all priorities fall apart without the cloud.
The findings also reveal a sense of regret among participants. The majority of respondents shared that the disruption was much less than anticipated. The value of the added security on the Microsoft platform led them to share that this should have been a priority much sooner.
The point is, organizations need cloud services to leverage technologies, enhance security and provide advanced analytics that will help them compete. It’s challenging to work quickly and make good business decisions when your data lives in different systems, and brands are beginning to face the consequences of avoiding the cloud.
Key Benefits of a Microsoft Dynamics 365 On-Premises to Cloud Migration
Much of what your Dynamics 365 on-premises to online migration will provide a confident and competitive status as well as building a more agile business. However, if you’re looking to get more specific, here’s a look at some of the greatest benefits of moving to the cloud:
Bring All Data Into One Central Location
Migrating your Dynamics system to the Microsoft cloud provides complete visibility into your business no matter how many locations are in the mix or whether your teams are working remotely.
With reporting tools that feature Power BI, predictive analytics, and artificial intelligence, organizations get an agility boost – enabling faster, data-driven decision making.
You’ll have an enhanced view of your entire company, your customers, and the competitive and economic forces influencing customer behavior, needs and expectations.
You can also unlock new business models and improve forecasting efforts as well as optimize project management and inventory planning for cost savings. The list goes on.
The point is, when you’re working with on-prem solutions, teams can easily end up working with static reports loaded with old, incomplete, or inaccurate data. As a result, this undermines the entire business strategy.
It’s also worth noting that even in cases where teams do have great data in their on-premises systems, they often have trouble accessing and acting on insights fast enough to keep up with competitors.
This of course, becomes a larger issue when workers are spread across multiple locations or are working remotely.
Implemented correctly, Dynamics 365 online stands to slash operating costs associated with labor, equipment, warehouse space, admin, deployment, etc. Instead, it’s on Microsoft to handle updates, security and routine maintenance.
According to a Forrester Total Economic Impact Report, organizations that made the move to the cloud were able to accomplish the following:
- Reduce the TCO by an average of 10.25%
- Slash deployment costs by 30-50% on average, compared to on-premises customers
- Save 40% on administrative expenses like server backups, storage use, restorations, and software updates
- Additional savings on disaster recovery costs, hardware, and storage management
Microsoft Dynamics 365 offers more robust security than on-prem ERP solutions. The cloud is now much more secure than analog solutions and most on-prem options. Sure, you’ll find plenty of ‘hard copy holdouts’, but things have changed since the early days of the cloud.
Part of the reason is that legacy giants like Microsoft, IBM, and Amazon got into the cloud game and built solutions for businesses operating in healthcare, financial services, and the public sector.
Cloud solutions like Microsoft Dynamics make it easier to control where your data is stored, who has access, and what resources your business is using at any given moment.
Migration can reduce the risk of ransomware attacks and data breaches and provide greater data security. Users also benefit from more control over who has access to the system and how sensitive information is processed and stored. This is critical in a time where we’re seeing more high-profile hacks targeting private organizations.
We’ve reached a point where it’s become a significant risk for companies to manage cybersecurity on their own and the costs of getting it wrong can be devastating. All it takes is one exposed endpoint or missed update and hackers can get into your system and wreak havoc.
According to the NTT Global Threat Intelligence report, traditional (read: legacy) approaches are inadequate against modern threats. Organizations need to reimagine their cybersecurity strategies and become more proactive and adaptive, rather than reacting to new regulatory requirements and threats. Unfortunately, this isn’t possible without the cloud.
Optimize IT Resources
Existing database IT administration resources can be reallocated to other areas within your organization where they’ll be better positioned to focus on new priorities that drive up business value.
According to Gartner, CIOs should reevaluate their current use cases to better optimize tech investments and focus on identifying new opportunities to invest in the innovative solutions that will carry them into the future.
Another report from McKinsey provides some suggestions including identifying new business models unlocked by cloud technologies, looking for ways to improve the customer experience, and reinvesting cost savings into new revenue streams.
For businesses looking to reallocate existing IT resources, it’s important to look beyond available resources and identify opportunities where D365 can save you time – time better spent understanding customers and developing innovative solutions that align with their needs.
Arguably the most tangible benefits of migrating to the cloud are the ability to access data/business tools from any device or location and to move seamlessly between laptops, tablets, smartphones and desktops without losing critical data and hours of work
The cloud is a must-have in the age of remote work, distributed teams, and global partnerships. It’s also important to recognize that even if your organization is a strictly in-person operation, on-prem hosting still won’t cut it.