Posted by Indusa Admin on September 24, 2015 4:31 am
The future of Microsoft Dynamics AX is set to change your ERP, including everything from on-premises hosting to the cloud. There are many benefits and features of AX on the cloud, including improved cloud access and mobility, a new browser-based interface, a better user experience and lifecycle management.
Now that we’re in the second half of the year, it’s the right time to start thinking about how to prepare for this new version. While there are certainly various ways to prepare for Dynamics AX, it all depends where you are starting.
In this post, we’d like to help you better prepare for the future (no matter where you are in the process) in order to bring success to your ERP. We’ll present three of the most common scenarios below based on whether you are currently an AX R3 user, an AX user on an older version, or are not an AX user but thinking of implementing in the near future.
Scenario 1: You are an AX 2012 R3 user.
Great – you can upgrade to Dynamics AX! There are several angles to consider: upgrade needs, cost, and cloud readiness.
Implementation: Right now, your AX ERP is hosted on-premises on your server. Your company’s data will need to be migrated to the cloud. All applications and customizations will also need to shift to the cloud. Also consider which applications and third party solutions are already integrated with AX. Understand how you will connect those applications with your cloud AX. Selecting the right partner who can help move the existing application and customize from on-premises to cloud is critical. The upgrade process will take a few months.
Cost: As an R3 user, you paid a one-time license fee and now pay a 15-20% annual maintenance charge on whatever you have purchased. Going forward, you will have subscription-based user licenses for cloud access.
This is to your advantage for several reasons. If your business is seasonal, and you have more users for only a few months, there is no need to pay for the entire year anymore. For example, Domino’s Pizza has two days in a year where the demand is off the charts: Thanksgiving Eve and Super Bowl Sunday. It doesn’t make sense for Domino’s to purchase a huge number of servers just for two days’ worth of traffic. But with everything on the cloud, such companies can pay for just what they need and not a penny more. The same holds true as you scale up and down for any reason.
Cloud Readiness: If you are a global AX user, identify where your Microsoft Dynamics AX access will occur. You can purchase more than one access point to avoid any time delays or access issues. You should also review infrastructure needs. If you have a large number of users that you think will be on the ERP, then you may need to increase infrastructure bandwidth for speed and data usage, to connect to the cloud.
The bottom line for R3 users is that you are well positioned for a Dynamics AX upgrade, as long as you pay attention to a few issues along the way.
Scenario 2: You are an AX user, but do not have R3.
If you have not upgraded to or implemented AX 2012 R3, then you cannot go to Dynamics AX right away. The first step is to upgrade your current system, whether it’s AX 2009 or AX 2012 R2, to AX 2012 R3. Depending on which AX version you currently have, and how complex your system is, there will be different timeline implications. You will also need to pay for the upgrade. Once all of this is complete, you’ll find yourself in “Scenario 1” and migration to Microsoft Dynamics AX can happen immediately after.
Scenario 3: You are evaluating ERPs but currently are not an AX user.
Whether you have another ERP, are planning to implement an ERP for the first time, or want to go from GP to AX, you can consider going straight to the cloud, and use Microsoft Dynamics AX. Identify a good implementation partner and complete the usual business process study, fit-gap analysis, and lay down the implementation blueprint. It’s also worth doing a price comparison of the price per user per month cost of SAP, Oracle, or any other ERP vs AX. Understand what the price covers, and consider how a fully cloud-hosted solution will work to your advantage. Even if your current ERP is on the cloud, inquire where it is hosted and how efficient the hosted solution is.
As you can see, dependent upon which category you find yourself in, there will be different ways to prepare the future of Dynamics AX. Knowing how to prepare will help plan and make the upgrades and implementation process much smoother for you and your organization. Be sure to stay informed and up-to-date on any details regarding new releases and updates to Dynamics AX. Staying a step ahead will also give you an advantage over your competitors who might also be incorporating Dynamics AX into their business as well.
Besides the points stated above, how else are you preparing for your future with Dynamics AX? Do you have any other questions about what it will take to get ready, either from a technology or business point of view? Indusa’s team of implementation experts can help.
- How Project Manufacturers Can Benefit from Dynamics AX
- Transitioning from Dynamics GP or Nav to AX
- Drive Operational Excellence by Integrating Your Office and Email Systems with Dynamics AX
About the Author – Shital Shah
Shital Shah has diverse experience in management and strategic consulting with technology-based businesses. She has managed global teams and led projects in 16 countries. Shital focuses on strategic and operational planning and management for Indusa.