Is Microsoft Dynamics GP being discontinued?

Previously known as Great Plains, Microsoft Dynamics GP is a standalone ERP system designed for small-to-medium-sized businesses. Its core features include financial management and accounting, inventory management, operations, sales, service, HR, payroll, and reporting. Dynamics GP is a widely used and trusted enterprise resourcing planning solution that can support the long-term growth of companies. With Microsoft’s focus being directed towards Dynamics 365 in recent years, many clients have begun to wonder what the future of Dynamics GP would look like and if this reliable system would be discontinued.

In April, Microsoft announced that the sale of Dynamics GP licenses to new customers will be phased out over the next three years. Microsoft will stop selling perpetual licenses of Dynamics GP to new customers in April 2025 and will stop selling subscription licenses of GP to new customers in April 2026, at which point the all new sales of Dynamics GP licenses will be discontinued. Existing Dynamics GP customers will still be able to purchase additional users but there will be no net new instances of Dynamics GP.

Although the sale of new Dynamics GP licenses will be phased out, Microsoft has reaffirmed their commitment to continue to honor the lifecycle roadmap for Dynamics GP that shows support for the product until at least 2028. Even though Microsoft has promised support for Dynamics GP to 2028 it is clear that Microsoft R&D dollars are being shifted from Dynamics GP to the Dynamics 365 family of cloud-based products and most of the updates to Dynamics GP will be related to hotfixes and tax and regulatory updates.

Versions of Dynamics GP prior to October 2019 are on a Fixed Lifecycle policy, which means the product support has a definitive end date. There are different phases of support under the Fixed Lifecycle policy. The first phase of this policy is Mainstream support and includes hotfixes, payroll updates, tax updates, and year-end updates for five years. After that time, Extended support is available for another 5 years which offers more limited support from Microsoft for issues that are security related. After Extended support has ended, clients are not able to receive product support from Microsoft. Mainstream support has ended for all version of Dynamics GP on the Fixed Lifecycle policy.

In October 2019, Microsoft switched Dynamics GP to its Modern Lifecycle policy. This policy means GP customers on newer versions of Dynamics GP will receive support, hotfixes, feature updates, and tax updates three times a year without a fixed end date. This policy leaves customers uncertain of how long Microsoft will continue to support Dynamics GP after the sale of new GP instances is discontinued in 2026.

With Microsoft’s announcement of discontinuing new sales of Dynamics GP, GP users have a couple of options on how to move forward with their system.

Migrate to a new ERP system

If you are concerned about the end of life of Dynamics GP or GP is no longer a good fit for your organization, you may be interested in migrating to a new ERP system that aligns better with your needs. By moving to an ERP like Dynamics 365 Business Central, Dynamics 365 Finance & Operations, or NetSuite, you can ensure continuation of improvements in the product, unlock additional features and capabilities as well as benefit from a cloud-based solution.

Stay on Dynamics GP

A number of GP customers are very loyal to the product and want to stay on Dynamics GP as long as possible. If that describes you, there are some things you can do to make sure you can stay on GP as long as possible. If you are on a version of Dynamics GP listed in the table earlier in this blog, it is recommended to upgrade your system to bring it up to date before support ends. Upgrading your Dynamics GP system ensures that you have access to any new features and functionalities, as well as the resolution of any system glitches. This ensures you are able to receive important year-end updates alongside additional product support from Microsoft.

If you want to stay on Dynamics GP but are interested in benefits of the cloud, Microsoft gives clients the ability to host Dynamics GP in the cloud on Azure so they can reap some of the benefits of a cloud-based solution. Dynamics GP hosted in the cloud offers a middle ground between a traditional on-premise deployment and a fully cloud-based solution, giving some of the security and accessibility of a cloud-based solution without sacrificing the flexibility of an on-premise deployment.

Need help deciding if you should stay on Dynamics GP or migrate to a new system?  Rand Group is an experienced Microsoft and Oracle NetSuite partner that has assisted companies for two decades with supporting the health of their systems and attaining their organizational goals. Whether you are ready to migrate to another system or want to stay on GP, we can help. Contact our team of experts today.