Microsoft announces the end of sales of new Dynamics GP licenses

Microsoft recently announced that it will be ending the sale of Dynamics GP to new clients over the next three years. This means that new clients looking for an on-premises ERP solution will need to consider other options. In this blog, we will discuss this announcement, its implications for GP clients, and what it means for the future of the product.

In April, Microsoft announced the sale of Dynamics GP licenses to new clients will be phased out according to the schedule below:

• April 1, 2025 – End of new sales for new clients to purchase Microsoft Dynamics GP perpetual licenses. New subscription sales can still occur for one more year.
• April 1, 2026 – End of new sales for new clients to purchase Dynamics GP for both perpetual and subscription licenses

Microsoft will stop selling new perpetual licenses for new clients of Dynamics GP in 2025. The sale of new Dynamics GP subscription licenses for new clients will end in October 2026. Existing Dynamics GP clients will still be able to purchase additional users but there will be no net new instances of Dynamics GP. Microsoft has stated that it will continue to provide support and updates for existing Dynamics GP clients, including necessary regulatory, security, and usability updates beyond the end of new sales. However, the announcement effectively sets an end date for new client sales of GP.

Microsoft has stated that this announcement does not impact the ability of Dynamics GP Perpetual clients licensed prior to April 1, 2025, with an active enhancement plan, to add functionality or users to their perpetual license, nor the ability of Dynamics GP Subscription clients licensed prior to April 1, 2026, with an active subscription, to add functionality or users to their subscription license.

Microsoft has stated that they will continue to provide support and updates for existing Dynamics GP users; however, exactly how long is unknown. Older versions of GP on the Fixed Lifecycle Policy have a definite end date for support but there is not, as of yet, a fixed end date for the versions of GP on the Modern Lifecycle Policy.

While Microsoft has stated that it will continue to provide support and updates for existing customers, it is clear that the company is shifting its focus towards its cloud-based Dynamics 365 family of business applications, including Business Central and Finance & Operations. Most of the updates to Dynamics GP will be related to hotfixes and tax and regulatory updates, and not new features and functions.

Microsoft’s announcement about the end of sales of Dynamics GP to new clients over the next three years is a significant development for the future of the system. With this announcement and Microsoft shifting its focus towards Dynamics 365, GP users have a couple of options on how to move forward with their system. Some users may choose to stay on Dynamics GP for as long as possible, while many others are choosing to migrate to a new ERP system that has a clear roadmap for future development and innovation with regular updates and improvements.

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.