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Benefits of AX to D365 F&O Migration for Your Business
Today, more and more companies are considering AX to D365 upgrade services. This is due to several factors.
- First, the official Microsoft support cycle for AX ended back in 2022. It means that users stopped receiving any official security updates. As a result, they have to invest in maintenance from third-party providers.
- Secondly, AX functionality is a concern. Although the platform is quite powerful, it is inferior to modern modules in its functions and may not meet the growing needs of the business.
- The last thing to note is the compatibility and integration capabilities. Unlike AX, Dynamics 365 modules are cloud-based and can be more easily combined with Microsoft tools.
Let’s take a look at what other benefits you get from the AX 2009 to D365 upgrade:
Cloud-based Infrastructure
- Scalability: D365FO is built on the Azure cloud. It makes it easy to scale without the need for physical infrastructure.
- Cost Savings: You save money since you don’t invest in on-premise hardware maintenance and server management. In addition, the new platform is fully supported by Microsoft, which reduces costs associated with hiring third-party services for platform upgrades and maintenance.
- Accessibility: With the cloud-based infrastructure, you get a full-fledged collaborative environment where all employees access files and work on tasks together in real time.
Improved User Interface
- Modern Experience: The Finance and Operations module has an updated user interface with all tools at your fingertips. It is more user-friendly and provides easy navigation compared to AX.
- Customizable Workspaces: The new software allows you to customize your workstations with role-based access and personalized dashboards. It helps to increase performance and improve many manual operations.
Regular Updates and Support
- Continuous Updates: Dynamics F&O provides regular security patches and non-security updates from Microsoft. This way, your system is always up-to-date and fully protected.
- Extended Support: Microsoft provides longer support cycles for D365 FO. So, you get new features and may request customizations.
Integration with Other Microsoft Services
- Smooth Integration: Dynamics 365 F&O connects with other Microsoft products like Office 365, Power Platform, and Azure services. As a result, you get a common ecosystem for operations, productivity, and collaboration.
Advanced Analytics and AI Capabilities
- Embedded Analytics: You get real-time analytics and comprehensive reporting due to smooth integration with Power BI.
- AI and Machine Learning: The platform supports artificial intelligence and machine learning features. Thus, you may automate many tasks, set up AI-powered tips, and predict customer needs.
Compliance and Security
- Robust Security: Built-in Azure Active Directory and role-based security controls ensure data security and regulatory compliance.
- Global Compliance: Dynamics ensures full compliance with global standards such as GDPR, financial reporting standards, and tax regulations.
Mobile Accessibility
- Mobile Applications: Your employees may access business data and perform tasks from mobile devices with a mobile-friendly and responsive interface.
Reduced Customization Needs
- More Out-of-the-box Functionality: You get more built-in functionality. It reduces the need for heavy customizations compared to older versions of Dynamics AX.
Global Reach
Multi-language and Multi-currency Support: The new software supports global business operations. Thus, you may cooperate with clients from different countries.
Dynamics AX to Finance and Operations Migration Steps
AX to D365 migration takes place in several stages. It includes assessing your current setup, creating a migration strategy, extracting data, and implementing it into the new environment. Here’s how it works step by step.
Initial Assessment and Planning
- Business Needs Analysis: As a first step, analyze your immediate needs and identify the problems that may be solved with FO implementation.
- Current System Audit: Next, begin a thorough audit of your current Dynamics AX 2012 databases to assess the scope of your data and prepare a migration strategy.
- Create a Migration Roadmap: Finally, develop a detailed migration plan based on the data collected and your analysis. It should include timelines, milestones, and risk mitigation strategies that allow you to complete the entire process quickly and with minimal disruption.
Deployment Option
- Choose a Deployment Method: Decide whether to migrate to the cloud or choose an on-premises deployment. You may also consider a hybrid model and combine both options. Base your decision on your analysis and your organization’s needs. We recommend choosing cloud-based software to take full advantage of all the possibilities.
Licensing and Subscription
- Licensing Requirements: Analyze the licensing requirements for Dynamics 365 Finance and Operation. Microsoft uses a subscription-based model, so consider the cost implications and the relevant licensing model.
Prepare Infrastructure
- Set up Environment: Set up the environments in Microsoft Azure, including development, test, and production environments using Microsoft Lifecycle Services (LCS).
- Evaluate Integrations: Identify the availability of third-party system integrations. Then, decide if you need to connect these systems, APIs, connectors, or middleware to your new software.
Data Migration
- Data Cleansing: Before you begin your Dynamics AX 2009 upgrade and data migration, prepare your existing content to eliminate inconsistencies, duplicates, and outdated information. It includes cleaning and standardizing the information.
- Data Mapping: Map data from Dynamics AX to the appropriate entities in the new module to migrate Dynamics AX to Dynamics 365. You should cover customer data, transactions, supply chain information, and other materials.
- Data Migration Toolkits: Deal with the Microsoft Data Migration Framework (DMF) and other tools from Life Cycle Services (LCS) to transfer your material.
- Test Your Migration: Try the setup in test mode to ensure the integrity and security of the process.
Customization and Optimization
- Evaluate Customizations: Evaluate the existing custom features in AX and determine if they are still needed or if the new platform has out-of-the-box functionality that may replace them. If you find duplicate features, change the architecture or remove unnecessary tools.
- Extensions instead of Customizations: Apply for extensions instead of creating custom code after the Dynamics AX 2009 to D365 upgrade. This allows you to reduce your investment and introduce innovative tools much easier.
Testing and Validation
- Functional Testing: Check how well the newly created features meet your company’s needs, including customers and employees.
- User Acceptance Testing (UAT): Involve your end users to ensure the system works well for them. Collect feedback and make necessary adjustments.
Training
- End-user Training: Provide your end-users with educational materials on the platform. They may include tutorials, workshops, and role-based learning paths. Cooperate with Dynamics 365 F&O developer to get a reliable assistant and trainer to cope with the platform.
Go-Live
- Switch to Finance and Operations: After a successful Microsoft Dynamics AX upgrade, switch your operations to Finance and Operations. Ensure that all users have access and that all features work bug-free.
- Post-Go-Live Support: Provide thorough support for your software to make it fully secure and long-lasting.
- If you decide to stay with your AX system, hire Microsoft AX developer. A specialist will help you clean up your platform and ensure the information is secure.
Сost of Migration from Dynamics AX to Finance and Operations
Of course, AX 2012 to D365 upgrade services require expenses. Investments are necessary to hire a trained team, ensure their smooth operation, and get high-quality customization. Let's look at the costs associated with an AX 2012 upgrade to Dynamics 365. Let's calculate how much the upgrade may cost you.
Licensing Costs
Unlike the AX operating system, the new module operates on a subscription-based model. It means you have to choose the right license to cover your needs.
- Base Price: typically ranges from $180 to $210 per user per month for full access.
- Team Members: around $8 per user per month.
- Additional Modules: the licensing cost will increase if you plan to add new modules.
Data Migration Costs
The data migration process consists of several stages, including system evaluation, data preparation, and the transfer itself. You may hire a Dynamics 365 migration consultant for one or all of these processes. It allows you to allocate investments and ensure each stage is completed professionally.
As for the cost, it depends on many factors such as the volume of information, project complexity, deadlines, and industry specifics. In general, the situation looks like this.
- Assessment and Planning – $5,000 to $50,000;
- Migration Services – $50,000 to $500,000;
- Data Migration Tools and Execution – $20,000 to $150,000;
- Customization Redesign – $150 to $250 per hour.
Training Costs
The next cost is related to user training. It refers to a pre-migration training course to familiarize them with the new functionality and support them during their first interactions with the system. This approach helps to avoid manual errors and make the transition as smooth as possible for everyone. Depending on the size of your organization, training costs could range from $10,000 to $50,000.
Testing and Validation Costs
Functional testing, performance testing, and user acceptance testing (UAT) typically involve external consultants. It can add $10,000 to $50,000, depending on the complexity.
Third-party Integration Costs
If you need additional systems during the upgrade Microsoft Dynamics AX to Dynamics 365, consider the costs to implement and maintain the integrations. It often requires hiring a Dynamics 365 integration specialist to establish connections and optimize performance. Depending on the number and complexity of the integrations, this can cost between $10,000 to $100,000 or more.
Ongoing Operational Costs
Even after a high-quality setup, your software will still need support. This step is necessary to ensure the system’s longevity and data security. Managed support services may cost $2,000 to $10,000 per month.
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