Marco Schoch Finance
Zurich,
Comparisons
Business Central vs. Dynamics GP
Microsoft Dynamics GP, originally known as Great Plains, has been an established ERP system for small and mid-sized businesses since the 1980s. After Microsoft acquired it in 2000, the software became part of the Microsoft family. In September 2024, Microsoft announced that it would end support and product updates for Dynamics GP on September 30, 2029, while continuing to provide security updates through April 30, 2031.
In light of this announcement, many companies are asking whether Dynamics 365 Business Central is a suitable alternative. This article explores the differences and similarities between the two solutions to help you make an informed decision.
Highlights
- Dynamics GP will receive full support only through 2029
- GP is available only on premises, while Business Central offers full deployment flexibility
- Business Central is an alternative for GP users
- Business Central’s cloud model reduces IT costs and effort over the long term
- GP suits simple processes, while Business Central suits scalable requirements
Marco Schoch Finance
Zurich,
Time to switch
An overview of Dynamics GP
GP is an on-premises enterprise resource planning system. This gives companies full control over their data. However, companies must provide their own IT infrastructure and handle regular maintenance, which requires both financial and IT resources.
The software offers features for financial management, human resources, sales, service, manufacturing, project management, and supply chain management. It is primarily aimed at small and mid-sized businesses (SMBs) looking for a comprehensive, scalable solution for their business processes.
The software is known for its stability and adaptability, supported by a wide range of third-party add-ons and integrations. These extensions let companies tailor Dynamics GP’s functionality to their specific needs.
Modern and flexible
An overview of Microsoft Dynamics 365 Business Central
Dynamics 365 Business Central is a cloud-based ERP solution. Unlike GP, the software is also available on premises or as a hybrid solution. The successor to Dynamics NAV is also designed for small and mid-sized businesses. It brings together features for financial management, sales and CRM, project management, and supply chain management in a single platform.
As part of the Dynamics 365 product family, Business Central offers seamless integration with other Microsoft products such as Power BI and other products in the Dynamics 365 suite, including Dynamics 365 Sales.
By deploying the business management solution in the cloud, users benefit from automatic updates, scalability, and lower IT costs. The platform also offers a modern user interface and advanced features such as artificial intelligence.
Recommended reading: “Business Central vs. Navision: Why upgrading pays off for your company”
The key differences
Comparing the two ERP systems: Dynamics GP vs. Dynamics 365 Business Central
First, a major difference between the two systems is deployment. Dynamics GP is available only on premises, while Business Central supports all three deployment models: cloud, on premises, and hybrid. At first glance, the solutions look very similar in every other area. A closer look, however, reveals several differences that we explore below.
ERP system features
| Feature | Microsoft Dynamics GP | Microsoft Dynamics 365 Business Central |
|---|---|---|
| Financial management |
Microsoft Dynamics GPStrong features for accounting, financial reporting, tax management, and budgeting.
|
Microsoft Dynamics 365 Business CentralComparable to GP, but with additional automation, real-time data analysis, and AI-powered decision-making.
|
| Human resources |
Microsoft Dynamics GP:
Basic HR management: payroll, employee management, and performance tracking.
|
Microsoft Dynamics 365 Business Central:
More limited than GP and often supplemented with third-party apps.
|
| Manufacturing |
Microsoft Dynamics GP:
Supports simple manufacturing processes (bills of materials, production planning).
|
Microsoft Dynamics 365 Business Central:
Extensions support more complex manufacturing scenarios
|
| Project management |
Microsoft Dynamics GP:
Basic billing, time, and expense management.
|
Microsoft Dynamics 365 Business Central:
Flexible cloud-based tools for efficient management, transparency, and automation through native integration and real-time data
|
| Supply chain management |
Microsoft Dynamics GP:
Warehouse management, inventory management, procurement, and basic tracking.
|
Microsoft Dynamics 365 Business Central:
Warehouse management, inventory management, procurement, and basic tracking, as well as advanced features such as automatic replenishment planning and AI-powered forecasting.
|
| Sales and CRM |
Microsoft Dynamics GP:
Basic features: customer management and order processing.
|
Microsoft Dynamics 365 Business Central:
Integrated CRM features to improve customer retention.
|
| Production and logistics |
Microsoft Dynamics GP:
Manufacturing and warehouse management features, designed specifically for manufacturing companies.
|
Microsoft Dynamics 365 Business Central:
Supports production planning and flexible warehouse processes.
|
| Reporting/business intelligence |
Microsoft Dynamics GP:
Extensive reporting, but limited visual analysis.
|
Microsoft Dynamics 365 Business Central:
Real-time dashboards and Power BI integration for deeper insights.
|
| Deployment |
Microsoft Dynamics GP:
On premises only, requiring local servers and IT resources.
|
Microsoft Dynamics 365 Business Central:
Cloud-based, with on-premises deployment also available. Ideal for hybrid scenarios.
|
Extensions and integration
Dynamics GP supports some integrations and extensions, but it is not as flexible or modern as Business Central. Business Central is far ahead, especially in AppSource extensions, Power Platform integration, and compatibility with Microsoft products.
Microsoft Dynamics GP
- Strong third-party support with add-ons, but no direct integration with the AppSource platform.
- Customizations require custom programming (Dexterity) or third-party providers.
- Modern tools such as Microsoft Teams, Power BI, and Azure services are not as closely integrated.
Microsoft Dynamics 365 Business Central
- Modern extensions through the AppSource platform.
- Flexible extensibility with the Power Platform (Power Automate, Power Apps).
- Seamless integration with other Microsoft products.
Technical architecture
Business Central is built on a future-ready architecture, while Dynamics GP relies on outdated technology that is less adaptable. This is one of the main reasons support for the software ends in 2029. For comparison:
Microsoft Dynamics GP
- Older architecture that is harder to update and scale.
- Data access is primarily through SQL Server.
Microsoft Dynamics 365 Business Central
- Modern, modular architecture integrated with the Microsoft cloud (Azure).
- An API-first approach makes integrations and data access easier.
Costs and licensing
While Dynamics GP may cost less to purchase, Dynamics BC’s cloud model offers better cost control over the long term and fewer hidden costs.
Microsoft Dynamics GP
- A one-time license may seem less expensive in the long run, but can lead to high implementation and maintenance costs.
- Additional fees for extensions, updates, and hosting (if hosted).
Microsoft Dynamics 365 Business Central
- Subscription model with monthly fees per user, though it can also be paid annually.
- Costs include updates, support, and cloud hosting.
Learn more about the costs of Dynamics 365 Business Central.
Support, maintenance, and updates
Business Central is the clear winner for support and updates because it uses modern standards such as cloud deployment, minimizing IT effort.
Microsoft Dynamics GP
- Updates and maintenance require manual intervention and can be costly.
- Support ends in 2029, with security updates through 2031.
Microsoft Dynamics 365 Business Central
- Automatic updates in the cloud mean companies always use the latest version.
- Microsoft provides long-term support.
Security
Business Central offers significantly better security features through its cloud infrastructure and requires fewer internal security resources.
Microsoft Dynamics GP
- Security depends on the internal IT infrastructure.
- Greater risk from manual updates and potential delays in security patches.
Microsoft Dynamics 365 Business Central
- Microsoft Azure provides comprehensive enterprise-grade security, including encryption, multifactor authentication, and regular security updates.
- Automatic protection against cyberattacks.
Implementing Business Central and GP
Dynamics 365 BC is an out-of-the-box solution, meaning it is ready to use right away without extensive customization. This makes implementation simple, especially for cloud deployments. Implementing Dynamics GP takes more effort because the solution is deployed locally and individual customizations must be made manually.
Microsoft Dynamics GP
- Long implementation times due to customizations.
- Requires significant internal IT resources.
Microsoft Dynamics 365 Business Central
- Faster implementation through standardized processes.
- Support from Microsoft partners such as Nexova Dynamics makes the switch easier.
The future-ready option
Is Dynamics 365 Business Central an alternative to Dynamics GP?
The ERP system in the Dynamics 365 suite is a suitable alternative to Dynamics GP in many areas, especially for companies looking for a cloud-based, flexible, and modern solution. The ERP system makes it easy to integrate with other Microsoft products, offers cost-efficient maintenance, and grows with a company’s needs. It is especially beneficial for companies that already use Microsoft products and are looking for a future-ready, scalable ERP platform.
With support for Dynamics GP ending soon, however, the question is whether Business Central is the right choice for your company. It depends on your specific requirements:
- Companies with simple business processes: For companies with standardized processes and no need for complex customizations, Business Central is an ideal alternative. Its cloud-based structure offers flexibility and scalability without requiring extensive customization.
- Companies with complex or specialized requirements: Business Central does not provide all features out of the box for companies with heavily customized processes or specific industry requirements. In such cases, migration may require additional customizations or third-party apps, which can involve higher costs and more effort.
- Companies that still prefer on-premises deployment: One of Business Central’s key strengths is the cloud. However, companies that want to retain full control over their systems and data may consider the on-premises option, which offers limited features compared with the cloud version.
Recommended reading: “Microsoft Dynamics 365 Business Central: Cloud vs. on-premises”
Switch with expert support
Nexova Dynamics is your partner for Dynamics 365 Business Central
The upcoming discontinuation of Dynamics GP means companies need to start planning their ERP strategy early. Overall, Business Central is a very good option for companies looking to move to a modern, flexible ERP solution. Its suitability depends on individual needs, IT infrastructure, and the complexity of business processes.
As an experienced implementation partner, Nexova Dynamics supports you in planning and making the switch to Business Central. With our extensive expertise, we tailor the implementation to your individual requirements and make the transition as smooth as possible.
