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#MSDynGP Microsoft Announcement April 2023

David Musgrave MVP GPUG All Star Legend Moderator Profile Picture David Musgrave MVP ... 13,926 Most Valuable Professional

David Meego - Click for blog homepage On the 4th April 2023, Microsoft made an announcement about the future of new Microsoft Dynamics GP sales. While the details of the announcement are primarily behind “partner only” links, I wanted to explain the main points and how the announcement has very little effect for existing Microsoft Dynamics GP customers.

For existing Microsoft Dynamics GP customers nothing has really changed. Microsoft has committed to continuing support and development of Dynamics GP to 2028 and beyond.

Modern Lifecyle and Product Roadmap

Microsoft Dynamics GP is covered under the Modern Lifecycle Policy and as such has no end date specified. The product road map publicized in July 2021 explained that the modern lifecycle version of Dynamics GP (version 18.2 onwards) would have continued development to 2028 and beyond. It is important to note that product roadmaps usually only plan ahead by five years or so and that the ongoing development of Dynamics GP could likely be extended beyond 2028.

Same Message

That said, the Dynamics GP community cannot ignore the clear message that is being sent by Microsoft. Microsoft Dynamics GP is slowly approaching the end of its life. But this is the same message I have been hearing since 2000 when I joined Microsoft. Now, 23 years later the message is a bit louder, but there is still no reason for existing Microsoft Dynamics GP customers to move to another solution any time soon, especially if the product works for you. I would recommend ensuring that your sites are up to date and running on the current version (or at least the previous version).

Plan for the Future

However, you should be thinking about the future of your businesses and assessing the various products in the market, from both Microsoft and its competitors, to see if any can improve your business processes and systems. As the process of changing an ERP system is time consuming, disruptive and very expensive this change should be only made with due care and consideration. It is worth waiting until there is a great solution for your business with a simple migration path.

The Cloud

On the topic of “Cloud Computing” (AKA running stuff on someone else’s internet connected server), going to the cloud is not appropriate for all customers. There are many customers who cannot (for legal or policy reasons) or will not (for “comfort” reasons) go to the cloud. There are also customers who do not have the necessary fast, reliable and wide internet bandwidth required to trust their business to the cloud. There is no reason to move away from Dynamics GP if you do want to use the cloud, as there are many ways to run GP in the cloud. For example: private servers on platforms like Azure, partner hosted servers, and full subscription based services like those offered by companies such as Njevity, Watserv, CyberlinkASP, etc.

The Key Points

A quick summary of the announcement for Microsoft Dynamics GP users:

  • As of April 2026 (3 years from now) there will be no new customer sales of Dynamics GP.
  • As a steppingstone to this, from April 2025 there will be no new sales of GP Perpetual licenses. Subscription sales can still happen for the additional year.
  • The price of subscription and perpetual licenses are going up as of October 2023.
  • The Enhancement plan rate is increasing from 17% to 18% and Advantage plan rate is increasing from 19% to 20%.
  • Existing customers can continue to purchase new licenses and modules beyond 2026.
  • There will still be tax and other product updates for Dynamics GP, including some awesome features already planned for v18.6 due to release October 2023.
  • The support life cycle remains the same – “2028 & beyond”.

Microsoft Dynamics GP has a loyal community and Microsoft is fully committed to supporting existing customers and partners. For existing customers there are no changes. Microsoft will continue to provide regulatory (tax) updates, security updates, and hotfixes to ensure the current version of Dynamics GP remains up to date. This includes usability and reliability updates needed to address top customer issues that are critical in ensuring businesses run successfully on Dynamics GP.

More Detail

With most Microsoft Dynamics product investment driving new capabilities in Dynamics 365 products, and a desire to ensure customers receive the best long-term benefit from their investment, Microsoft will be modifying availability of Dynamics GP for new customer sales.
Scope:

  • Dynamics GP Perpetual
  • Dynamics GP Subscription

Effective April 1, 2025, purchases by new customers of Dynamics GP will be limited to subscription licensing, with no further sales of Dynamics GP Perpetual licenses to new customers after this date.

Effective April 1, 2026, sale of Dynamics GP Subscription will be limited to existing customers, with no further sales of Dynamics GP Perpetual or Dynamics GP Subscription licenses to new customers after this date. Subsequently, new customers seeking an on-premises product through the Dynamics Price List should consider Dynamics 365 Business Central on-premises (subscription) or Dynamics 365 for Operations on-premises, Enterprise Edition.

This announcement does not impact: the ability of Dynamics GP Perpetual customers 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 customers licensed prior to April 1, 2026, with an active subscription, to add functionality or users to their subscription license.

This change in new customer availability does not impact Microsoft’s commitment to provide regular regulatory (tax) updates, security updates, and hotfixes to ensure the current version of Dynamics GP remains up to date, including any usability and reliability updates needed to address top customer issues that are critical in ensuring businesses run successfully on Dynamics GP. However, as previously announced, Microsoft’s major investments and innovations will continue to be directed towards Dynamics 365 products.

Effective October 1, 2023, annual EP and AP rates will increase by 1 point for renewals and new sales. By way of example, the rate for a 1-year Enhancement Plan (EP) would go from 17% to 18% of Protected List Price (PLP), the rate for a 1-year Advantage Plan would go from 19% to 20% of PLP, and the rate for a 3-year Advantage Plan (AP) rate would go from 57% to 60% of PLP. 

A Request

A request to the customers: Please continue to pay enhancement for Microsoft Dynamics GP as this will ensure that Microsoft sees income coming in from Microsoft Dynamics GP and this will subsidize the continued support and development of the product. Hand in hand with paying for the enhancement, use it and stay up to date with the latest releases of Microsoft Dynamics GP.

More Information

Below are the Partner Links provided by Microsoft:

Here are other articles related to this announcement:

Here are the other articles in this series:

Thanks to the entire Microsoft Dynamics GP Community for your support. Winthrop Development Consultants is fully committed to Microsoft Dynamics GP and is continuing to develop new functionality for its product range.

Feel free to share this article and add your comments below.

David

This article was originally posted on http://www.winthropdc.com/blog.


This was originally posted here.

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