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Benefits of Migrating to Dynamics 365 in the Cloud from On-Premises

Discover what Microsoft users stand to gain in migrating their Dynamics on-premises solution to the cloud.

Benefits of Migrating to Dynamics 365 in the Cloud from On-Premises

The cloud hardly feels disruptive in an era dominated by AI and big data. After all, migrating to cloud-hosted ERP from on-premises has been an urgent matter for years—a critical first step in any digital transformation journey.

The pandemic has further solidified the cloud’s place in the IT stack. In the last two years, we’ve seen organizations scramble to meet the needs of new remote employees and customers looking for better digital products and experiences to cope with the same challenges.

We’re seeing more organizations move on-premises applications into the cloud due to incentives from legacy software companies like Microsoft to migrate to new, cloud-based versions of old business tools.

In this post, we’ll explain what Microsoft users stand to gain in migrating their Dynamics On-Premises solution to the cloud.

Why Migrate From On-Premises?

For starters, the cloud is essential for business growth—and survival. According to IDC’s The Impact of Digital Transformation During Times of Change report, digital transformation initiatives like integrating customer touchpoints, operationalizing data, and gaining a 360-degree view of the customer became top priorities due to the pandemic. All priorities in that report fall apart without the cloud.

An Algorithmia survey also found that 83% of respondents are increasing spending on AI significantly, with 76% reporting that AI/ML is a bigger priority than all other IT initiatives post-pandemic. The findings also point toward a sense of regret among participants. 43% said AI/ML initiatives matter far more than initially thought, while nearly a quarter said AI/ML should have been a priority much sooner.

Organizations need cloud services to leverage technologies like AI/ML, IoT, and advanced analytics that help them compete. It’s hard to move quickly and make sound business decisions when your data lives in different systems—and brands are starting to face the consequences of avoiding the cloud.

Key Advantages of a Microsoft Dynamics 365 On-Premises to Cloud Migration

The overall advantage of a Dynamics 365 on-premises to the cloud migration is about remaining competitive and building a more “agile” business. But—if you’re looking to get more specific, here’s a look at some of the most significant advantages of moving to the cloud:

1) Bring All Data Into One Central Location

Migrating to Dynamics in the cloud provides complete visibility into your business—no matter how many locations are in the mix or whether your teams are working remotely.

With reporting tools that feature Power BI, predictive analytics, and artificial intelligence, organizations get an agility boost—enabling faster, data-driven decision-making. You’ll have a high-level view of your entire company, your customers, and the competitive and economic forces influencing customer behavior, needs, and expectations.

You can also unlock new business models and improve forecasting efforts. Or optimize project management and inventory planning for cost savings. The list goes on.

When you’re working with on-premises solutions, teams may end up working with static reports loaded with old, incomplete, or inaccurate data. All of which undermine the entire business strategy.

It’s also worth noting that even when teams have great data in their on-premises systems, they often have trouble accessing and acting on insights fast enough to keep up with competitors.

This becomes more significant when workers are spread across multiple locations or working remotely.

2) Cost Savings

Implemented correctly, Dynamics 365 online stands to slash operating costs associated with labor, equipment, warehouse space, admin, deployment, and so on. Instead, it’s on Microsoft to handle updates, security, and routine maintenance.

According to a Forrester Total Economic Impact report, organizations that made the move to the cloud were able to:

  • Reduce the TCO by an average of 10.25%

  • Cut deployment costs by 30-50%, on average, compared to on-premises customers

  • Save ~40% on administrative expenses like server backups, storage use, restorations, and software updates

  • Additional savings on disaster recovery costs, hardware, and storage management

3) Better Security

Microsoft Dynamics 365 offers more robust security than on-premises ERP solutions. The cloud is much more secure than analog solutions and most on-premises options. Sure, you’ll still find plenty of “hard copy holdouts.” But things have changed since the early days of the cloud.

Part of the reason is that legacy giants like Microsoft, IBM, and Amazon got into the cloud game and built solutions for healthcare, financial services, and the public sector. Cloud solutions like Microsoft Dynamics make it easier to control where your data is stored, who has access, and what resources your business uses at any given moment.

Migration can reduce the risk of ransomware attacks and data breaches and provide greater data security. Users also benefit from more control over who has access to the system and how sensitive information is processed and stored. This is critical now more than ever since we’re seeing more high-profile hacks targeting private organizations.

We’ve reached a point where it’s become a significant risk for companies to manage cybersecurity independently–the costs of getting it wrong can be devastating. All it takes is one exposed endpoint or missed update, and hackers can get into your system and wreak havoc.

According to the NTT Global Threat Intelligence report, traditional (or legacy) approaches are inadequate against modern threats. Organizations must reimagine their cybersecurity strategies and become more proactive and adaptive rather than reacting to new regulatory requirements and threats. Unfortunately, this isn’t possible without the cloud.

4) Optimize IT Resources

Existing database administration resources can be reallocated to other areas within your organization–where they’ll be better positioned to focus on new priorities that drive business value.

According to Gartner, CIOs should reevaluate their current use cases to optimize tech investments better and focus on identifying new opportunities to invest in the innovative solutions that will carry them into the future.

Another report from McKinsey provides some suggestions—including identifying new business models unlocked by cloud technologies, looking for ways to improve the customer experience, and reinvesting cost savings into new revenue streams.

For businesses looking to reallocate existing IT resources, it’s important to look beyond available resources and identify opportunities where D365 can save you time—time better spent understanding customers and developing innovative solutions that align with their needs.

5) Anywhere Access

The most tangible benefit of migrating to the cloud is the ability to access data/business tools from any device or location/move seamlessly between laptops, tablets, smartphones, and desktops without losing critical data/hours of work.

The cloud is a must-have in the age of remote work, distributed teams, and global partnerships. It’s also important to recognize that even if your organization is strictly in-person, on-premises hosting won’t cut it.

If you have multiple locations–even multiple buildings on the same campus, external partners, or sales & field service reps that visit clients in person, cloud-based business tools are essential. They enable collaboration and ensure that every person on your team is working with the same information.

Final Thoughts

Some people are motivated by the possibility of a brighter, more profitable future; others act out of fear—it’s a mindset thing.

If the benefits outlined above don’t convince you that it’s time to finally embrace the cloud, the risk of inaction may change your mind. On-premises solutions open the door to security risks, create barriers to insights and collaboration, and waste time with manual, error-prone processes.

If you're ready to think about the next steps, get in touch with the Kwixand Solutions team and begin mapping your journey to Microsoft Dynamics 365. We're a Vancouver-based Microsoft Dynamics 365 Partner and we help companies across North America digitally transform, optimize operations, and achieve their business goals.

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