The Hidden Cost of Staying on Dynamics GP: Why Inaction Is Riskier Than You Think
- Kwixand Team
- 11 minutes ago
- 11 min read
Still on Dynamics GP? Learn the hidden financial, operational, and security costs of delaying your move to Dynamics 365 Business Central.
For many small and mid-sized businesses, Microsoft Dynamics GP still does the job. Invoices are processed, month-end still closes, and reports still run, even if they take some effort. From the outside, staying on GP can feel like the conservative financial decision, especially for CFOs and finance leaders trying to avoid unnecessary disruption. However, this might not make financial sense in the long run.
As Dynamics GP moves further into its final lifecycle stage, the cost of doing nothing is becoming harder to ignore. Microsoft has confirmed that product enhancements, regulatory updates, and technical support for Dynamics GP will end on December 31, 2029, with security updates available only until April 30, 2031. Older GP 2018 and GP 2018 R2 deployments also remain governed by Microsoft’s Fixed Lifecycle Policy, with extended support ending January 11, 2028.
Those dates matter, but this article is not another Dynamics GP end-of-life timeline recap. Instead, it looks at the question many finance leaders are really asking: What is staying on GP already costing the business?
For SMBs across Canada and the United States, the answer is often more than expected. The cost is not limited to license renewals or support fees. It appears in IT labour, infrastructure upkeep, manual reporting, delayed decisions, fragile integrations, security exposure, custom workarounds, and missed opportunities to modernize finance and operations. If you're still hestiating about a GP to Business Central migration, this article is for you.
We'll Cover:
Key Considerations to Keep in Mind If You're Still on Dynamics GP
Inaction Is Not Neutral, It's Risky
It is easy to think of delaying a Dynamics GP migration as a low-risk decision. After all, if the system is stable today, why create cost and disruption by replacing it? The problem is that ERP systems do not stand still. Business requirements change, reporting demands grow, cybersecurity expectations rise, and employees expect systems that connect with the tools they use every day. Microsoft has also made it clear that its innovation focus is now on cloud solutions and technologies, with Dynamics 365 Business Central positioned as its flagship SMB ERP product for the cloud and AI era.
This is no longer a case of Dynamics GP vs. Business Central, rather it's become a comparison of staying on a legacy platform with declining vendor investment versus a modern cloud ERP solution that continues to innovate.
Microsoft has also confirmed key GP sales milestones that show the product is being wound down for new customers. April 1, 2025 marked no new customers for GP perpetual licenses, and April 1, 2026 marked no new customers for GP subscription licenses. Microsoft’s licensing communication also states that after April 1, 2026, Dynamics GP sales are limited to existing customers, while Microsoft is focusing most of its resources on other products so new customers adopt systems that benefit from future innovations.
For CFOs, this changes the risk profile. Staying on GP is no longer simply maintaining the status quo. It is continuing to invest time, money, and process energy into a platform with a shrinking future.
The Visible Costs Are Only Part of the Story
Most companies can identify the obvious costs of staying on Dynamics GP. These may include annual maintenance, hosting, server costs, third-party add-ons, managed service agreements, and consulting support.
But the bigger issue is that many GP costs are hidden inside daily work. Finance teams may spend hours exporting data to Excel, reconciling reports, waiting for IT to build or modify integrations, or manually combining information from multiple systems. Operations teams may depend on spreadsheets because GP does not easily support the workflow they need. Executives may wait days for reporting that should be available in real time.
These costs associated with legacy ERP systems like GP are difficult to see because they rarely appear as a single budget line. Yet they compound over time. Here are some examples of that:
A few hours of manual reporting each week becomes hundreds of hours per year.
A one-off customization becomes a recurring maintenance burden.
A workaround that once seemed practical becomes the process everyone is afraid to touch.
If this sounds familiar, it might be time to reassess. CFOs should evaluate Dynamics GP not only as a software cost, but as a business productivity cost.
5 Main Hidden Costs of Staying on Dynamics GP
1️⃣ Infrastructure and IT Administration Keep Adding Up
Dynamics GP was primarily designed as an on-premises solution. GP can be hosted in the cloud and accessed through a web server, but it was not really designed for the cloud. That distinction matters.
When an ERP system is hosted, the infrastructure may move to a data center or cloud provider, but the application architecture remains largely the same. You may reduce some hardware responsibilities, but you still carry the burden of GP application maintenance, patches, upgrades, integrations, and customizations. Hosting GP on Azure does not remove GP’s legacy limitations or application-level maintenance responsibilities and this is where costs can quietly escalate.
On-premises and hosted GP environments often require attention from internal IT staff, external consultants, or managed service providers. Servers, SQL databases, backups, disaster recovery plans, access controls, and security reviews all require ongoing management. Even when infrastructure is outsourced, someone still needs to own the risk.
By contrast, Business Central online is delivered as a cloud ERP model, hosted and managed by Microsoft, with users accessing the platform through the internet. Business Central online removes the need for servers, dedicated infrastructure management, and many upgrade and maintenance costs that come with on-premises systems. For a CFO, that difference affects more than IT. It changes how predictable, scalable, and transparent ERP spending can be.
2️⃣ Manual Processes Are a Finance Productivity Tax
One of the most expensive costs of staying on GP is the time your finance and operations teams lose to manual work.
For many organizations, Dynamics GP continues to function as the system of record, but critical business processes often happen outside the ERP. Finance teams export data into spreadsheets, manually consolidate reports, reconcile information across multiple systems, and spend valuable time performing repetitive tasks that add little strategic value. Operations teams frequently rely on disconnected tools and workarounds to compensate for reporting or workflow limitations.
Forrester’s 2026 Total Economic Impact study of Dynamics 365 Business Central, commissioned by Microsoft, organizations that modernized their ERP environment achieved substantial productivity gains by automating manual processes and consolidating disconnected systems. The study found that the composite organization reduced monthly close times by up to 30% by Year 3, while accounts payable, accounts receivable, and billing teams improved productivity by up to 50% through streamlined workflows and automation.
Forrester also reported that organizations were able to reduce reliance on manual reporting processes and improve visibility across finance and operations by bringing previously disconnected information into a single platform. Instead of spending time gathering and validating data, employees were able to focus on higher-value activities such as forecasting, cash flow analysis, performance management, and strategic planning.
For CFOs, this represents one of the most overlooked costs of staying on GP. The issue isn't simply that employees spend time on manual work. It's that the business continues paying highly skilled professionals to perform tasks that modern ERP technology can increasingly automate. Over time, those lost hours accumulate into a significant productivity tax, one that grows larger as competitors adopt more automated, AI-enabled finance processes.
3️⃣ Customizations and Integrations Become Technical Debt
Many Dynamics GP environments have been customized over years or even decades. Some of those customizations may still be valuable while others may exist only because the business had no better option at the time. That creates a challenge: every customization needs to be maintained, tested, documented, and considered during upgrades or integration changes. Over time, these customizations can become technical debt.
Moving from GP to Business Central is not like a version upgrade; it is a re-implementation because GP and Business Central are different products. GP often relies heavily on third-party applications, and that consolidating those data sources can become one of the biggest migration challenges.
This is exactly why waiting can make the future project harder. Every year of additional customization, workaround development, or point-solution dependency can increase the discovery, cleanup, and migration effort later.
While Business Central does not eliminate the need for thoughtful configuration or extensions, it does change the model. Business Central includes broader out-of-the-box functionality, integrates with Power BI, Microsoft 365, and Power Platform, and supports AppSource extensions for additional needs. That gives SMBs a more modern foundation for extending ERP without continuing to build around an aging GP architecture.
4️⃣ Security and Compliance Risk Increase Over Time
Security is another area where the cost of staying on GP can be underestimated. Microsoft has confirmed that Dynamics GP security updates and patches will be available until April 30, 2031. After that date, businesses running GP will need to manage the risk of operating without Microsoft security patches.
For CFOs and controllers, this is more than an IT concern. ERP systems contain sensitive financial, vendor, customer, payroll, and operational data. Any weakness in the environment can have financial, legal, compliance, and reputational consequences.
One thing to keep in mind here is that once Microsoft stops providing security patches, GP environments can be exposed to vulnerabilities, and older systems are often more vulnerable to evolving security threats. Microsoft’s GP lifecycle guidance also encourages customers to transition to Business Central, citing advanced AI tools and robust security features in the new era of cloud and AI computing.
For Canadian and US businesses with regulatory, audit, insurance, or customer data obligations, this risk should be part of the ERP cost model. The question is not only whether GP can keep running. The question is whether the business can justify the risk profile as the platform ages.
5️⃣ Hosting GP in the Cloud Is Not the Same as Cloud ERP
Some GP customers consider hosting Dynamics GP in Azure or another cloud environment as a middle path. In some cases, that may be a reasonable interim step. It can reduce dependence on physical servers and may improve accessibility or infrastructure resilience.
But as we mentioned earlier, hosting GP is not the same as moving to a cloud-native ERP solution. Business Central was built for a SaaS environment, with cloud access, automatic updates, Microsoft ecosystem integration, and modern extensibility. GP hosting simply moves the existing GP environment to cloud infrastructure. While hosted GP can provide benefits such as reduced hardware costs and scalability, GP’s legacy architecture cannot fully work with modern cloud efficiencies and that organizations remain responsible for application-level maintenance such as software updates, patches, integrations, and customizations.
This distinction is important for CFOs evaluating cost. A hosted GP environment may reduce some infrastructure pain, but it does not provide the full benefits of cloud ERP. You may still pay for hosting, GP licensing, third-party tools, support, integration maintenance, and specialized GP expertise. If the business goal is simply to buy time, hosting may be worth evaluating. If the goal is to reduce long-term ERP risk and modernize operations, it is still a less-
than-ideal situation.
What Business Central Changes Financially
Dynamics 365 Business Central changes the economics of ERP in a few key ways.
First, it shifts ERP from a server-based operating model to a cloud subscription model. This helps SMBs avoid infrastructure investment, upgrade costs, and maintenance costs, while providing predictable subscription-based monthly fees.
Second, it consolidates more functionality into one system. Forrester’s 2026 TEI study found that Business Central helped the composite organization avoid costs from legacy ERP solutions and support, including infrastructure, maintenance personnel costs, upgrade fees, and multiple vendors across its ERP stack.
Third, it creates a stronger platform for automation and analytics. Business Central integrates with Microsoft 365, Power BI, Power Apps, and Power Automate, helping companies connect data, automate workflows, and improve reporting visibility. Microsoft also positions Business Central as an AI-ready SMB ERP platform with built-in Copilot capabilities and a foundation for cloud and AI computing.
Most importantly, the economics have been validated through independent research. The 2026 Forrester TEI study reported 209% ROI, $464,000 NPV, and payback in less than six months for its composite organization, while also identifying a 14% total cost of ownership reduction from modernizing ERP and retiring legacy maintenance and hardware costs. These numbers will not apply equally to every company, but they give CFOs a credible framework for evaluating the financial case.
Again, every business should model its own numbers, but the direction is clear: cloud ERP value is often realized through lower maintenance burden, improved productivity, better reporting, and reduced reliance on disconnected tools.
How to Estimate Your Hidden GP Costs
A practical GP cost assessment should go beyond license and support invoices. CFOs should work with IT, operations, and finance leaders to quantify the following categories:
Infrastructure and hosting costs: Include servers, SQL infrastructure, backups, disaster recovery, monitoring, hosting, and security tools. Even if these costs are embedded in a managed services contract, they are still part of GP’s operating cost.
IT administration and support: Estimate internal and external time spent on GP maintenance, user support, patches, report changes, upgrades, integrations, and troubleshooting.
Third-party products and integrations: Identify tools used for reporting, AP automation, payroll, EDI, CRM, inventory, analytics, or workflow because GP does not handle the process natively or efficiently.
Manual finance and operations work: Estimate hours spent exporting data, reconciling spreadsheets, preparing reports, rekeying information, and managing exceptions.
Risk exposure: Consider unsupported versions, security patch timelines, audit readiness, business continuity, and the cost of downtime or delayed reporting.
Opportunity cost: Evaluate what finance and operations teams could accomplish
if less time were spent maintaining workarounds and more time were spent on forecasting, margin analysis, cash flow visibility, automation, and strategic planning.
In Summary, The Cost of Waiting May Be Higher Than the Cost of Moving
ERP migration requires planning, budget, internal commitment, and change management. There is no benefit in pretending otherwise. Moving from GP to Business Central requires rethinking processes, evaluating customizations, and preparing data carefully. However, delaying does not eliminate that work, rather it compresses it.
As deadlines approach, demand for qualified GP to Business Central migration expertise may increase. Internal teams may have less flexibility to choose timing, customizations may become harder to unwind, and security and support concerns may become more urgent. The business may end up migrating under pressure instead of on a well-planned schedule.
The best modernization projects are not panic-driven. They are scoped, financially modeled, and tied to measurable business outcomes. That is why now is the right time to assess your GP environment, quantify hidden costs, and determine the right migration path.
Ready to Take the Next Steps? Kwixand Solutions Can Help
Dynamics GP has served many SMBs well for years but as support timelines advance, infrastructure ages, and cloud ERP capabilities expand, staying on GP becomes less of a safe harbor and more of a compounding liability.
Kwixand Solutions is a Dynamics 365 Partner, and can help businesses across Canada and the United States evaluate Dynamics GP, understand the financial impact of staying versus migrating, and build a practical roadmap to Dynamics 365 Business Central. Book a free consultation to learn what a GP to Business Central migration would look like for your organization.
FAQ
Is Dynamics GP really being discontinued?
Yes. Microsoft has announced that Dynamics GP product enhancements, regulatory updates, and technical support will end on December 31, 2029, and security updates will end on April 30, 2031
Wasn’t the Dynamics GP support end date September 30, 2029?
Yes, Microsoft originally announced September 30, 2029, but later updated the product support and updates end date to December 31, 2029 so customers could meet full-year payroll and tax obligations. The security patch end date remains April 30, 2031.
Can we keep using Dynamics GP after support ends?
The software will not automatically stop working, but the risk changes. After product support ends, you lose Microsoft product enhancements, regulatory updates, and technical support. After security updates end, your GP environment no longer receives Microsoft security patches.
Is hosting Dynamics GP in Azure similar to moving to the cloud like Business Central?
No. Hosting GP in Azure can reduce some infrastructure burden, but GP remains a legacy application that still requires application maintenance, patches, integrations, and customization support. Business Central is a cloud-native ERP designed for SaaS delivery, modern integrations, automatic updates, and Microsoft cloud innovation.
How does Business Central improve ERP costs?
Business Central can reduce costs by replacing infrastructure, lowering maintenance burden, consolidating tools, improving productivity, and reducing manual work. Forrester’s 2026 TEI study found a 209% ROI, approximately $464K NPV, and 6-month payback for a composite SMB organization using Business Central.
What should we do first if we are considering a GP-to-Business Central migration?
Start with a structured assessment. Review your current GP environment, integrations, customizations, reporting needs, manual processes, data quality, support costs, and business goals. This helps determine whether Business Central is the right fit, what migration would involve, and how to build a realistic budget and timeline.
