Out in the wild, I am still seeing companies who are using Dynamics AX.
It doesn't matter which version at this point because they are all obsolete.
Microsoft announced that end-of-life for AX 2012 R3, which was the last version of AX, would be January 10, 2023. Since we are now years away from this, I want to send out the signal to implore you to consider upgrading your Dynamics AX environment to Dynamics 365 Finance and Operations.
You may be thinking that you already made a huge investment in your current ERP solution or that it is now too customized for you to reasonably consider an upgrade. You may have budgetary concerns or previously made an attempt to go to Dynamics 365 that failed.
That's ok! I am here to give you all the reasons why you could, and should, migrate to Dynamics 365 Finance and Operations from your (now) legacy Dynamics AX ERP system.
Security Risk
Running your system on an older, on-prem version of the system that has not been updated in years can be a massive security risk.
Microsoft stopped providing security updates to Dynamics AX and if there are any vulnerabilities in your on-prem hardware, you are opening your company up to a lot of risk.
Microsoft actively invests in their current platforms by providing ongoing security and platform updates to Dynamics 365.
Cloud-based
When everything started moving to the cloud, there was a lot of trepidation and fear. As a society, we have now embraced the cloud and all the operational efficiencies that come with it.
Dynamics 365 Finance and Operations runs on Microsoft Azure and boasts impressive uptime along with disaster recovery capabilities for their users.
Likewise, being cloud-based means that:
- the system is available to users from wherever they need to access it
- there is reduced infrastructure management on your IT team
- it's easier to scale as your company grows
Support and Operational Risk
It is getting harder than ever to find partners and ISVs who will support Dynamics AX on-prem installs.
The solution is getting increasingly more difficult to maintain and the cost to find people who are content to support a legacy system will continue to rise. IT professionals want to work with the newest, latest, and greatest – not the antique version of the system.
Additionally, there may be one or two key super users or administrators within your organization who have deep knowledge of your system, the infrastructure, and any legacy integrations that may be in place. It's important to leverage that knowledge to help your organization take on a project to modernize your ERP.
The true cost of staying put: outdated ERP systems create compounding risk across every part of your business.
Highly Customized
Another area of concern is that your company may have invested a lot in customizations to get Dynamics AX to work for your business. I get that. It can be difficult to let go of that investment.
However, there are many new features in Dynamics 365 Finance and Operations that have been designed to address business requirements that previously required customization in Dynamics AX.
Likewise, Microsoft is investing heavily in AI solutions called Agents within the ERP that can assist with tasks and shorten the amount of time to complete tedious work. There are now several out-of-the-box AI Agents that assist with tasks like account reconciliation and communication with suppliers.
Additionally, Microsoft has invested heavily in the Dynamics 365 MCP Server, which provides a standardized and secure way for AI agents to access ERP data and business processes without requiring custom integrations. This allows organizations to:
- build intelligent agents faster
- reduce manual effort
- improve productivity
That said, sometimes the customizations that you built are still viable and can be migrated to Dynamics 365 Finance and Operations using tools provided by Microsoft. Other times customizations can be replaced by what is now native functionality in the system, removing risk associated with a customization that needs to be maintained.
Either way, there are plenty of options to move forward.
Teams working alongside AI agents on trusted, connected operational data.
Investment
It can be difficult to invest in a new ERP when the team just finished the Dynamics AX project within the last ten years.
You thought you were buying a forever solution, but that solution is no longer being supported.
You spent a lot of time, money, and resources learning it, customizing it, and maintaining it.
Dynamics 365 Finance and Operations leverages the same capabilities that you had in Dynamics AX with added enhancements that bring value to many teams.
At Hummingbird, we work with our customers to find every opportunity to leverage funds that are available to legacy users to move them to Dynamics 365 from a legacy investment. We understand that a lot of time, effort, and resources went into that project and we want to be sensitive to the undertaking that your team had to take to get your current system up and running.
One thing that Hummingbird does differently is that we complete a thorough discovery of your business and then leverage AI, through our proprietary tool Nectar Works, to help document your processes in an expedited format. This helps to get your team engaged quickly so that you can leverage the momentum of the new project and begin to see quick results.
We understand that this is an investment in your company's future and want to work to provide the best overall solution for your business.
Contact us today to complete an assessment of your Dynamics AX environment and start the conversation about what moving to Dynamics 365 Finance and Operations looks like.