Hosted Dynamics vs. SaaS: Which Is Best for Your Firm?

You’re ready to move your on-premises Microsoft ERP solution to the cloud. Before you commit, it’s important to consider your options so you can leverage all the cloud has to offer.

Migrating to a hosted cloud solution like Microsoft Azure enables you to keep using your current legacy Dynamics ERP platform, whether it’s GP, SL, NAV or AX. With only structural changes to your IT environment, you can start enjoying some of the benefits of the cloud. This includes eliminating the need for internal resources to manage the server hardware and software while also gaining the ability to quickly scale compute resources.

Sticking with your current legacy ERP platform and moving it to a hosted cloud environment seems like a reasonable choice. You’ve invested time and money, and you want to give your end-users the same familiarity they are used to.

But you won’t be able to reap all the benefits of the cloud that come with migrating to a software-as-a-service (SaaS) option for your ERP platform, such as Microsoft Dynamics 365. With automatic and regular system updates, the SaaS model allows you to take advantage of the latest digital transformation technologies that drive company growth.

Also Consider the Cost

It’s also important to consider the cost of a hosted cloud solution. The pricing structure for legacy Dynamics solutions is not always straightforward. Microsoft does not offer one standard price. Instead, customers choose their own data center and different features, depending on the location.

By using a SaaS solution like Dynamics 365, you avoid the upfront costs related to hardware and software. Remember, in a cloud hosting scenario, the provider is charging you for the hardware, but you are still purchasing the software licenses.

In contrast, with the SaaS model, you pay a monthly subscription rather than buying licenses outright. In addition to giving you a predictable per-user cost, you can also scale the number of users up and down as your business needs change.

Start Sooner with the SaaS Model

The SaaS model also allows you to start sooner with faster deployment options than traditional software. After you complete the planning and design phases, the production deployment takes about only 30 minutes. And with your SaaS provider managing the hardware and the software, your internal resources are freed up to focus on their regular job responsibilities and more strategic IT initiatives.

The switch from any of the legacy Dynamics ERP solutions to Dynamics 365 will also be easy for your end-users. The look and feel are similar, and they will still have all the same functionality they are accustomed to in GP, SL, NAV or AX—along with many new capabilities.

Tight Integration and Stronger Security

Another key benefit of Dynamics 365 is the tight integration that the ERP functions have with other key business functions as well as the Microsoft 365 Office suite. Within the Dynamics 365 suite, you have the option to add sales, marketing, customer service, and field service functions with the ability to flow data automatically among all the modules.

Any customer data that’s created or updated by the sales, marketing or services teams will immediately be available to the accounting team. ERP data also flows automatically to other internal teams. The interface is fully configurable—so each team can access this information anywhere they have an Internet connection and view data exactly how they want to streamline decisions and workflows.

Compared to the legacy Dynamics solutions, Dynamics 365 also offers stronger security. It runs in one of the most secure environments in the world—the Microsoft Cloud—and is closely monitored by top IT security experts. By utilizing multi-factor authentication (MFA), single-sign-on (SSO), and role-based security options, the Microsoft Cloud protects your Dynamics 365 data from external hackers as well as the accidental data leakage that can occur when internal users don’t follow your IT security protocols. In addition to safeguarding your data, you can also better defend your customer data.

To Learn More

It’s no secret the new Microsoft Dynamics 365 full SaaS solution is the recommended path forward for businesses that want to move their ERP system to the cloud. To learn more about your options and the process to migrate from your legacy Dynamics solution, contact Velosio today.