Dynamics 365 Business Central in the cloud: Why do companies choose it, and what are the challenges?

In 1984 three resourceful colleagues from Copenhagen created a system named Navision. A decade later, its version 1.0 became the first software solution certified by Microsoft. After almost 40 years, many upgrades, and new functionalities, this ERP system turns into an all-in-one business management solution preferred by many companies worldwide. One of the most significant moments in its evolution happens in 2018 when a complete rebranding was released, and Dynamics 365 Business Central was born. The advent of its cloud version marks a new stage in the development of software solutions.

As the cloud ERP system provides companies with many handful features for process and cost optimizations, we decided to dive into the most common reasons for choosing Dynamics 365 Business Central Cloud and the challenges that come along when migrating.

ERP in the cloud: Why now and what’s new?

• COVID-19 – Before a year or so, the migration to the cloud was a priority for a limited number of companies. But during the pandemic, this process was accelerated. And the reason is simple – the cloud technology provides access to your data from anywhere with an internet connection – a handy feature suitable for the remote type of work. 

• Protected in the cloud – On a daily basis, there are many cyber-attacks on companies’ data from different industries. And those who commit the abuses are constantly improving their skills. In this line of thinking, Microsoft cloud has proven to be a safe place to store data compared to the on-premise infrastructure. The reason is that Microsoft invests over $ 1 billion on yearly basis in security in response to the global cyberthreats. 

Why do companies choose ERP in the cloud?

The reasons for companies to choose the cloud version of the ERP system are as diverse as the benefits of the technology. Here are the most common: 

• Focus on the core business – According to a research of Worlds Outsourcing Summit, 36% of the participants stated the opportunity to focus on their business activity as a main reason for choosing the cloud. After the migration is complete, the infrastructure is a responsibility of the vendor. That helps the teams in an organization to concentrate on their key activities. 

• Cost optimization – Again, 36% of the participants in this survey selected cost efficiency as another key reason. The lack of hardware and internal specialists to maintain it eliminates some of the expenses. Moreover, the implementation cost is reduced as well. The cloud version is offered in a subscription-based model, the software comes with lower total cost of ownership (TCO). Furthermore, if you use an on-premise version, there is always a risk of damages due to disasters, leading to unforeseen expenses. 

• Scalability – The dynamic business environment impacts many companies. The stress it causes could be relieved in terms of the ERP solution due to the fact that the cloud version is flexible in changes of scale. In other words, you can modify the number of licenses of your ERP system and use as many as your business needs.

• Always working on the newest version – The upgrades of the cloud version are automated. On an annual basis, there are two major upgrades, for which users receive an on-time notification. The other small monthly updates come with an option to be scheduled by the users. 

What are the challenges?

Some challenges related to internal processes may appear when migrating to the cloud. Teams can avoid them easily with the necessary preparation. Here are some of the most common ones:

• The discomfort of storing data in the cloud – The thought that your company information is not in your server room can make you feel unsafe. But the truth is that the cloud is the safest place to keep your data. You will understand it as soon as you find the right vendor.

• Conservatism and skepticism among IT specialists – Making changes can be scary but necessary for the development of your organization. The migration to the cloud is proven to be beneficial for the business and not only. Tasks related to hardware maintenance, updates, and data security become a responsibility for the provider, meaning that the work of the internal IT teams is getting significantly relieved.

If you want to learn more or migrate to the cloud version of Dynamics 365 Business Central, please contact us.