Dynamics AX to Dynamics 365 migration is one of the anticipated queries for the existing users of Dynamics AX. Because they are confused between choosing the best option, whether they have to go for migration or Dynamics 365 upgrade.
No doubt, Dynamics AX is a powerful business application to streamline the entire finance and operations of an organisation. It empowers businesses to get financial visibility and transparency across all processes. But since its launch, the time has changed. To grow in this rapidly changing world, you should ask these questions:
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Is Dynamics AX a perfect fit for our digital world?
Does it align its standard capabilities with modern business demands?
Does it offer you superiority over other similar business applications to sustain in a highly competitive market?
Is a Dynamics AX to Dynamics 365 migration necessary?
There can be a lot more similar questions that users like you are probably looking for. If you are someone who is also looking for unbiased answers to similar questions, this blog is for you.
Dynamics AX Support Status: What Has Changed?
Microsoft Dynamics AX is now a legacy ERP platform. Mainstream support for Dynamics AX 2012 R3 ended on 12 October 2021, followed by the end of extended support on 10 January 2023. Microsoft recommends moving to its current finance and operations applications.
For organisations using AX for complex finance and operational requirements, the most relevant modern Microsoft applications are typically Dynamics 365 Finance and Dynamics 365 Supply Chain Management. Depending on business requirements, other applications such as Dynamics 365 Commerce and Project Operations may also form part of the target solution.
You may still hear customers, consultants and internal teams use terms such as Dynamics 365 Finance and Operations, D365 F&O, or even Dynamics AX to D365 migration. However, Microsoft now provides Finance, Supply Chain Management and related capabilities as individual Dynamics 365 applications.
Some businesses with substantially simpler requirements may also consider a fresh implementation of Dynamics 365 Business Central, but this should be treated as a different ERP selection and reimplementation decision rather than a direct AX technical upgrade.
Before choosing the destination system, you first need to decide which migration approach makes sense for your current AX environment.
Dynamics 365 Migration vs Upgrade: Which suits you best?
Migration and upgrade are often used interchangeably, but they do not always mean the same thing.
Understanding the difference is important because your choice will affect project scope, cost, data, customisations, timelines and the amount of change your users experience.
Upgrade
For organisations running Dynamics AX 2012, Microsoft provides an upgrade path that allows customers to move their existing data and code towards the latest finance and operations applications. Microsoft currently supports this upgrade route from Dynamics AX 2012 R2 and AX 2012 R3, with the source environment expected to be brought to the appropriate latest cumulative update before the upgrade.
An upgrade can make sense when your current AX setup still reflects how the business wants to operate and a significant proportion of the existing configuration, data and customisations remains relevant.
However, upgrading does not mean every historical customisation, integration and process should automatically be carried forward.
Migration or Reimplementation
A migration or reimplementation gives you greater flexibility to determine what should move into the new Dynamics 365 environment.
Instead of recreating the entire legacy AX implementation, you can review existing processes, identify the data that needs to be retained, remove redundant customisations and configure Dynamics 365 based on current business requirements.
This approach may be more appropriate when the AX environment contains years of historical data, extensive custom development, outdated integrations or processes that no longer match how the business operates.
For Dynamics AX 2009, Microsoft provides a Data Migration Tool for moving data to finance and operations applications, and Microsoft currently identifies this as the supported upgrade path from AX 2009.
Ultimately, the decision between an AX upgrade and a Dynamics 365 reimplementation should be based on an assessment of your current environment rather than on a generic rule.
See Also – Dynamics 365 On-premises to Cloud Migration
7 Critical points for Dynamics AX to Dynamics 365 Migration
Business runs on data—the lifeline of the entire business. In 90% of scenarios, businesses opt to migrate from one system to another so that they can transfer the essential data while removing the unnecessary ones.
If you have planned to migrate from Dynamics AX to Dynamics 365 Cloud, you have taken a wise decision because this method will empower you to resume your business process rather than start a new journey. Below, seven essential points are given that are worth considering before you allow the process to start.
Analyse the exiting Dynamics AX system.
First, your Dynamics AX implementation partner will analyse the existing system and find areas for improvement. During this process, you need to help the partner understand the processes you follow to conduct business.
Build an implementation strategy
Based on ERP system analysis, your Dynamics 365 Finance implementation partner will build a strategy to ensure a successful implementation. In this, they will give you a quote about cost, time, customizations, integrations, and data about required resources.
Filtering out the essential data.
After the strategy, you need to justify the data between essential and non-essential parts of your existing system. Based on the data, they will suggest the space required in the cloud to save it, or they will suggest the required resources to build an on-premises data server.
Start the process.
Once you have all the data, your Microsoft solutions partner will start to migrate your existing system to Dynamics 365 finance and operations. During this entire process, you need to keep checking whether the process is going in the right direction or not.
Test the capabilities of the new system.
Once your partner implements the new system, you need to check its capabilities. Also, you need to check that all integrations, customizations, and add-ons are perfectly implemented on the new system.
Training for users
Offering training to users empowers the team to fully utilise the functionalities and capabilities of the newly installed system. Also, it lets them understand the new tools and features of Dynamics 365 so that they can use them to accelerate growth.
Post implementation support
Post-implementation support is essential for all businesses to grow consistently. No one knows when they are going to encounter an issue or when to resolve it. To avoid such situations, your partner will offer you support in all scenarios.
Check Also – Dynamics 365 Supply Chain Management: Overview, Benefits, Features
How do your customisations and reports migrate during the process?
Customisations require particular attention during an AX to Dynamics 365 migration because the customisation model has changed significantly.
Dynamics AX commonly allowed developers to modify or overlay Microsoft application code. Modern finance and operations applications use an extension-based customisation model instead. Microsoft describes extensibility as the replacement for the older overlayering approach.
As a result, existing AX code normally needs to be analysed rather than simply transferred unchanged.
Microsoft provides code upgrade services in Lifecycle Services that can help analyse an AX 2012 codebase and estimate the work required to move it towards the current finance and operations application architecture.
A useful way to review AX customisations is to classify them into four groups: business-critical functionality that needs to be redesigned or migrated, functionality now available as standard in Dynamics 365, requirements that can be addressed through extensions or Power Platform, and functionality that is no longer needed.
The same principle applies to AX reports.
Do not automatically recreate every report simply because it exists in the old system. Identify which reports users still rely on and determine whether they should be rebuilt using Dynamics 365 reporting capabilities, Power BI or another appropriate reporting approach.
This can reduce migration effort while giving users reporting that better reflects their current requirements.
How long will it take to upgrade your system from Dynamics AX to Dynamics 365?
It totally depends on the level of complexity of your current business. In general, it can take from a few weeks to months. There is no such rule we can apply to find the exact time. However, we have several factors that can determine how long your project will take.
Such factors include:
- Licencing model
- Level of customizations
- Total number of users
- Amount of data
- Required integration
- Mode of deployment
To get the exact details about time and cost, feel free to contact Dynamics Square, a leading Microsoft Solutions Partner.
How to Choose the Right Dynamics 365 Finance and Operations Implementation Partner?
Choosing the right Dynamics 365 implementation partner can make a significant difference to the success of your migration.
The partner should understand both legacy Dynamics AX and the current Dynamics 365 platform. This matters because the project involves more than configuring a new ERP. Your partner also needs to understand existing AX data structures, customisations, integrations and operational processes.
A capable migration partner should first assess your environment and business requirements before recommending whether you should upgrade, reimplement or take a more selective migration approach.
They should also be able to explain which AX customisations should be retained, which can be replaced with standard Dynamics 365 functionality and which are no longer worth carrying forward.
Dynamics Square UK helps businesses assess existing Dynamics AX environments and plan migrations to Microsoft Dynamics 365 Finance and Supply Chain Management.
Our Dynamics consultants work with organisations to understand existing business processes, data, integrations and customisations before developing an appropriate migration roadmap.
If you are currently using Dynamics AX and are unsure about the right route forward, contact Dynamics Square UK to discuss your Dynamics AX to Dynamics 365 migration requirements.
Some FAQs About Dynamics AX to Dynamics 365 Migration
1. Can Dynamics AX 2012 be migrated to Dynamics 365?
Yes. Microsoft provides an upgrade path from Dynamics AX 2012 R2 and Dynamics AX 2012 R3 to its current finance and operations applications. The exact approach depends on your AX version, cumulative update, data, customisations and target Dynamics 365 environment.
2. Is Dynamics AX still supported by Microsoft?
Dynamics AX 2012 R3 mainstream support ended in October 2021 and extended support ended on 10 January 2023. Organisations still using AX should therefore evaluate their long-term ERP and migration strategy.
3. What replaced Microsoft Dynamics AX?
The capabilities previously associated with Dynamics AX have evolved into Microsoft's finance and operations applications, including Dynamics 365 Finance and Dynamics 365 Supply Chain Management. Other Dynamics 365 applications can be added depending on business requirements.
4. Should we upgrade AX or reimplement Dynamics 365?
It depends on the condition of your existing AX environment. An upgrade may be suitable when current processes, code and data remain relevant. Reimplementation may make more sense when AX contains extensive outdated customisations, poor-quality data or processes the business wants to redesign.
5. Can Dynamics AX customisations be migrated to Dynamics 365?
Existing AX customisations need to be assessed because modern finance and operations applications use an extension-based model. Some code can be upgraded or redesigned, while other customisations may be replaced with standard Dynamics 365 capabilities or retired.
6. How long does an AX to Dynamics 365 migration take?
The timeline depends on factors including AX version, data volume, customisations, integrations, number of users and entities, testing requirements and business complexity. An assessment of the existing AX environment is required to establish a realistic project plan.
7. How much does Dynamics AX to Dynamics 365 migration cost?
There is no universal migration price. Costs depend on licensing, implementation scope, data migration, customisations, integrations, testing, training and support requirements. A detailed AX assessment is the best way to estimate the required investment.
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