If you’ve been around the Dynamics community for a while, you might remember when Dynamics 365 CRM customers started feeling the pinch as Microsoft started increasing the prices on CRM users once they hit a critical mass. At what point should we be asking: Is a price hike coming for BC too?
Let’s face it—Microsoft’s strategy isn’t new. We’ve seen it before with Microsoft Office, Windows, SQL Server, and Dynamics 365 CRM, and there are strong signs that the same playbook might be in motion for Business Central.
Microsoft’s Playbook: Build, Capture, and Then… Raise Prices
Microsoft’s growth strategy is pretty straightforward:
- 1. Build a somewhat competent (not great) product.
- 2. Capture as many customers as possible with competitive pricing.
- 3. Once they hit critical mass, push prices through the roof.
Microsoft has been pretty transparent about its long-term strategy. They are investing heavily in cloud infrastructure and software development, and as these investments mature, it’s only logical that they’ll look to recoup those costs. Once they have a large, locked-in user base, the pricing becomes more of a “take it or leave it” situation.
What’s Next for Business Central Customers?
As Microsoft builds critical mass in the BC space, it’s highly likely that they’ll follow the same pricing pattern we have seen them take in the past. When Business Central reaches that tipping point, expect the prices to rise—perhaps incrementally at first, but over time, think double or triple (yeah, Dynamics CRM prices more than tripled). And when the prices go up, what are you going to do? Spend time and treasure to make another ERP move? Or just languish in the trap?
When Business Central reaches that tipping point, expect the prices to rise—perhaps incrementally at first, but over time, think double or triple.
How Do You Avoid the Price Trap?
Here’s the silver lining: you have options. If you’re a Dynamics GP customer feeling the pressure to switch to BC, you don’t have to jump on that bandwagon. There are alternatives that don’t leave you vulnerable to the same price hikes that are likely coming for Business Central.
If you love Dynamics GP, there’s no reason to rush into a switch that could cost you hundreds of thousands of implementation and training dollars plus an unknown future price per user. Dynamics GP is a tried-and-true solution, and we’ve been supporting it for over 20 years. In fact, with PowerGP Online, you can continue using GP in the cloud without getting caught up in Microsoft’s price trap.
Business Central Might Not Be the “Cheaper” Option for Long
While BC might look like the shiny new toy right now, let’s not forget that Microsoft’s end game is profitability. Once they’ve locked in enough users, the pricing is bound to shift, and it won’t be in your favor.
Business Central lacks the robust add-ons that GP users rely on. Do you really want to pay more for less?
Here are a few reasons to think twice before making the leap:
BC lacks the robust add-ons that GP users rely on
Many businesses have built their entire operations around Dynamics GP and its extensive third-party ecosystem of ISVs. BC just doesn’t offer the same breadth of functionality yet. Do you really want to pay more for less?
Migration isn’t as simple as it seems
Moving from GP to BC isn’t just a simple upgrade or migration—it’s a re-implementation. The hidden costs of switching, training, and rebuilding workflows, integrations and reports can be substantial.
GP has a long runway
With Microsoft committing support for GP through 2031, there’s no rush to abandon ship. GP still has years of life left, and we’re here to make sure it runs smoothly for your business well into the future.
Don’t Let Pricing and Pressure Be Your Guide
We understand that pricing plays a major role in ERP decisions, but it’s not the only factor. When it comes to choosing the right system, you need to consider the total cost of ownership over the long haul. That means factoring in the potential for future price hikes, re-implementation costs, and how well a system meets your unique business needs.
Staying on Dynamics GP gives you stability and control without the risk of surprise costs.
If you’re a GP customer, you’ve already invested heavily in your ERP system—why jump ship only to find yourself facing higher prices down the road… especially when you get fewer features? Staying on Dynamics GP on premise or moving to the cloud with PowerGP Online gives you stability and control without the risk of surprise costs.
Njevity’s Commitment to Your Business
At Njevity, we’re here to help you make the best decision for your business, not just the one that seems trendy today. We’ve seen customers who made the leap to Business Central, only to be frustrated with the hidden costs, lack of functionality and the seemingly never ending projects just to get back the features they had with GP. We’ve also seen companies thriving with GP for decades. The bottom line is this: we are Dynamics GP’s Ride or Die Partner, and we can be YOUR Ride or Die Partner for GP Support, providing the support, guidance, and expertise you need to thrive.
If you’re feeling the pressure to move to Business Central or concerned about future price hikes, let’s talk. At Njevity, we believe in empowering you to make decisions that benefit your business—not Microsoft’s bottom line. Let’s explore the options that keep your costs predictable and your ERP system running smoothly.
Contact us today, and let’s make sure you’re on the right path for the future of your business.
