Microsoft's new direction with ERP part 2: Where is Microsoft ERP now?

Although it is difficult to determine the full customer base of Microsoft applications, we do know that the installed base in 2015 was: 

Dynamics GP: 47,000 Customers
Business Central (formerly NAV): 110,000 Customers
Dynamics SL: 13,500 Customers
Dynamics 365 for Finance and Operations (formerly AX): 20,000 Customers

Dynamics GP has a large and devoted user base, and we expect it to be a strong performer for Microsoft for the next several years.  Dynamics GP can be deployed either on premise or in the cloud. 

You will see blogs that say the Business Central is “not ready yet.”  What these blogs are referring to is Business Central SaaS (“Software as a Service”) – the pure cloud version of Business Central, which has been in the market since April 2018.  It’s important to understand that Business Central is simply the newest version of Dynamics NAV, so it is a mature application with a very large customer base. 

Currently, Business Central can be deployed in multiple ways:  Software as a Service (“SaaS”), On Azure, On Azure Dedicated, or On Premise.  

• BC SaaS (Software as a Service):  Deployed on Microsoft’s public cloud, similar to Office 365.  Licensing is purely by the user by the month. 

• BC On Azure:  Deployed in a private environment on Microsoft’s Azure cloud.  Licensing can be acquired either by paying by the user by the month or purchasing up front. 

• BC On Azure Dedicated:  Deployed on your own servers in Microsoft’s Azure cloud.  Licensing can be acquired either by paying by the user by the month or purchasing up front. 

• BC On Premise:  Deployed on your own in-house servers.  Licenses must be purchased up front and annual renewal fees must be paid to Microsoft. 

Here are some differences between these options: 

BC SaaS

Servers: Microsoft Public Cloud
Licensing: Monthly
Scalability: Yes
ISV Compatible: Limited
Database Access: No
Intelligent Cloud: Full
Cost: $

BC on Azure

Servers: Microsoft Private Cloud
Licensing: Monthly or Purchase
Scalability: Yes
ISV Compatible: Full
Database Access: Yes
Intelligent Cloud: Some
Cost: $$

BC on Azure Dedicated

Servers: Microsoft Dedicated Cloud
Licensing: Monthly or Purchase
Scalability: Yes
ISV Compatible: Full
Database Access: Yes
Intelligent Cloud: Some
Cost: $$$

BC on Premise

Servers: On Premise
Licensing: Purchase Up Front
Scalability: No
ISV Compatible: Full
Database Access: Yes
Intelligent Cloud: Some
Cost: $$$

Learn about what we recommend for each Microsoft ERP in part three of this series.