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Update: The Bridge to the Cloud 2 promotion mentioned in this blog has been extended through the end of 2025. (The promotion originally ran through June 2022, as reflected in the blog below.)
For many ERP users, a transition to a new solution can bring about excitement, but also a lot of understandable questions. It’s a big investment that, after all! Businesses using Dynamics NAV, especially those with a lot of customizations and add-ons, may look at Dynamics 365 Business Central and think: Would it be more of a hassle than beneficial to move?
Business Central is Microsoft’s premier mid-market ERP solution, and part of the Dynamics 365 suite of business applications. It’s cloud-based, boasts a modern and user-friendly interface across all the Dynamics 365 apps, and has native integration with other Microsoft apps (Office 365, Dynamics 365, Outlook, SharePoint, Teams…). Business Central and NAV are similar in base functionality and built on the same foundations; in fact, Business Central is NAV—the next generation, the latest and most advanced. The prime difference is, while NAV is built with C/AL code, Business Central uses AL code. This is what differentiates Business Central and is making it standard over NAV (Here’s the full story of Microsoft’s ERP history and its investment in Business Central.)
If you’re using NAV and considering a switch to Business Central, you may have many of the same questions our own clients have asked us. To help you make your most informed decision, here are our answers to the most frequently asked questions for a NAV to Business Central upgrade.
Q1: Do we have to upgrade to Business Central now?
No. You don’t need to update. However…Microsoft is no longer supporting NAV. There will be no more updates or new releases. Eventually, some older versions of NAV will no longer be able to get license files. This means if you need to add users, you won’t be able to. At the moment, new licenses are not available for NAV 2013 and older.
We will continue to service NAV, on-premises and on Azure.
Q2: What does “cloud-based” mean?
Dynamics 365 Business Central is cloud-based, which means that your data and computer applications are remotely stored and delivered over the internet. (This means Business Central and any other cloud-based solutions are available anywhere at any time.) This varies from on-premises systems, where everything is stored on local servers, perhaps down the hall from the office space, and which incur steep infrastructure costs to startup or upgrade.
Business Central is most cost-efficient when utilized as Software as a Service (SaaS), which is entirely on Microsoft’s cloud. We also host Dynamics NAV and Business Central clients on Microsoft’s Azure Cloud, an open and flexible cloud platform within Microsoft datacenters that is safer, faster, more redundant, more scalable, and more affordable than hosting on your own servers.
Q3: Can we have Business Central on-premises? Which option is better?
Yes, and we can do that for you. Licensing must be purchased upfront, and annual renewal fees are paid to Microsoft. Business Central on-premises upgrades are controlled, all add-ons are available, and you have full database access. For most partners, the price of Business Central on-premises includes licensing only, and it does not include costs for IT infrastructure (servers) or support. So you would have to consider that additional ongoing cost when deliberating which form to invest in.
Hosting on Azure allows you the benefits of the cloud—such as being able to access your apps anywhere, anytime, but you get a dedicated, private environment that will feel much like on-premises deployments. However, with Azure, you don’t have to worry about servers, IT, or support. Licensing can be purchased upfront (perpetual) or per user/per month. Upgrades are controlled rather than automatic, all add-ons are available, and you receive full database access.
But we do suggest moving on to the cloud for all its benefits. SaaS (Software as a Service) is deployed in a similar way to Office 365, where licensing is per user/per month and no servers are required. You access applications via a web browser and is available anywhere, anytime. SaaS includes automatic upgrades, many available add-ons, and no database access. It’s also the most cost-effective in terms of licensing and infrastructure costs (which are none).
We do have two considerations that may make SaaS a less favorable option for some companies:
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If your ERP includes many and large modifications, you are right to be leery about moving to Business Central SaaS. Customizations are built of custom code that alters how the system works. Updates—which are pushed automatically in Business Central SaaS—are changes to the code of the system. Therefore, sometimes an update can “break” a customization because it changes the code of the customization. This is typically not a concern with smaller customizations. If a customization breaks, you must have a partner or developer fix it. This would cost money to fix, as a partner cannot do that work for free. In these cases, on-prem or hosted on Azure may be a better choice for you.
But stick around for a discussion of migrating customizations, because those of you with large modifications may not need to keep them when moving to Business Central.
- If you live in a location that does not yet have strong internet available, using a browser-based application can pose a complication. You will need to assess this. In these cases, an on-premises solution may be better for the time being.
Q4: Why move when Business Central is NAV, but just newer?
Business Central is built on the same foundation as Dynamics NAV. In essence, it is the newest, most improved version of NAV. If you’re currently using NAV but want to stay current, relevant, and be on the forefront of technology, you will need Business Central.
Business Central is constantly being developed and improved upon. Upgrade Release Waves and monthly updates are free and automatic on the cloud and takes no effort on your part. NAV, on the other hand, is not receiving any new upgrades or releases.
Q5: What are the main feature differences?
Though the base functionality is the same between the two ERPs, Business Central includes enhancements and features that are not in NAV or that are far easier in Business Central than in NAV:
- More user-friendly and intuitive search function
- Credit card processing
- Connecting to external databases
- Connecting to websites, such as ecommerce platforms
For a deeper discussion of the differences between NAV and Business Central, reach out to us! We’ll be happy to discuss it further.
Q6: Does being on the cloud mean compromised security?
No! In fact, it’s better. When you use Microsoft’s Azure cloud, you get all the state-of-the-art security measures that Microsoft has already invested in, without having to navigate that process yourself. These measures include perimeter fencing, video cameras, security personnel, secure entrances, and real-time communications networks.
You can also opt in (which we recommend) to Azure Active Directory and multi-factor authentication options—available via Dynamics 365 and Office 365, to make sure that only your authorized users get into your system. With industry-standard encryption protocols and threat protection services, you have tight security.
Data itself is less likely to be lost, as well. Your data is redundantly stored in a main location and a secondary location within two Microsoft datacenters. If one datacenter is compromised (say, due to an earthquake), your data can be recovered via the backup data center in a different part of the country. This is a huge benefit of cloud-based applications – an on-premises environment will rarely have these redundancy and recovery options.
Whether you move NAV to the Azure cloud or move to Business Central (SaaS or on Azure), you will reap these rewards.
Q7: What happens to my data if I migrate?
There are conversion tools to take NAV data and move it to Business Central. This data will be usable within Business Central just like data entered after go-live.
Q8: What happens to my customizations and add-ons if I migrate?
The first question to ask when considering customizations and add-ons is are they even necessary anymore? Business Central is the next generation of NAV, it’s been improved and features have been added. Perhaps your bank reconciliation add-on (or whatever add-on you have) isn’t necessary anymore because Business Central has bank rec out-of-the-box or there’s an even better way of doing the action your customization was built to do. Check in on this before moving forward. (A good partner will really get to know your business processes and needs to help you assess both your add-ons and customizations.)
Add-ons
Many ISVs have converted their add-ons for Business Central, which requires switching their C/AL code they previously used for NAV over to the AL code that Business Central uses. If your ISV has not already done this, you can look into if your ISVs plan to do so. If they have a timeframe, you can plan around that. If they don’t intend to make their add-on compliant, you won’t have that add-on. And you’ll want to find an extension (the Business Central add-on equivalent).
Customizations
Many ISVs have converted their add-ons for Business Central, which requires switching their C/AL code they previously used for NAV over to the AL code that Business Central uses. If your ISV has not already done this, you can look into if your ISVs plan to do so. If they have a timeframe, you can plan around that. If they don’t intend to make their add-on compliant, you won’t have that add-on. And you’ll want to find an extension (the Business Central add-on equivalent).
We can help you assess if you even want to keep your customizations, or if the abilities of Business Central make that customization unnecessary. Whatever customizations are deemed necessary, we can translate those customizations into Business Central and plan it into your migration.
Q9: What about price?
These costs for licensing are per user, per month, and it is named-user licensing, meaning that only one user can use each license:
- Essential – $70 per user/mo
- Premium – $100 per user/mo
- Team Member – $8 per user/mo
To be hosted on Azure, there is additional costs to your Microsoft Partner, while to host on-premises, you need to factor in the additional cost of infrastructure, IT, service, maintenance, and periodic infrastructure updates. Hosted on Azure, you are able to buy your licensing up front (perpetual owned) instead of per user/month, but you will need to pay renewal fees to Microsoft. On-Premises, you have to buy licensing up front and have to pay renewal fees to Microsoft.
We have separate in-depth blogs if you’re wondering which Business Central licensing or hosting option is best for you.
A limited time promotion—from September 1, 2021 to June 30, 2022, Microsoft is running its Bridge to the Cloud promotion for qualifying customers. This promotion offers large benefits, both financial and strategic—including a 60% discount on Business Essentials and Business Central Premium per user/per month licensing and dual access rights to Business Central and your current solution. See if you qualify.
Q10: What are the requirements to migrate (if there are any)?
None, really. The path to migrate depends on your current solution, and you do need to consider add-ons, customizations, and if you’re moving to on-prem, Azure, or SaaS. When moving to Business Central on-premises, you will have to look at the version of the Operating System and have to look at SQL. In most cases both will have to be updated. We’ll help you figure all this out.
Q11: How long will a migration take?
This is dependent on your Microsoft Partner, but as for Syvantis, these are the average timeframes from start to go-live:
- Basic implementation (few to no customizations, or small customizations) – 6 weeks
- Average implementation (some customizations) – 3-4 months
- Long implementation (lots of customizations) – 6 months
As for training: NAV users should have confidence in a migration because you’re in a great position. Business Central is going to feel quite similar to NAV, just more modern and cloud-based. Your users will need less time to acquaint themselves with the system than users on another ERP system, like Dynamics GP.
Q12: Can I try Business Central out first?
Yes! Microsoft does a 30-day trial. You can use data available within the trial or you can even import your own.
And the Bridge to the Cloud promotion going on through June 30, 2022 allows businesses to begin transitioning to Business Central and trying it out while still using their current solution.
Q13: What if we aren’t ready for an upgrade to Business Central yet?
Dynamics NAV users are in a strong position, and though we suggest moving to Business Central, we understand that you may have invested quite a bit lately in NAV and don’t have the budget to switch (or some other business reason is holding you back). You don’t have to switch now, but we urge you to seriously consider migrating in the future. To prepare for that:
- Don’t invest in infrastructure or hardware (like new servers or ISVs). Doing so will make it hard to justify moving to Business Central in future. Instead, consider migrating NAV to the cloud, which you can then begin taking advantage of immediately.
- Implement the NAV web client to get your users used to running ERP on a website (which is different than the classic access methods). This will include a newer and more modern interface that users may appreciate as well.
- Clean up your data in preparation for the future migration. Depreciate any Mods you are not using.
- Link your NAV to the Intelligent Cloud to begin taking advantage of it!
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Dynamics NAV to Business Central Upgrade FAQs
Make the first move
We hope many of your immediate questions have been answered, but if you have additional or follow-up questions, we’re here and happy to help! Fill out the form below to get in touch with our skilled NAV/Business Central consultants. They can help you determine the best upgrade path for your organization, or help you take action if you aren’t ready to move quite yet.
