Dynamics GP vs. Dynamics 365 Business Central

 Microsoft Dynamics GP and Dynamics 365 Business Central are similar ERP solutions with overlapping features and functions. While these solutions share a great deal, several vital differences may make one a better fit for your business than the other. As Microsoft prepares to end support and security updates for Dynamics GP by April 30, 2031, discover how the software stacks up against its spiritual successor, Business Central.

Cloud vs. On-Premise

The main difference between Business Central and Dynamics GP is the design of each product. Dynamics GP is a legacy product initially developed for on-premise deployment, updated recently to support some cloud functionality. Business Central is a relatively young solution built specifically for the cloud.

Because Business Central was developed as a cloud solution, it has no associated hardware requirements or costs. Microsoft manages upgrades, rolling them out automatically with no downloads or installation required.

Although Dynamics GP allows cloud hosting, it was built as an on-premise solution and performs best in that environment. Whether your business deploys Dynamics GP in the cloud or on-premise, you need to schedule updates with Microsoft or your software provider—they do not happen automatically.

Microsoft’s Focus

Before we can compare these two Microsoft products, we need to talk about the future of Dynamics GP. Microsoft puts great emphasis on the cloud and has positioned Dynamics 365 Business Central at the center of its strategy.

The last major update for Dynamics GP took place in 2022 with the release of version 18.5. Microsoft has announced that routine maintenance and security updates will continue through September 2029, at which point support will end. Critical security patches will continue through April 2031, at which point Microsoft will officially say goodbye to Dynamics GP.

As Microsoft transitions away from Dynamics GP, the developer focuses on cloud systems like Dynamics 365 Business Central. If you want to learn more, check out our Has Dynamics GP Reached End of Life article.

Features

Both Dynamics GP Features and Microsoft Dynamics 365 Business Central Features are segmented by licensing tiers, each tier carrying its unique pricing structure. Both solutions adhere to Microsoft’s terminology for licensing tiers, encompassing core licenses and advanced licenses.

In this article, we delve into a comparison of the core features bundled within each solution’s base licenses. For a detailed breakdown of the disparities in features between the Advanced license tiers of Microsoft Business Central and Dynamics GP, refer to our comprehensive Comparison Report.

Dynamics GP Core Features:

Dynamics 365 Business Central  Core Features:

• Finance Management
• Sales & Marketing
• Sales & Delivery
• Purchasing & Payables
• Inventory
• Supply Planning & Availability
• Project Management
• Warehouse Management

Pricing Comparison

When it comes to pricing, both Microsoft Dynamics 365 Business Central and Dynamics GP offer different structures to suit varying business needs. Here’s a breakdown of the pricing plans for each:

Dynamics GP:

Starter Pack with 3 Users:
$5,000 one-time perpetual license fee
$900 annual enhancement fee ($800 after the first year)
Additional Full Users: $3,000 one-time fee

Microsoft Dynamics 365 Business Central:

Essentials Package:
$840 per user annually
Additional Business Users: $70 per user per month

Choosing between Microsoft Dynamics 365 Business Central and Dynamics GP involves considering not just the features but also the pricing structure that aligns best with your budget and operational requirements. For precise cost estimates and further details, consulting with a Microsoft partner would be beneficial.

Sum It Up

Dynamics GP is a tried and true ERP solution with built-in HR and Payroll capabilities and an extensive network of users, partners, and consultants. The software usually performs best when deployed on-premise. Although it’s supported by Microsoft, with a product roadmap covering the next ten years, Dynamics GP is not the company’s primary focus.

Dynamics 365 Business Central is Microsoft’s new cloud-based ERP solution, offering full ERP functionality at an affordable price. Microsoft is committed to the cloud, and Business Central is at the core of its future strategy.

At Cargas, our expert consulting team specializes in both Dynamics GP and Business Central. We’ve been working with Dynamics GP since 1993 and were one of the first Microsoft partners to begin implementing Business Central. If you’re struggling to determine which of these solutions is the best fit for your business, we’d love to help. Let’s connect to talk about your needs and what you’re looking for in a software solution.