Microsoft is ending support for the on-premises ERP platform Dynamics GP. Customers are forced to move to the cloud.

Microsoft announces the impending end of Dynamics GP in a blog. In exactly five years, on September 30, 2029, support for the ERP platform will end. Security updates will continue until April 2031.

Microsoft has been preparing the swansong of Dynamics GP for several years. In 2022, it was already announced that Dynamics GP would no longer have to rely on “innovation”, which means that the platform will continue to be maintained. License sales will stop from April 2025. Following today’s announcement, there may not be too many new licenses sold.

Forced move to the cloud

In five (or seven) years, Dynamics GP customers will only have one option left: switching to the cloud-based Dynamics 365 Business Central. Microsoft encourages companies to make the transition as quickly as possible and provides guidance on how to migrate.

Companies that prefer to keep the ERP system on-premises will have to look elsewhere, but it is already clear that the supply of on-premise ERP will be limited over the next decade. Microsoft is following the course of Oracle and SAP, among others, who also make no secret of the fact that the future of their platforms lies in the cloud and not on-premises.

From the provider’s perspective, this is not illogical: cloud services simply ensure a more constant flow of income. Instead of a one-time license, customers pay monthly or annually for purchased services. As a customer, you are relieved of all aspects of management and maintenance, but there are many companies that still prefer on-premise solutions to maintain control.

Suppliers sometimes seem to forget this, as demonstrated by the dissatisfaction SAP is causing among its on-premise customers. Nowadays, new features are often rolled out exclusively for cloud customers. Anyone who has ever decided to go on-premises must now come to the conclusion that this decision has consequences.