It’s been a year since Microsoft announced Dynamics GP’s end-of-support in 2029. The conversation has been an odd combination of both noise and silence.
Some aren’t saying much, perhaps because there’s a lot of runway between now and 2029, or they’re betting on Microsoft pushing out the date (they won’t). Others, meanwhile, are leaping at the chance to push panic-based migrations.
Neither of these is helpful when you're running a business that depends on GP working exactly as configured.
What you need to know is this: you have options, and the right choice depends entirely on your business situation.
Cloud hosting is one path, and in this post, we’ll break down an approximation of what hosting your GP instance in the cloud actually costs, how long migration takes, and most importantly, how to know if it fits your specific situation and timeline.
Yes, time is ticking, but more importantly, planning beats scrambling.
What moving GP to the cloud actually means (and what it doesn't)
Before we talk numbers, let's clarify what we're discussing.
Moving GP to the cloud means your system runs on servers in secure data centers instead of your office. You access GP through the internet rather than your local network, and a hosting provider manages infrastructure, security, and maintenance.
- What stays the same: Your GP version, customizations, workflows, data, and user experience. Your team uses the same system they know. The business processes that work don't change.
- What changes: Server location, access method, and who manages the infrastructure. Instead of your IT team maintaining physical servers, the hosting provider handles hardware, updates, backups, and security.
- What problems this solves: Aging server hardware, rising maintenance costs, security vulnerabilities, disaster recovery gaps, and IT resource constraints. According to our analysis, average on-premise costs run approximately $1,500 per month when you factor in server hardware, power, cooling, and IT management—compared to roughly $700 monthly for cloud hosting.
- What it doesn't solve: GP functionality limitations, missing features your business needs, or outdated business processes.
In the end, what matters is whether your challenges are about what GP can do, not where it lives. Cloud migration won't address the former.
However, if (and when) servers are aging, maintenance costs are climbing, or you need better disaster recovery, cloud hosting solves real problems.
The real costs of cloud-hosting GP
Cloud hosting costs break down into one-time migration expenses and ongoing monthly fees.
Forrester Research shows cloud migrations can deliver 265% ROI over three years. But that assumes you're using the full timeline, not treating cloud hosting as a brief stopgap before another migration.
Your timeline is yours to control.
We've helped clients optimize on-premise GP, migrate to cloud hosting, and transition to Business Central—sometimes all three as their business needs evolved. The right answer depends on your situation, not someone else's deadline.
Realistic migration timelines
According to our experience migrating clients, cloud migration projects start at 10 weeks minimum, with complexity driving longer timelines:
Simple migrations: 10-12 weeks
- Lightly customized GP
- Small user base (under 20 users)
- Few integrations, single company database
Moderate migrations: 12-16 weeks
- Some customizations and add-ons
- Mid-size user base (20-50 users)
- Multiple company databases, several key integrations
Complex migrations: 16-24+ weeks
- Heavy customization
- Large or distributed user base (50+ users)
- Complex integration landscape, multi-company setup
Migration phases break down as:
- Discovery and planning (2-4 weeks)
- Environment setup (1-2 weeks),
- Data migration and validation (2-4 weeks),
- Customization and integration work (2-6 weeks),
- Testing and training (2-4 weeks)
- Go-live stabilization (1-2 weeks)
What extends timelines?
Undocumented customizations, data quality issues, integration complexity discoveries, and extended testing requirements. Rushing migrations creates post-go-live issues.
Is cloud hosting right for your organization?
"Is cloud hosting good?" is the wrong way to look at this. More accurately, you should be thinking, "Does cloud hosting solve problems we actually have?"
Here's how to evaluate fit for your specific situation.
Start with what you're trying to solve
Cloud hosting solves infrastructure problems:
- Aging servers approaching replacement
- Rising maintenance costs
- Security and disaster recovery gaps
- IT resource constraints
- Remote access needs
It doesn't solve functionality problems:
- Missing GP features
- Outdated business processes
- Industry-specific requirements
- Scalability limitations for business growth
If you're trying to solve a functionality problem, cloud hosting is a detour.
Summarizing the business case
Cloud hosting makes financial sense when the total cost of ownership favors it over your alternatives. Here's how to think about it:
Cloud hosting typically makes sense when:
- Servers are approaching end-of-life and need replacement
- On-premise costs exceed $1,000/month
- GP functionality meets business needs for your planning horizon
- You want improved security and disaster recovery
- IT resources would be better deployed on strategic initiatives
Other paths might serve you better when:
- Primary challenges are functionality limitations
- Recent infrastructure investments haven't been fully depreciated
- Business is growing beyond what GP supports
- You need features that only newer ERP systems provide
- You prefer maintaining direct infrastructure control
Staying on-premise and optimizing GP works when:
- Your infrastructure is recent and costs are manageable
- You have strong internal IT resources
- Your customizations deliver significant business value
- You want to maximize your GP investment before migrating
- You're planning carefully for the eventual Business Central transition
What about the 2029 timeline?
Here's the honest answer: 2029 is a planning consideration, not a crisis deadline. Yes, Microsoft support ends then. But that means that you have time to start figuring out your future.
We're not here to scare you. We're here to help you plan intelligently. The organizations that benefit most from cloud hosting decisions made now typically have aging infrastructure requiring replacement, on-premise costs exceeding $1,200 monthly, and GP functionality that meets their needs for the next few years. If that's the case, cloud hosting deserves a serious evaluation.
If that's not you, we can help you optimize what you have, plan your long-term strategy, and execute when the timing makes sense for your business.
Making the right decision for your business
Our team includes the Dynamics GP experts who built your system, literally, from original design through decades of support. We understand what your platform can do and what your options really look like.
There’s no one path we’ll push you to follow because we can support all of them: current GP optimization, cloud hosting, or Business Central migration when you're ready.
During this conversation, we'll evaluate your environment, clarify your options, and help you make the choice that serves your organization's needs, timeline, and budget.
