Great Plains Software, now rebranded as Microsoft Dynamics GP, is a comprehensive accounting solution for small and medium businesses. As Microsoft focuses innovation on Dynamics 365, many organizations face a decision: stay with GP or migrate to Dynamics 365 Business Central. This guide helps you evaluate your path. Great Plains Software is a U.S.-based company founded in the 1980s that developed one of the first comprehensive accounting solutions for small and medium-sized businesses, later rebranded as Microsoft Dynamics GP. Next, we examine what Microsoft Dynamics GP looks like today.
What is Great Plains Software?
Great Plains Software was a U.S.-based company founded in the 1980s. It developed one of the first comprehensive accounting solutions tailored for small and medium-sized businesses. The company’s main product was known as Great Plains Accounting Software. This early innovation laid the groundwork for modern ERP systems. Great Plains Software was acquired by Microsoft in 2001. This acquisition marked a significant shift, integrating the established accounting solution into Microsoft’s growing business software portfolio. The migration decision became relevant as Microsoft began directing its innovation efforts towards its newer cloud-based solutions. This strategic pivot necessitates that organizations using Dynamics GP evaluate their future with the software.
Why is this migration decision relevant? Because Microsoft’s strategic focus is now squarely on the Dynamics 365 suite, pushing forward with cloud capabilities and integrated business intelligence. This means that while Dynamics GP continues to be supported, its feature development and innovation are significantly slower compared to Dynamics 365. Businesses need to consider the long-term implications for scalability, access to new technologies, and overall competitive advantage. The choice is between maintaining a robust, familiar system and embracing a modern, cloud-native platform.
Next, we examine what Microsoft Dynamics GP looks like today.
What is Microsoft Dynamics GP Today?
Great Plains Software was rebranded first as Microsoft Great Plains and later as Microsoft Dynamics GP. This evolution reflects its integration into the Microsoft ecosystem. Today, Microsoft Dynamics GP remains a powerful on-premises accounting and business management solution, widely used by SMBs.
Microsoft Dynamics GP includes a comprehensive set of modules designed to cover various business functions. These modules typically encompass Financial Management, Distribution, Project Accounting, HR & Payroll, Manufacturing, and Business Intelligence — [Microsoft]. These integrated components allow businesses to manage core operations from a single system. Microsoft Dynamics GP modules are typically offered through Starter Pack and Extended Pack licensing models — [Microsoft]. The Starter Pack includes core functionalities, while the Extended Pack adds advanced features for specific industries or complex processes.
These modules serve a wide range of industries. Microsoft Dynamics GP is used in sectors like Manufacturing, Distribution & Logistics, Retail & E-commerce, Professional Services, Financial Services, Public Sector, and Software & Technology. Its flexibility has allowed it to adapt to diverse business needs over the years. Furthermore, GP integrates with modern analytics tools like Power BI, allowing users to visualize data and gain insights, though this integration requires specific setup.
Now that we understand GP’s current state, let’s examine why many companies continue to rely on it.
Why Do Companies Still Use Dynamics GP?
Reasons companies still use Microsoft Dynamics GP include its comprehensive financial management capabilities, the long-standing familiarity employees have with the system, its integration with other Microsoft tools like Power BI, and a strong, supportive partner ecosystem. For many SMBs, GP has been the backbone of their accounting and financial operations for years. The depth of its financial management features means it can handle complex accounting requirements that might be challenging to replicate or migrate easily.
Familiarity is a significant factor; ERP systems represent a substantial investment in training and process adoption. When a system works well and employees are proficient, there’s a strong inertia against changing. This comfort level reduces the perceived risk associated with adopting new software. Moreover, Microsoft Dynamics GP integrates well with other Microsoft business tools. Many organizations leverage Power BI for advanced reporting and analytics, connecting it to GP data to gain deeper business insights. This integration allows users to benefit from modern analytics without a full system migration.
The robust partner ecosystem surrounding Microsoft Dynamics GP also contributes to its longevity. Specialized Microsoft Partners provide ongoing support, customization, and development for GP, helping businesses maintain and enhance their systems. This active community ensures that solutions are available for specific challenges, reinforcing the decision to remain with GP. The Power Platform also offers avenues for extending GP’s functionality, allowing companies to build custom apps or automate workflows without leaving the GP environment for core functions.
Next, we compare Dynamics GP with Microsoft’s modern cloud ERP options.
How Does Dynamics 365 Compare to GP?
Microsoft continues to support GP with updates, but its innovation focus is on Dynamics 365 — [Microsoft]. This is a critical distinction for businesses planning for the future. Dynamics 365 offers a suite of cloud-based applications that are continuously updated with the latest technology and features.
The primary cloud ERP offerings from Microsoft that serve as successors to Dynamics GP are Dynamics 365 Business Central and Dynamics 365 Finance and Supply Chain Management. Dynamics 365 Business Central is aimed at small and mid-sized businesses — [Microsoft]. It provides a comprehensive business management solution that covers financials, sales, service, and operations, with built-in intelligence and extensibility through the Power Platform. Dynamics 365 Finance and Supply Chain Management is designed for larger enterprises with complex global operations and extensive needs in areas like advanced manufacturing, warehousing, and distribution — [Microsoft].
Here’s a table comparing Great Plains Software (Dynamics GP) with its Dynamics 365 counterparts:
| Feature | Microsoft Dynamics GP | Dynamics 365 Business Central | Dynamics 365 Finance and Supply Chain Management |
|---|---|---|---|
| Deployment | Primarily On-Premises | Cloud (SaaS) | Cloud (SaaS) |
| Target Audience | SMBs (historically) | Small to Mid-Sized Businesses (SMBs) | Medium to Large Enterprises |
| Innovation Focus | Limited (support & maintenance focused) | High (continuous cloud updates) | High (continuous cloud updates) |
| Integration | Integrates with other Microsoft tools (e.g., Power BI); can require custom connectors | Seamless integration with Microsoft 365 and Power Platform | Deep integration with Microsoft ecosystem |
| Scalability | Limited by infrastructure | High (cloud scalability) | Very High (designed for global scale) |
| Core Functionality | Strong financial management, distribution, project accounting | All-in-one ERP: financials, sales, purchasing, inventory, project management | Advanced financials, supply chain, manufacturing, warehousing, retail, HR |
| Licensing Model | Perpetual licenses + maintenance | Subscription-based (per user, per month) | Subscription-based (per user, per month) |
| Key Advantage | Familiarity, established processes for existing users | Modern cloud capabilities, ease of use for SMBs | Comprehensive modules for complex operations |
| Innovation Roadblock | Lack of continuous feature updates | May require adaptation for highly complex existing GP customizations | Different feature set than GP, learning curve |
Which Dynamics 365 version suits an SMB? Dynamics 365 Business Central is the most direct and suitable upgrade path for most SMBs currently using Dynamics GP. It offers the modern cloud benefits, scalability, and feature set designed for businesses of this size. Is Microsoft still investing in GP? Yes, it’s supported with crucial updates, but the significant investment and new feature development are concentrated on the Dynamics 365 platform.
With the comparison in mind, let’s explore the recommended migration strategy.
What Is the Staged Migration Approach?
Organizations often take a staged approach: keep GP for core accounting, extend with Power Platform, and plan migration to Dynamics 365 for scalability. This strategy is designed to mitigate the risks and disruption of a “big bang” migration. It allows businesses to gradually adopt new technologies while leveraging their existing investments.
The initial step involves continuing to use Microsoft Dynamics GP for its core financial management functions. This ensures business continuity while minimizing immediate change. Simultaneously, businesses can begin to leverage the Power Platform. This means using tools like Power Apps to build custom solutions for specific needs, Power Automate to streamline workflows, and Power BI for enhanced reporting beyond GP’s native capabilities. These tools can act as bridges, enhancing the current GP experience and preparing the organization for a cloud environment.
The transition to Dynamics 365 is then planned as a more deliberate phase. This could involve migrating specific modules or functionalities to Dynamics 365 Business Central. For example, a company might migrate its sales and CRM functions first, then gradually move other areas. This phased rollout allows the IT team and end-users to adapt to the new system incrementally. The typical timeline for migration can vary significantly, often spanning several months to over a year, depending on the complexity of the existing GP setup, the volume of data, the extent of customizations, and the desired scope of the Dynamics 365 implementation.
Finally, we provide decision criteria to help you choose.
When Should You Stay vs Migrate to D365?
Deciding whether to stay with Microsoft Dynamics GP or migrate to Dynamics 365 Business Central depends on several key factors related to your business strategy, technological needs, and growth plans. Microsoft Dynamics GP is used in industries including Manufacturing, Distribution & Logistics, Retail & E-commerce, Professional Services, Financial Services, Public Sector, and Software & Technology. Its established nature means it has proven its worth across these diverse sectors.
When should you stay with Dynamics GP? If your business operations are stable, your current GP system meets all your critical requirements, and you have minimal plans for expansion or significant technological adoption in the near future, staying might be viable. If your team has deep expertise and is highly productive with GP, and the cost and disruption of migration seem prohibitive relative to the perceived benefits, remaining on GP is a sensible choice. Additionally, if deep, complex customizations are fundamental to your operations and a direct mapping to Dynamics 365 is not immediately apparent or achievable without significant rework, staying could be preferred.
When should you migrate to Dynamics 365? You should consider migrating if you need enhanced scalability, better integration with modern cloud services (like Microsoft 365 and other Dynamics 365 apps), improved accessibility from anywhere, and access to continuous innovation and new features. If your business is growing and requires more advanced capabilities in areas like CRM, e-commerce, or supply chain management that GP doesn’t natively provide or that are difficult to integrate, Dynamics 365 Business Central is a strong contender. Also, if compliance with industry regulations or cybersecurity best practices dictates a move to a supported cloud platform, migration is recommended.
What factors should you consider? Analyze your current IT infrastructure, budget for migration and ongoing subscription costs, the availability of skilled resources for both implementation and support, and your long-term business objectives. Evaluate the total cost of ownership, including potential downtime, training, and customization costs. Understanding the risk appetite of your organization and the potential business benefits of cloud adoption is crucial.
Based on the decision criteria we just covered, here is our conclusion.
Conclusion: Making Your Decision
The choice between continuing with Microsoft Dynamics GP and migrating to Dynamics 365 Business Central involves a careful assessment of your business needs and strategic direction. While Dynamics GP remains a capable on-premises solution, Microsoft’s innovation and support focus are increasingly directed towards its cloud-based Dynamics 365 suite. For many SMBs, Dynamics 365 Business Central is the natural evolution, offering modern cloud capabilities, scalability, and enhanced integration with the broader Microsoft ecosystem.
The decision should be guided by an evaluation of your current system’s limitations, your growth aspirations, and your technology roadmap. A staged migration approach, potentially leveraging the Power Platform, can offer a pragmatic path to adopting Dynamics 365 while minimizing disruption. The final recommendation for GP users is to actively plan for the future, understanding that while GP is supported, Dynamics 365 represents the pathway to continued innovation and competitive advantage. The next step is to conduct a thorough analysis of your specific business requirements and consult with Microsoft Partners to determine the most suitable migration strategy.
FAQ
Q: What is the difference between Dynamics GP and Dynamics 365?
A: Dynamics GP is an on-premises ERP for SMBs, while Dynamics 365 is a cloud-based suite. Dynamics 365 Business Central targets SMBs, and Finance & Supply Chain Management serves larger enterprises.
Q: Is Microsoft discontinuing Dynamics GP?
A: No, Microsoft continues to support GP with updates, but its innovation focus is on Dynamics 365. GP is not being discontinued, but new features are limited.
Q: Can I migrate from Dynamics GP to Dynamics 365?
A: Yes, many organizations migrate via a staged approach: keep GP for accounting, extend with Power Platform, then plan full migration to Dynamics 365.
Q: Which Dynamics 365 product is best for an SMB currently using GP?
A: Dynamics 365 Business Central is designed for small and mid-sized businesses and is the natural upgrade path from Dynamics GP.
Q: How long does it take to migrate from GP to D365?
A: Timelines vary; a staged approach can take months to over a year depending on complexity, data volume, and customization needs.
