Is Microsoft Dynamics GP Sunsetting? Yes…And No

Published: March 25, 2024

By Lagom Accounting and Software

Over the last several months, we’ve been having conversation after conversation with clients who are confused on what’s happening with Microsoft Dynamics GP, how it impacts them, what their timeline is, etc.

And we get it – it can be incredibly hard to sift through all the mailings, posts, emails, and articles to get to the facts. So to help with that, we’ve got you covered.

Licenses and Purchases:

  • Microsoft will stop selling new GP perpetual licenses effective April 1, 2025. That means new instances of GP and does not mean user licenses.
  • Microsoft will stop selling new GP subscription licenses effective April 1, 2026. That means new instances of GP and does not mean user licenses.
  • If you are an existing GP customer, you can continue to purchase user licenses and new modules beyond that April 1, 2026 deadline.
  • Support plan costs will be changing as follows:
    • Enhancement plan rates increase from 17% to 18%

    • Advantage plan rates increase from 19% to 20%

Development:

  • Microsoft has announced that the release of GP 18.5 (October 2022) would be the last release with major features updates.
  • Microsoft has said that they will continue to provide regulatory and tax and security, and possibly minor feature updates to supported versions of GP (see GP Lifecycle below).

GP Life Cycle

  • Versions of GP prior to 2019 (GP 2018 R2 and older) are under the Fixed Life Cycle meaning they have 5 years of mainstream support and then five additional years of extended support.

–Note that mainstream support for GP 2018 R2 ended on 1/10/2023 with extended support ending 1/11/2028.

  • GP Versions newer than 2018 R2 are on what is referred to as the Modern Life Cycle which does not have that finite cut off of the fixed life cycle.
  •  To remain current and on a “supported” version of GP under the modern life cycle, clients should install at least one of the three all-inclusive Dynamics GP updates that are released each year – typically in June, October, and December annually.

 

That’s super interesting and all, but what’s the bottom line? Fair question – here’s the bottom line…

  • If you’re happy with the system – don’t rush. Change for the sake of change rarely, if ever, works well. You can absolutely continue to work on it for the foreseeable future and give your team time to determine what is truly the right next move for you.
  • If you DO plan on staying with GP for the foreseeable future, installing updates regularly – at least annually – is a critical step in staying up to date and on a supported version of GP.
  • If you DO plan on staying with GP, be sure to check in with your partner to make sure you are utilizing the software to your best advantage and make sure you are making the system work for you.
  • If you’re not currently on GP, but you are exploring new ERP options, we can help you determine if GP is the right solution or if you’d be better served with another ERP like Microsoft Business Central.

Lagom is ready to assist our clients with excellence regardless of where they are in their GP experience. Contact us today to schedule a free discovery call

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