Upgrade AX to Dynamics365 F&O

When we first started working with companies on their Microsoft Dynamics AX to Dynamics 365 for Finance and Operations (D365FO) upgrade projects I expected that, like previous AX upgrades, the conversations to be straightforward and focused on typical upgrade questions surrounding:

  • Cost to upgrade
  • Time to upgrade
  • New functionality

ERP running in a public cloud was a change from earlier generations, but I expected most organizations today to be committed to a journey straight to the cloud. Surprisingly, many potential upgrade clients don’t see it that way. Working with companies on these projects has yielded some interesting results:

  • Expected – the major cost, functional and technology differences between D365 F&O in the cloud versus on-premise.
  • Unexpected – the number of companies choosing to upgrade their current version of AX to AX 2012 R3 with a plan to stabilize on that platform before making the D365 F&O move.
  • Unexpected – the costly, time consuming, research and development nature of the AX to D365 F&O upgrades.
  • Unexpected – the major discrepancy in Microsoft resources available to companies with over 150 users versus those with less.

The bottom line is that an AX upgrade to D365FO is not a linear process like past AX upgrades. There are multiple decisions, or forks in the road, that must be selected, and each of those comes with its own challenges and consequences.

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