Cloud ERP vs On Premise ERP: Benefits and ROI with Dynamics 365 Business Central

As a CPA with over two decades of experience helping businesses find the best-fit ERP solutions, I’ve seen firsthand how innovation transforms industries. And here’s the truth: the technology that got you here isn’t the technology that will take you forward. And the cloud ERP vs On-premise ERP is an important part of the discussion.

So, here’s the big question: Is it time to replace your legacy ERP system for the flexibility and power of a cloud-based solution like Dynamics 365 Business Central?

Dynamics GP has served you well, but times—and business needs—have changed. 

Think about it: Are you still relying on tools built for yesterday’s challenges? On-premise ERPs were dependable, but in today’s fast-paced, always-on world, they can’t keep up with the demands of remote work, real-time data, and business agility.

That’s where Dynamics 365 Business Central shines – It’s not just an upgrade; it’s a transformation.

With cloud-based ERP, you get a system that evolves with your business, automates tedious tasks, and keeps your team connected from anywhere. Imagine having the tools to scale seamlessly, adapt to change, and make smarter decisions in real time—it’s all possible with the cloud.

I get it—change can feel daunting, especially when you’ve relied on a system like Dynamics GP for years.

But here’s the good news: moving to Dynamics 365 Business Central doesn’t mean starting from scratch. It means migrating to a system that grows with you, giving your business the flexibility and efficiency it needs to thrive.

Still debating Dynamics GP vs. Business Central?

 Stick around—I will break it all down, so you can see why the future of ERP belongs in the cloud.

Let’s get your business where it needs to go.

Here’s the key differences in the on premise vs cloud ERP conversation.

Challenges of On-Premise ERP Systems

For years, on-premise ERP systems like Dynamics GP have been the backbone of countless businesses.

They’ve served them well, providing reliability and structure when it was needed most.

But as technology advances and business demands grow, these systems are starting to show their limitations—struggling to keep up with the speed, flexibility, and connectivity required to compete in today’s world.

Here are some of the significant challenges they present:

High Costs

On-premise ERP systems require substantial upfront investments in hardware and software, as well as ongoing maintenance expenses. These costs can strain budgets, particularly for small to mid-sized businesses.

Limited Scalability

As your business grows or pivots to new opportunities, on-prem systems often struggle to adapt. Scaling up typically involves costly hardware and complex reconfigurations, making growth feel like a challenge rather than an opportunity.

Time-Consuming Upgrades

On-premise ERP cloud migrations can be disruptive, costly, and time-intensive, leading many businesses to delay updates. Unfortunately, outdated systems can leave you vulnerable to inefficiencies and security risks.

Accessibility Issues

A major roadblock of hybrid and remote work environments is the lack of accessibility. On-prem systems tie employees to the office, reducing flexibility and restricting productivity for remote teams.

Benefits of Dynamics 365 Business Central vs. GP

Switching to a cloud-based ERP system like Microsoft Dynamics 365 Business Central doesn’t just address the challenges of on-premises systems—it transforms how your business operates. From reducing costs and streamlining processes to improving accessibility and collaboration, a cloud-based ERP provides the tools you need to stay agile, competitive, and prepared for the future.

Subscription-Based Pricing

Business Central eliminates the need for hefty upfront investments. As a subscription model, it reduces costs while automatically providing updates to ensure you always have access to the latest features.

Anywhere Accessibility

With a secure internet connection, Business Central supports remote teams and hybrid work environments, keeping your entire team connected no matter where they are.

Seamless Microsoft Integrations

Business Central integrates effortlessly with Microsoft tools like Power BI, Excel, and Teams, making collaboration and data analysis smoother and more effective.

Advanced Security Features

Few things are more frustrating than spending time and money on security measures, only to realize your system is still vulnerable to modern threats.

On-premise systems often struggle to keep up with constantly changing security challenges, leaving businesses exposed to risks they can’t afford.

With Dynamics 365 Business Central, you get advanced security features built right in—protecting your sensitive business data with ironclad compliance tools and automatic updates that keep you one step ahead of cyber threats.

On-premise systems often struggle to keep up with these evolving challenges. For more on this, check out our blog, Why Your On-Prem ERP Places Your Business at Risk.

Operational Efficiency Gains

A cloud ERP system like Business Central is all about making life easier. It streamlines your processes, cuts down on manual work, and helps you make faster, smarter decisions.

On-premise systems can slow you down with inefficiencies, but Business Central keeps things running smoothly, no matter how complex your business gets.

Here’s how:

Quick Deployment

The on-premise setup is like waiting in line at the DMV – it’s a character-building experience, to put it kindly. But cloud ERP solutions? They’re faster and more efficient to implement. Less character-building; more business-building.

A study by Nucleus Research indicates that cloud technology deployments deliver over 4 times the ROI of on-premise deployments and allow organizations to recover their initial investments 2.5 times faster.

Reduced IT Dependency

By eliminating the need for extensive IT infrastructure and maintenance, your team can focus on strategic growth initiatives instead of troubleshooting outdated systems.

Streamlined Workflows

Business Central automates processes and connects departments, enabling smoother collaboration and reducing manual errors.

Real-Time Insights

With up-to-date, accurate data at your fingertips, you can make informed decisions quickly, staying agile in a competitive market.

Comparing the Upgrade Processes

If the thought of upgrading your ERP system makes you break out in a cold sweat, you’re not alone. On-premise upgrades can be a headache, but with cloud ERP, the process is surprisingly simple. Let’s break it down.

On-Premise ERP Upgrades: Upgrading an on-premise ERP system like Dynamics GP can feel like a major renovation—expensive, time-consuming, and disruptive to daily operations.

Cloud ERP Updates: In contrast, cloud ERP updates are automatic, seamless, and included in your subscription. This eliminates the headaches of managing upgrades and ensures you’re always working with the latest tools and features.

Future-Proofing with Cloud ERP

A modern cloud ERP system like Dynamics 365 Business Central isn’t just about meeting today’s needs—it’s about preparing for tomorrow.

By offering scalability, advanced features like AI-powered tools, and seamless updates, Business Central ensures your business is always equipped to adapt to changing demands, embrace innovation, and stay competitive in an ever-evolving marketplace.

It’s a solution built not just for where your business is today, but for where it’s headed next.

Scalability: Whether your business is growing rapidly or adapting to new market demands, Business Central scales with you, so you’re never limited by your ERP system.

Cutting-Edge Features: With AI-powered tools and automation, Business Central drives innovation and efficiency, enabling you to stay ahead of the competition.

Competitive Edge: By leveraging the latest technology, you position your business to thrive in an evolving market, ensuring long-term success.

The Next “Right Choice”

If you’ve been relying on Dynamics GP, you made the right choice for its time. But technology—and business—has progressed. Now is the time to consider the next “right choice.”

Microsoft Dynamics 365 Business Central offers a modern, cloud-based solution that enhances operational efficiency, reduces costs, and positions your business for growth.

Ready to explore how Business Central can benefit your business? Contact DLD Business Solutions today to start the conversation. Your success and satisfaction are our utmost priorities, and we go above and beyond to deliver the highest quality support tailored to your specific needs.

Still wondering if it’s time to move from Dynamics GP to Business Central? Join our upcoming webinar, Navigating the Future: Microsoft Dynamics GP vs. Dynamics 365 Business Central, to explore the rich functionality of Business Central and why it might be the right move for your business.

About the Author

Dennis L Day, CPA, is the President of DLD Business Solutions. He focuses on empowering businesses with intelligent, efficient solutions that drive success.

For over 23 years, we’ve been a trusted partner, delivering expert implementation, migration, and support services for Microsoft Dynamics ERP systems.

Whether you’re optimizing operations, boosting sales, or gaining valuable financial and operational insights, we’ve got you covered.

What sets us apart? We listen.

You can find Dennis on LinkedIn