Dynamics GP to Business Central migration cost factors, and how to manage them more efficiently

Since Microsoft will stop supporting and updating Dynamics GP by December 31, 2029, many GP customers today are migrating to other ERP products. Considering that Dynamics GP has been popular among small-to-mid-sized businesses, transitioning to Dynamics 365 Business Central, a cloud-based ERP system designed specifically for SMBs, has become one of the most popular migration destinations.

If you also plan to take this path, you need a clear understanding of the cost factors involved in Dynamics GP to Business Central migration, or otherwise you risk failing to anticipate all forthcoming financial expenses, which can lead to budget overruns, project delays, and other issues negatively impacting migration project ROI.

Below, we review major cost factors of Dynamics GP to Business Central migration, along with practical methods to reduce the project’s price.

What cost factors impact the Dynamics GP to Business Central migration budget

The total cost of migrating from GP to Business Central varies from $25,000 to over $180,000 depending on the project scope and a combination of the following factors:

User licensing

Because Dynamics GP and Dynamics 365 Business Central are separate products with distinct licensing models, moving from GP to Business Central requires purchasing new user licenses. This transition can be costly for companies with large employee counts and companies dual-running both systems during the migration.

Data migration

Over the years, companies accumulate a significant amount of business data in their GP environments. To move it to the new environment, migration teams have to spend hours on data inventory, data mapping, and data transfer, which inevitably increases the total project budget. If the data has not been properly cleaned beforehand, the company may also need additional costly cleanups after the migration.

Software customization

Because GP and Business Central are based on different software architectures, existing customizations cannot be simply transferred to the new environment. Instead, migration teams have to redesign and rebuild customizations from scratch, which can take many work hours, consequently extending the total migration budget.

Software integration

Like any other ERP tool, Business Central should be integrated with other business systems, including CRM, ecommerce, or BI software, to function properly. However, legacy integrations developed for GP cannot simply be moved to Business Central as-is, so rebuilding these legacy integrations also requires significant effort and additional costs.

User training

GP and Business Central differ significantly in functionality, user interfaces, and navigation capabilities, making user adoption issues almost inevitable without proper training and onboarding. Nonetheless, designing and delivering a comprehensive Business Central training program for different user groups can involve substantial costs, especially if a company has a large end-user base.

How to optimize Dynamics GP to Business Central migration costs

Apply the Bridge to the Cloud 3 Promotion

Using the Bridge to the Cloud 3 promotion, a specialized Microsoft program designed to help companies transition from Dynamics GP to Business Central and running from January 1, 2026, to December 31, 2027, is an easy way to reduce software licensing costs. Companies that meet the program’s criteria (such as holding a perpetual GP license purchased before September 1, 2024, and maintaining an active Enhancement Plan) are eligible for a 30% discount off the standard commercial price for Business Central subscriptions over a three-year term.

Prioritize pre-migration data cleansing

As mentioned before, moving legacy data to Business Central can create a compounding cost effect for the entire project. Therefore, to minimize data migration expenses, companies need to prepare the data beforehand. Specifically, they should systematically assess data accuracy, consistency, and completeness and, depending on the issues identified, implement relevant measures (data standardization, data deduplication, etc.) to address them proactively.

Replace custom code with pre-built functionalities

Experience shows that many legacy GP customizations can be eliminated and replaced with native BC features or off-the-shelf apps from Microsoft AppSource. Therefore, companies need to categorize all existing customizations into those that can be replaced and those that cannot, rebuilding only mission-critical customizations.

Establish a peer-to-peer learning program

As mentioned earlier, delivering formal training programs to every end user can be too expensive, especially in large companies with extensive employee headcounts. Implementing peer- or champion-led training programs enabling end-users to continuously teach each other can help a company accelerate user adoption while minimizing the need for costly formal training.

Partner with experienced migration experts

Hiring a migration partner is also an effective way to manage costs associated with the transition, despite it requiring an upfront investment. Backed by hands-on experience in past migrations and knowledge of their common pitfalls, a partner can help scope and plan the project more accurately, minimizing various risks (scope creep, incorrect license selection, etc.) that might cause overspending.

A partner can also help the company migrating to Business Central implement tailored cost-optimization practices, including those that were listed in this article. For instance, an experienced partner can determine whether a company qualifies for the BTC3 program and help prepare for enrollment. Experts can assist with identifying which data in GP should be transferred to the new system and preparing it, thereby preventing costly post-migration cleanups. Furthermore, a partner can help establish an internal champion network for a self-sustaining corporate learning model where employees teach one another.

How to choose the right Dynamics GP to Business Central migration partner

Evaluating and comparing all prospective partners against multiple criteria is key to selecting the best partner:

• Partner status

Ensure that the Dynamics services provider holds relevant, up-to-date Microsoft certifications, such as Microsoft Solutions Partner designations, since they guarantee that the company meets baseline Microsoft project delivery standards.

• Work experience and industry expertise

Verify that the partner has direct, practical experience with migrating from Dynamics GP to Business Central for businesses in your specific industry.

• Service scope

Among other things, clarify whether the partner's services cover all the activities the company needs help with, whether its data migration, licensing, staff training, and so on.

• Talent pool

Last but not least, check whether the migration partner has a sufficient number of certified functional consultants, technical architects, software developers, and other specialists on their team to execute the project effectively, even if its scope were to expand over time.

Final thoughts

The end of official support for Dynamics GP is closer than it may seem, so if you're looking to migrate to Business Central, now is the time to plan the project. Identifying the specific cost drivers of the migration early on can help you better prepare for the transition and therefore maximize its future ROI. This article, highlighting common migration cost factors and providing recommendations on how to manage them, can help you in this regard.