Why Are Users Dragging Their Heels in Upgrading to Microsoft Dynamics AX 2009?

At Asi, we have been fortunate to have worked with many users to implement Microsoft Dynamics AX (formerly Microsoft Business Solutions Axapta).  Yet at the recently concluded AXUG User Summit, it seemed as if many customers are delaying an upgrade to AX 2009-despite the fact that mainstream support is due to end for Microsoft Dynamics AX version 3.0 in January of 2009.

Any number of reasons seem to be involved, including the current economic slowdown, confusion over the business benefits of AX 2009, a need for new hardware and operating/database requirements, and optimism that Microsoft will extend mainstream support for older versions, among others.  Here are four that I believe are most important, and considerations  for users to assess in their decision making on whether and when to upgrade.

1. Economic Challenges and Organizational Viability

We all know what is currently happening on "Wall Street" and the spill-over affect to "Main Street", particularly sectors such as industrial equipment, automobiles, building suppliers, aerospace-the list goes on and on.  When a decision needs to be made between payroll and keeping the lights on, or upgrading the ERP system, we all know what the choice will be.  This probably explains the relationship between fast-growing companies and their likelihood of upgrading. Growth companies require flexibility and scalability, which are core attributes of Microsoft Dynamics AX.  It is not uncommon to see 200%, or even 300% year-over-year growth in many of the consumer package goods (CPG) segments served by ASi, such as "soft goods; apparel" and "hard goods; action sport equipment".  In our experience, these fast-growing companies often understand that utilizing the latest software version gains them some competitive advantage and, ultimately, helps them ride the growth curve longer.  Clearly, ...