Since Microsoft officially announced in 2024 that it would be sunsetting Dynamics GP, there have been a few key dates and deadlines released. One kinda big one is quickly approaching. Come April 1, 2025, Microsoft will no longer sell new deployments of GP on Perpetual Licensing. In this post we’ll explain what this means and what your options are.
Learn more about Microsoft Dynamics GP End of Life & Important Dates »
What is Perpetual Licensing for Dynamics GP?
Perpetual Licensing is regular old software licensing where the user makes a one-time purchase of a version of software like Dynamics GP 2013. They can then use that version forever, in theory. In this case, maintenance, updates and new versions have to be purchased to maintain the system.
Perpetual licensing for Dynamics GP can best be understood as compared to Modern Lifecycle Subscription licensing. This newer licensing model is just what it sounds like… subscription based software licensing, aka, how all SaaS solutions work. Essentially you pay recurring user fees and updates are included… this is how GP 2018+ licenses are sold.
No New Dynamics GP Perpetual Licensing Deployments Starting April 1, 2025
This only affects new GP deployments. It means anyone out there still using perpetual licenses who need multiple GP environments won’t be able to add new instances on their current model, starting Q2 2025. It also means Microsoft Partners out there won’t be able to sell new customers on Perpetual Licenses.
What are your Options if You’re Still on GP Perpetual Licensing?
- Do nothing: There are some folks out there who know they won’t need any new deployments and they might be able to just ride their Great Plains solution out for the next few years while they weigh their options.
- License Your New Deployments Now: If you have the capital and you find this to be your best option, it is an option.
- Update to Microsoft Dynamics GP 18.x: This update would move you to Modern LIfecycle subscription licensing. However it’s important to note that there will be no new GP customer subscription licensing allowed starting next year. There will be no new customer sales of any kind of GP licenses starting April 1, 2026. That means, you have to get on the Modern Lifecycle before that date if you are going to do it. This will allow you to add users to your existing deployment for the time being, as support for GP 18.x extends to 2031.
- Migrate to D365 Business Central: This is a pretty incentivized option, however it would be a brand new ERP implementation, not a regular version update. The Microsoft AIM Program "Accelerate, Innovate, Move," is available to help Dynamics GP users migrate their on-premises software to the cloud, with tailored pathways, guidance, assessments and even potential funding. Learn more about the AIM program
- Migrate to Some other ERP: There are lots of fish in the ERP sea. Choosing one is hard and if you want to take this path, it’s best to consult your Microsoft Partner.
Best Option? It depends. If you haven’t already started down the path to implementing Business Central or another solution, it would be pretty impossible for most folks to complete an implementation by the April 1 deadline. In this case upgrading to a Modern Lifecycle version of GP will certainly buy you some time.
Conclusion
If you are on an old version of Microsoft Dynamics GP, you have some big considerations to mull over. But April 1 will be here before you know it, so mull quickly.
Our best pro tip… Talk to your Microsoft Partner. They are often experts in multiple ERP solutions and they can guide you through this next phase of your GP journey.
