The Risks of Not Implementing Transition from Dynamics AX to Dynamics 365

Monday December 4, 2023
4 min read

Microsoft Dynamics AX 2012 R3, the predecessor to Microsoft Dynamics 365, originally released in 1998 as Axapta, has now been completely discontinued. Although its mainstream support ended in 2021 and extended support concluded this year, marketing firms such as Enlyft and Infoclutch still report thousands of organizations relying on this software. XPLUS, a Microsoft Dynamics 365 implementation partner, cautions companies about the risks of delaying or forgoing the transition to the latest software. Find below  a comprehensive list of the associated risks.


Lack of support

One of the major implications of continuing working with Microsoft Dynamics AX is the absence of producer's support. Not only does it mean that the system's functionality is no longer updated but also that there are no bug fixes available for the product. Microsoft is no longer delivering new system adjustments to changing legal, database and platform requirements. This can gradually make maintaining Microsoft Dynamics AX more challenging.  

Partner and in-house support issues

Organizations still using Microsoft Dynamics AX may encounter challenges when seeking competent professionals for in-house maintenance and support of this software. As the system has reached its end-of-life status, many IT specialists are less inclined to invest their time in studying this product. Instead, they often prioritize acquiring the necessary skills to work with Microsoft Dynamics 365. It will become increasingly challenging to find competent implementation partners like XPLUS, who provide comprehensive support for migrating to the new software suite.

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Inadequate security and compliance

When software lacks producer support, it faces significant security risks. Without regular updates and patches from the producer, the software becomes vulnerable to emerging threats. Hackers can exploit unpatched security flaws, leading to potential data breaches and system compromises. This vulnerability not only jeopardizes sensitive information but also can disrupt business operations, leading to loss of customer trust and potential legal repercussions. Consequently, software security becomes a major concern for organizations using unsupported software. Furthermore, these vulnerabilities pose a challenge in maintaining compliance with data protection regulations.

Limited functionality and competitive disadvantage

Microsoft Dynamics 365 boasts a range of powerful features, including improved mobile access, advanced analytics with AI-driven insights, and seamless integration with the Internet of Things (IoT). These capabilities, which give organizations a competitive edge, are unavailable to Microsoft Dynamics AX users.  

Insufficient scalability and flexibility

The old Microsoft Dynamics AX is now unable to provide help with expanding business activities or the flexible reduction of operations. Being a cloud-based Software as a Service (SaaS) solution, Microsoft Dynamics 365 allows deployments across various devices and networks globally. This flexibility enables teams to build solutions that cater to diverse hardware and network conditions. Microsoft, maintaining the infrastructure, reduces setup costs and ongoing maintenance responsibilities for clients. For example, Microsoft Dynamics 365 simplifies the process of adding or removing users and defining their privileges for interactions with the software. Additionally, organizations have the flexibility to choose which modules of the Microsoft Dynamics 365 ERP and CRM suite they want to use at any given time.  

Challenges with integration

The older the version of Microsoft Dynamics AX, the more difficult it becomes to integrate it with other applications and services. In contrast, Microsoft Dynamics 365 supports various integration patterns such as Power Platform integration, Open Data Protocol (OData), Batch Data API, Custom Service, external web service consumption, and Excel integration. These patterns provide flexible options for integrating Dynamics 365 with other services and applications.  

Failing customer expectations

As more companies shift to Microsoft Dynamics 365, they discover improved collaboration with organizations using the same software, enhancing compatibility. Conversely, compatibility issues can hinder business relationships and result in missed business opportunities.  

Increased total cost of ownership

The compliance and security issues mentioned earlier, coupled with the need for enhancements to compensate for the insufficient functionality of Microsoft Dynamics AX, create a demand for regular investments. Although transitioning to Microsoft Dynamics 365 may involve substantial upfront payments, the total cost of ownership (TCO) of Microsoft Dynamics AX can ultimately exceed those expenses.  

Bottom line: Does your company need Microsoft Dynamics 365?

Implementing key business systems such as ERP or CRM requires considerable effort and investment. Thus, companies who've already faced this task might be reluctant to upgrade to more advanced solutions like Microsoft Dynamics 365. Yet, this upgrade is often essential for better security and compliance with data protection laws. It also provides innovative features that boost market competitiveness and improve dealings with partners and customers. Transitioning from Microsoft Dynamics AX to Dynamics 365 can greatly increase organizational agility and lower overall costs.

Want to know how Microsoft Dynamics 365 can transform your business processes?


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