Dynamics GP vs. Dynamics 365 Business Central

The Microsoft ecosystem includes an extensive selection of dynamic software solutions. From the timeless Microsoft Office suite to robust analytics technologies like Power BI, you can support all your core business processes with Microsoft products. Microsoft’s most versatile technologies are its customer relationship management (CRM) and enterprise resource planning (ERP) platforms, Dynamics GP and Dynamics 365 Business Central. In this Dynamics GP vs. Dynamics 365 Business Central head-to-head, we’ll compare these platforms so you can choose the option that makes the most sense for your business. 

What Is Dynamics GP?

Dynamics GP has long been a staple of the ERP ecosystem. It’s a comprehensive, on-premise business management solution that has been helping small-to-mid-sized businesses manage their finances, inventory, customer service processes, and operations for decades. 

Despite the rise of cloud technology, Dynamics GP remains a viable ERP solution for small-to-mid-sized businesses. While cloud solutions offer better scalability, the vast network of Dynamics GP add-ons provides your business with access to the latest tools and functionalities. 

What Is Dynamics 365 Business Central?

Dynamics 365 Business Central is Microsoft’s latest ERP solution. It relies on cloud hosting to offer a seamless integration and a frictionless experience. It’s an all-in-one tool that is easy to adopt and maintain.

The primary difference between Dynamics 365 Business Central and Dynamics GP is the deployment method. As a cloud-based solution, Business Central offers better scalability and more robust user interfaces. Think of it as a reimagining of Dynamics GP for the modern age. 

Is the Cloud the Only Option?

With all this talk about cloud transformations, it can feel like on-premise platforms are the only choice. However, that’s simply untrue. 

While Business Central is primarily cloud-based, Microsoft understands that not every business can leap into the cloud. That’s why the company offers on-premises and hybrid deployments as well. This flexibility allows you to choose the approach that makes the most sense for your business.

Dynamics GP is an on-premise-only solution, but don’t view that as a limitation. With the support of an independent software vendor (ISV) and its library of add-ons, you can enjoy robust functionality while reaping the benefits of an on-premise ERP. 

Dynamics 365 Business Central vs. Dynamics GP

When comparing Dynamics GP vs. Dynamics 365, it’s essential to consider a wide range of variables. You’ll want to account for everything from costs and features to the time it takes to deploy the platform. 

That said, there is no single best solution in the Dynamics GP vs. Dynamics 365 debate. Each ERP has unique strengths that make it a viable solution for your business. To help you make an informed decision, we have examined how the two platforms stack up in several vital areas.

Users

Who is the platform designed for? Dynamics GP has traditionally served a strong user base that values the control and familiarity of an on-premise system. It’s ideal for those not ready to move their data into the cloud. Dynamics 365 Business Central is aimed at users looking for a modern, integrated, and cloud-based solution to facilitate remote access and real-time insights. 

Both tools can accommodate small-to-mid-sized businesses in multiple industries. If you operate in field service, manufacturing, supply chain management, warehousing, or retail, either platform can be a good fit. 

Features

Dynamics GP is a feature-rich platform offering extensive functionalities that have been refined over the years. It has strong financial management and human resources capabilities, making it a solid choice if you have complex accounting needs.

Dynamics 365 Business Central offers a more streamlined user experience with modern features like AI and machine learning capabilities. You can use these tools to predict future trends and automate tasks.

Both platforms are supported by ISV add-ons, which are third-party apps designed to improve their functionality. Cavallo is an ISV that specializes in helping businesses get more out of Dynamics GP and Business Central by providing robust add-on applications. Check out our GP and BC solutions to learn more. 

Time to Deploy

Dynamics GP can take longer to deploy due to its on-premises nature. The setup is more involved, requiring you to purchase and set up hardware to support GP. That said, going with an on-premise solution gives you optimal control over the deployment and your data.

Dynamics 365 Business Central benefits from a quicker deployment thanks to its cloud-based setup. With the right partner in your corner, you can have it up and running in no time. 

Costs

Due to the expenses associated with purchasing and installing hardware and maintenance, you’ll incur higher upfront costs with Dynamics GP. You’ll also have to pay an annual license fee.

Dynamics 365 Business Central operates on a subscription model, which can be more cost-effective over time. You’ll avoid upfront hardware costs, and updates are included in your subscription. If you need to keep costs in check, the cloud-based approach is the better choice. 

Integrations

Dynamics GP has a wide range of third-party integrations, but integrating modern cloud services can be challenging. If you go with Dynamics GP, it’s often easier to implement third-party apps on-premise as opposed to via the cloud. 

Dynamics 365 Business Central is built for integration. It integrates with other Microsoft cloud services like Office 365 and Power BI, making for a more seamless experience. Since BC is cloud-based, it’s also easier to integrate third-party apps. 

Team Friendliness

Dynamics GP and Dynamics 365 Business Central are both known for their user-friendly natures. If your team is already familiar with Microsoft products, getting to know these tools will be easy. 

However, Dynamics GP will take a bit longer to learn because it has so many functionalities and tools. BC has a more modern interface, which can reduce the learning curve and increase team adoption rates. 

Reports and Analytics

Both Dynamics GP and Dynamics 365 Business Central offer real-time reporting through Management Reporter. This module offers a chart of accounts tools, as well as other financial management solutions. 

You can pair the platform with Project Accounting, another module available in Dynamics GP and Business Central. Doing so provides unmatched visibility into important business processes so you can make informed decisions. 

Dynamics 365 Business Central has a slight edge here, as it offers real-time dashboards and insights that are easier to customize. But GP is no slacker and boasts highly customizable reporting tools, too. 

Add-On Products

As the older system, Dynamics GP has a mature market of ISV add-on products available. If the solution doesn’t have a native module or feature, you are almost guaranteed to find what you need in the independent software vendor marketplace. 

Dynamics 365 Business Central has a rapidly growing ecosystem of add-on applications available through the Microsoft AppSource marketplace. While there aren’t as many add-ons available for BC, this will likely change in the next few years.

Final Thoughts

There is no clear winner in the Dynamics GP vs. Dynamics 365 debate. Both platforms are capable, feature-laden, and powerful enough to meet the needs of your growing business. Ultimately, your decision comes down to preferences regarding cloud-based or on-premise deployment. 

Regardless of which platform you choose, you’ll have the opportunity to maximize your return on investment by leveraging powerful ISV add-ons from Cavallo. For the last 20 years, we’ve developed a powerful suite of solutions designed for both Dynamics GP and Dynamics 365 Business Central, designed to supercharge every step of the order management cycle. Connect with our team to learn more.