Does Cloud Pricing Make Your Company Less Valuable?
The sticker shock and lack of tools available to develop accurate AX to D365 upgrade costs have been the biggest takeaways for me regarding pricing.
The upgrade “Price” podcast, featuring Kenny Mullican, added significantly to my understanding of the mindset of a customer evaluating such a significant project.
As the CIO of Paragon Films in Tulsa Oklahoma, Kenny has a significant number of technical, functional and financial considerations to juggle as he plans out his company’s upgrade path. His thoughts on the subject during the pricing podcast are well worth the listen. As he recently recapped:
- There is not a lot of information about what it takes to upgrade from AX 2012 to D365. There seem to be plenty of companies implementing D365, but harder to find success stories of upgrades.
- Hard to judge what it will cost. Estimates are all over the board. Could it be more than the original implementation?
- Verdict still out on viability of total cloud solution for manufacturing, yet Microsoft seems to be pushing everyone that way – not necessarily making it easy or desirable to do on-premise or a hybrid approach.
- D365 is still playing catch-up on some features that were already there in AX 2012 but missing in D365.
As a non-finance, non-accounting guy, my favorite takeaway was his discussion on how OPEX versus CAPEX costs can have dramatic impacts on the upgrade decision making process.
Thank you, Kenny, for the great input!
Peter Joeckel is the President and Founder of TurnOnDynamics, a boutique consultancy specializing in providing senior consulting resources for Microsoft Dynamics AX/D365 clients and projects.