With the Spring 2017 release of Microsoft Dynamics 365 for Operations expected to launch on 1st July, Microsoft is expected to stop offering Dynamics AX 2012 R3 to new customers on that same date. With the corporation’s release of its on-premise version of Dynamics 365 for Operations, (Microsoft Dynamics for Operations Local Business Data), Microsoft is now looking to move away from its legacy products – instead offering D365 for Operations, which fulfils the same functionality and more.

An early shock

For many, this news comes as somewhat of a surprise. Businesses had expected that Microsoft would end licensing of Dynamics AX 2012 as they rolled out D365, however, most expected it to be later in the year – perhaps in the Autumn, rather than early summer. This blog by Ellipse Solutions explains in great length what this might mean for you, but to summarise, it means that existing customers will still be able to purchase AX 2012, albeit at a new price. All new customers will only have access to the new Microsoft Dynamics for Operations Local Business Data. They have also added a new ‘middle-tier’ user license to Dynamics 365 called “Activity”, which is similar enough to their old AX 2012 Functional license in terms of what it provides in that it delivers. Its aim is to fill a current gap in the Dynamics 365 for Operations by offering a license for users who need to do a limited number of activities beyond the limits of the current Team Member license.

All good things…

Alas, as the Ellipse blog suggests: ‘all good things must come to an end’, and so the much loved AX 2012 R3 will come to pass. While this move might be seen as a positive one by many (all functionality in Dynamics AX 2012 has been added into D365 for Operations!), others have felt that the move is too premature:

“If we can't sell AX 2012 from 1 July, and all the previous partner code has to be refactored and tested across reports, workflows, interfaces, isv modules then it is going to be difficult to sell that ip to a new customer, until all that code migration is done and can be demonstrated e.g. a localised payroll, or a major vertical like construction, jewellery, utility billing etc.”

Here at Conspicuous we are expecting a significant increase in new project activity in the 4th quarter of 2017. This new directive from Microsoft, in addition to increased functionality and project experience with D365O will allow our partners to sell and deliver Dynamics with confidence. We are hopeful that Dynamics 365 becomes the de facto solution of choice across most industries looking to implement a new business solution. As a result, we are expecting an increase in demand for contractor resource as the year progresses.