What Does a Dynamics GP Upgrade Cost? Effort, Downtime and Price Drivers

What Does a Dynamics GP Upgrade Cost? Effort, Downtime and Price Drivers

When a finance director asks us what a Dynamics GP upgrade will cost, our first reply is a question in return: which version are you on, and what has been added to it over the years? Two companies with the same number of users can receive quotes that differ by a factor of five, and both quotes can be fair.

This article explains the parts of the bill, the work on both sides, the hours your users will be locked out, and the factors that move the price, so that you can judge any quote for Microsoft Dynamics GP.

The Short Answer: What Most Companies Pay

Managers usually want a number first, so we start with figures that Dynamics GP partners have made public. One long-established partner in the United States reports that a standard upgrade has cost its clients between $2,200 and $3,700 on average, and much more for complicated systems. Another partner measures the work in time and gives a range from 30 hours to more than 100 hours.

Hours are more useful for your budget, because rates differ from partner to partner. At an example rate of $150 per hour, used here only to show the arithmetic, 30 hours comes to $4,500 and 100 hours comes to $15,000. Please treat these figures as orientation and not as an offer.

What the Price Includes, and What It Does Not

A common misunderstanding is that the upgrade price pays for the new software. In most cases it does not.

  • The software: While your enhancement plan or subscription is active, new versions are part of your Dynamics GP license. A lapsed plan has to be brought up to date first, and that payment can be larger than the service fee.
  • Partner services: This is the main part of the quote: planning, the test upgrade, corrections, the live upgrade and early support.
  • Third-party products: Add-ons from other vendors have their own maintenance contracts and sometimes their own upgrade fees.
  • Infrastructure: A new server or a newer SQL Server edition is charged separately.
  • Your own staff time: Nobody invoices you for it, but user testing is real effort.

Seven Factors That Decide the Price

When our consultants estimate a Dynamics GP upgrade, they are analyzing the same seven points every time.

  1. Version gap: A recent 18.x build can normally reach the newest release in one step. Dynamics GP 2013 or 2015 has to pass through intermediate versions, and each stop needs its own installation, conversion and check.
  2. Number of company databases: Every company is a separate database that must be converted and verified, which adds hours in testing.
  3. Data size: A database of a few gigabytes converts quickly, while a very large one can run for many hours.
  4. Customizations and modified reports: Each customization has to be reviewed, and some must be rebuilt. A simple change takes an hour or two, whereas old custom code can take days.
  5. Third-party add-ons: Each product must be obtained in a build that matches the new GP version, then installed and tested.
  6. Integrations: Links to a web shop, a payroll provider, a bank or a CRM system can stop working after a small table change, so they need their own test cases.
  7. Servers: Older servers often do not meet the system requirements published by Microsoft, and moving to a new server turns one project into two.

How Much Work Is Involved on Each Side

An upgrade is shared work, and an organization that plans only for the partner’s hours will be surprised.

The partner carries out the technical tasks: reviewing the system, running the test upgrade, correcting what fails, repeating the process on the live system and supporting users afterward. Your own team provides access and backups, and key users from finance, purchasing and sales test their daily tasks in the upgraded copy. Published guidance from Dynamics GP partners puts this testing at one to three weeks of elapsed time.

In our experience, companies that take testing seriously save the most money. A fault found in the test system costs an hour, while the same fault found after go-live can stop invoicing for a day.

Downtime: How Long Will Users Be Locked Out?

Downtime is the period between the final backup of the old system and the moment users sign in to the new one. Its length depends mainly on database size, the number of companies and the speed of the servers, and one Dynamics GP partner describes the conversion as taking anything from a few hours to several days.

The test upgrade therefore has a second purpose: it measures the conversion time with your real data. Most companies then schedule the live upgrade from Friday evening, so that normal work can restart on Monday morning. If the measured time does not fit into a weekend, you can use a public holiday, archive old history beforehand, or move to faster hardware first.

We emphasize one rule to every client: never choose a weekend just before payroll, month end or year end.

Three Example Projects

The table below is a simplified way of summarizing how the factors combine. The hour ranges are illustrations based on the public figures quoted earlier, and they are not a Nevas price list.

Factor Small and Current Typical Mid-Sized Old and Complex
Starting version Recent 18.x build Early 18.x or GP 2018 GP 2013 to GP 2016
Company databases 1 or 2 3 to 8 More than 10
Customizations and add-ons None or very few Some modified reports, two or three add-ons Custom code, several add-ons and integrations
Server change No Possibly Yes
Partner effort Around 30 to 40 hours Around 50 to 80 hours 100 hours or more
User testing About one week About two weeks Three weeks or more
Likely downtime Part of a weekend One weekend A long weekend, planned carefully

Most Dynamics GP customers we speak with recognize their own company in the middle column, with one or two features from the right-hand column.

Costs That Are Often Forgotten, and How to Reduce Them

Certain items rarely appear in the first quote, although they affect the final total.

  • Renewal fees for add-on products whose maintenance has expired.
  • New SQL Server or Windows Server licenses when the infrastructure is replaced.
  • Rework of reports built in Management Reporter or Excel.
  • Dynamics GP training for staff when screens or processes change.

There are also reliable ways to lower the cost.

  • Upgrade regularly: One update a year prevents a large version gap.
  • Clean up first: Remove unused companies, archive old history, and delete reports that nobody opens.
  • Retire what you no longer need: Each customization or add-on that you remove is one item less to convert and test.
  • Agree on the scope in writing: A fixed scope allows a fixed or capped price.

Upgrade or Migrate: The Cost View

Any spending on Microsoft Dynamics GP (Great Plains) has to be judged against a fixed calendar. Microsoft has announced that feature updates, tax updates and technical support for Dynamics GP end on December 31, 2029, and that security patches end on April 30, 2031.

That does not make an upgrade a poor investment, because a current system stays supported and is cheaper to migrate later. A very expensive upgrade, however, deserves a second look. If old custom code pushes your estimate to the high end, ask for an estimate for a Dynamics GP to Business Central migration next to it. Compare both options over five years. For Dynamics 365 Business Central, that comparison should include Business Central pricing and licensing.

How Nevas Technologies Prepares a Quote

We do not send a price after a single phone call, because such a price would be a guess. First, we review your system: version, companies, database sizes, add-ons, customizations, and integrations. Second, we give you a written estimate. Third, we run the test upgrade, measure the conversion time, and confirm the final price and the downtime before the live date is set.

Nevas Technologies has delivered Dynamics GP projects for more than 20 years, and our mix of onsite and remote consultants helps keep upgrade costs low. After go-live, our Dynamics GP support team remains available.

Frequently Asked Questions

Is the new version of Dynamics GP free?
The software is included when your enhancement plan or subscription is active. The consulting work for the upgrade is charged separately.

Can our own IT department do the upgrade?
It is possible for a simple system on a recent version. Where customizations, add-ons or integrations exist, the risk of an error is higher, and most companies prefer to work with a partner.

How long does the whole project take?
Count on a few weeks for a simple system and a few months for a complex one, with user testing taking most of the calendar time.

Conclusion

The price of a Dynamics GP upgrade is decided less by the number of users than by the history of the system: its age, its companies, its data and everything that has been added to it.

The quickest way to replace ranges with a firm number is a short system review. Contact our team or request a quote, and we will tell you what your upgrade involves, how long your users will be offline, and what it will cost.

John Solomon
About the author:

John Solomon

Director, Business Central

John Solomon is a technology professional with extensive experience helping businesses improve their systems, processes, and digital transformation.

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