Can You Still Move from Dynamics GP to Business Central On-Premises?

Can You Move from Dynamics GP to Business Central and Keep It On-Premises?

If you use Microsoft Dynamics GP, you already know that change is coming. Microsoft will end product updates, tax updates and technical support for GP on 31 December 2029, and security patches will stop on 30 April 2031.

Most of the information you will find online points you towards one destination: Dynamics 365 Business Central in the cloud. But not every business is ready, or able, to move its finance system to the cloud. You may have strict data residency requirements, a significant investment in your own servers, unreliable internet at some sites, or simply a preference for keeping your business data on your own infrastructure.

So, a common question we hear at Nevas Technologies is this: Can we move from GP to Business Central and still keep it on our own servers?

The short answer is yes. Business Central On-Premises is still a supported deployment option, and new customers can purchase it through subscription licensing. However, Microsoft’s licensing and purchasing arrangements have changed, so it is important to understand what is available before making a decision.

Let’s look at the migration options, licensing changes, costs and factors to consider before choosing your next ERP system.

Is Business Central On-Premises Still Available for New Customers?

Yes. Microsoft has not discontinued Business Central On-Premises.

However, the licensing model has changed.

Until recently, businesses could purchase Business Central On-Premises through either perpetual or subscription licensing. From 1 April 2025, Microsoft restricted new customer purchases to subscription licensing. This means a new customer can no longer purchase a traditional perpetual licence for Business Central On-Premises.

Existing perpetual licence customers with active enhancement plans can continue to use their applicable licensing rights, including adding users and functionality under Microsoft’s terms.

For businesses migrating from Dynamics GP, this distinction is important. You can still consider an on-premises deployment, but you should budget for subscription licensing rather than assuming you can purchase a one-time perpetual licence.

There is also an upcoming purchasing change. From 1 February 2027, new Business Central On-Premises subscription purchases must be processed through Microsoft’s Cloud Solution Provider (CSP) programme. This changes the purchasing route, not the availability of the on-premises product itself.

For some organisations, an on-premises deployment remains a practical choice. For others, the cloud may offer better long-term value. The right decision depends on your infrastructure, business requirements and budget.

What Is the Difference Between Business Central On-Premises and Cloud?

Business Central offers both cloud and on-premises deployment options. Both provide core ERP capabilities for managing finance, purchasing, sales, inventory, warehousing and other business operations.

The main difference is where the software runs and who manages the infrastructure.

With Business Central On-Premises, the application is installed on servers that your organisation controls, either at your own premises or in a private data centre. Your IT team or implementation partner is responsible for managing the database, backups, security, performance and software updates.

With Business Central Online, Microsoft hosts and manages the infrastructure. Your business accesses the system through the internet without having to maintain its own application servers.

Here is a simple comparison:

One important consideration is that cloud and on-premises deployments do not always receive identical features at the same time. Some capabilities, particularly cloud-based services and AI integrations, may be exclusive to or more readily available in Business Central Online.

How the Migration Path Differs from a Cloud Move

This is one of the most important things Dynamics GP customers need to understand.

Microsoft provides a cloud migration tool that helps transfer Dynamics GP data into Business Central Online. It supports the migration of relevant setup information, master data, open transactions and historical data, depending on the migration scope and supported scenarios.

However, this tool is designed for Business Central Online. It does not provide a direct, equivalent migration route from GP into a Business Central On-Premises installation.

That does not mean you are stuck. An on-premises migration is possible, but it requires a different data migration approach.

Common methods include:

1. Configuration packages

Business Central has a data import framework that allows implementation partners to import structured information into the system.

Your partner extracts data from GP, transforms it into the appropriate Business Central format, maps the fields and imports it through configuration packages.

2. Excel-based data templates

Excel templates can be used to prepare and import master data such as customers, vendors, items and other records.

Your finance and operations teams can review and clean the information before it is loaded into the new system.

3. Opening balances and selected transaction history

Not every business needs to migrate its entire GP transaction history.

Many organisations choose to migrate master data, open transactions and opening balances while keeping their historical GP database available in a read-only or archived environment for audit and reference purposes.

4. Specialist migration tools

Independent software vendors offer migration tools that can help with more complex data structures and larger migration projects.

The appropriate solution depends on the amount of data, customisations, integrations and historical information your business needs to retain.

Because an on-premises migration involves more manual mapping and preparation, planning is especially important.

For example, GP account segments need to be mapped into Business Central’s general ledger and dimension structure. Posting groups, inventory setups, financial configurations and reporting requirements also need to be reviewed and rebuilt.

Every migrated financial balance must be reconciled before the new system goes live.

What Has Changed with Business Central On-Premises Licensing?

Licensing is an area where many Dynamics GP customers get confused. Microsoft has introduced several changes that affect how businesses purchase and maintain Business Central On-Premises.

Here are the main points to understand.

1. New customers must use subscription licensing

Since 1 April 2025, new Business Central On-Premises customers can purchase the product only through subscription licensing.

The traditional perpetual licensing option is no longer available for new customers.

Existing perpetual licence holders with active enhancement plans retain their applicable rights under Microsoft’s licensing terms.

2. New subscription purchases will move to the CSP programme

From 1 February 2027, new Business Central On-Premises subscription purchases must be processed through Microsoft’s Cloud Solution Provider programme.

The existing Dynamics Price List and PartnerSource Business Center purchasing routes for new subscriptions will be discontinued.

This is a change in the purchasing channel, not an announcement that Business Central On-Premises is being discontinued.

3. Dual Use Rights require attention

Some organisations use Business Central On-Premises through eligible online subscription licensing under Microsoft’s Dual Use Rights.

These rights allow qualifying customers to use certain on-premises software alongside their online subscription, subject to Microsoft’s licensing conditions.

Microsoft has also introduced licence key renewal requirements for applicable customers. From 5 June 2026, eligible Dual Use Rights customers must download and replace their on-premises licence keys every six months.

Businesses using this arrangement should assign responsibility for licence key renewal to their IT or ERP administration team.

4. Licence keys have changed with newer versions

From 1 October 2026, Microsoft’s licensing changes for Business Central version 28 and later use a common 28+ licence key approach rather than separate version-specific keys.

Businesses upgrading their on-premises environments should confirm that their licence keys are compatible with the version they intend to install.

5. On-premises costs need to be reviewed regularly

Microsoft’s licensing changes mean businesses should not assume that an on-premises deployment will automatically be cheaper than the cloud.

Compare subscription costs, infrastructure expenses, maintenance requirements and upgrade costs before deciding.

For a clearer understanding of your options, read our guide to Business Central pricing and licensing or contact our team for a licensing comparison based on your user requirements.

The Real Costs of Staying On-Premises

The licence is only one part of the overall investment.

When you choose Business Central On-Premises, you also need to account for the infrastructure and resources required to operate the system.

These may include:

• Server hardware: Purchasing, maintaining and replacing servers as they reach the end of their useful life.
• SQL Server and Windows Server: Licensing and maintaining the underlying database and operating system.
• Backup and disaster recovery: Implementing reliable backup processes and recovery arrangements.
• Security: Managing access controls, security updates, monitoring and infrastructure protection.
• IT resources: Having an internal IT team or an external partner to maintain the environment.
• Software upgrades: Planning, testing and installing Business Central updates.
• Customisation maintenance: Reviewing and updating extensions, integrations and custom functionality to maintain compatibility with newer versions.

Microsoft releases two major Business Central updates each year. With the cloud version, Microsoft manages the service updates. With an on-premises deployment, your organisation and implementation partner must plan and manage the upgrade process.

None of these expenses automatically rules out an on-premises deployment. They simply need to be included in your total cost of ownership calculation.

When Does Business Central On-Premises Make Sense?

Business Central On-Premises may be a suitable option for organisations with specific infrastructure, operational or regulatory requirements.

It may make sense when:

• Your industry regulations or customer contracts require particular data hosting arrangements.
• You have recently invested in your own server infrastructure.
• Your organisation has an experienced internal IT team.
• Some of your plants, warehouses or remote locations have unreliable internet connectivity.
• You require greater control over your hosting environment.
• You have existing infrastructure or integrations that need to be considered before moving to the cloud.

However, on-premises deployment is not automatically the best choice for every business.

When Is Business Central Cloud a Better Choice?

Business Central Online is generally a better fit for organisations that want to reduce infrastructure management and simplify ongoing maintenance.

It may be the better option when:

• You want to avoid managing servers, databases and infrastructure.
• Your employees work remotely or across multiple locations.
• You want Microsoft to manage the underlying service updates.
• You want easier access to cloud-based capabilities and newer AI features.
• You prefer subscription-based operating expenses without separate server investments.
• You want to scale your ERP environment as your business grows.

There is also a possible middle path.

Some businesses choose an on-premises deployment initially and consider moving to Business Central Online later, once their infrastructure requirements and customisations have been addressed.

Microsoft provides migration tools for supported on-premises-to-online scenarios. However, the transition still requires careful planning, compatibility checks and testing.

Choosing on-premises today does not necessarily mean you must remain on-premises permanently.

How to Plan Your Dynamics GP to Business Central On-Premises Migration

Whether you choose cloud or on-premises, a successful migration requires a structured implementation plan.

Here are the key steps involved.

1. Assess your existing Dynamics GP system

Start by documenting your current GP environment.

Identify the modules, customisations, third-party add-ons, integrations, reports and business processes your organisation uses.

This assessment helps determine what can be transferred, what needs to be redesigned and what can be retired.

2. Decide which data needs to be migrated

Not every historical record needs to be transferred into Business Central.

Determine which master data, open transactions, opening balances and historical information your business needs in the new system.

3. Clean your Dynamics GP data

Before migration, review your existing data.

Remove duplicate records, inactive customers, obsolete vendors and unnecessary items. Correct data inconsistencies to reduce migration problems.

4. Design your Business Central environment

Plan the new financial and operational structure.

Map GP account segments into Business Central general ledger accounts and dimensions. Rebuild posting groups, tax configurations, inventory setups and other required configurations.

5. Prepare your infrastructure

For an on-premises deployment, assess your server capacity, SQL Server requirements, Windows Server environment, network configuration, backup arrangements and security requirements.

6. Migrate and validate your data

Run trial migrations before the final transfer.

Compare financial balances, customer and vendor records, inventory quantities and open transactions. Resolve discrepancies before approving the migrated data.

7. Test business processes

Test the complete business cycle, including purchasing, sales, inventory, payments, receipts and financial reporting.

Involve employees from different departments to make sure the new system supports their daily activities.

8. Train your employees

Business Central has a different interface and workflow from Dynamics GP.

Provide role-based training to finance, purchasing, sales, inventory and management teams so that employees are comfortable using the new system.

9. Plan your go-live

Choose a suitable transition date, preferably at the beginning of a month or financial period.

Prepare a cutover plan covering final data extraction, opening balances, user access, system validation and post-go-live support.

A structured Business Central implementation plan helps keep every stage organised, with clear responsibilities and timelines.

How Nevas Technologies Can Help

At Nevas Technologies, we have more than two decades of experience working with Microsoft Dynamics solutions and helping businesses modernise their ERP systems.

We understand that moving from Dynamics GP to Business Central is not simply a software upgrade. It involves reviewing existing processes, preparing business data, evaluating infrastructure and choosing the right deployment model.

Our approach is not to push every customer towards the cloud or on-premises. Instead, we assess your business requirements, technical environment, licensing options and long-term budget before recommending a suitable solution.

Our Dynamics GP to Business Central migration services cover:

• Dynamics GP system assessment and migration planning.
• Data cleansing, mapping and migration.
• Business Central configuration and implementation.
• Customisation and integration requirements.
• Testing and financial reconciliation.
• Employee training and user adoption.
• Post-implementation support.

If you are not ready to migrate immediately, our Dynamics GP support team can also help maintain your existing system while you prepare your transition.

So, Can You Still Move from Dynamics GP to Business Central On-Premises?

Yes. Business Central On-Premises remains a supported deployment option, and new customers can purchase it through subscription licensing.

The important thing is to understand that Microsoft’s licensing arrangements have changed. New customers can no longer purchase perpetual licences, and from February 2027, new on-premises subscriptions will need to be purchased through the CSP programme.

Before making your decision, compare the full cost of on-premises and cloud deployment, assess your infrastructure requirements and understand the migration work involved.

The best ERP solution is the one that supports your business operations today while giving you room to grow in the future.

Not sure which option is right for your organisation?

Schedule a demo, explore our Business Central demo videos, or contact Nevas Technologies for a free consultation. Our team can help you assess your Dynamics GP environment and plan your move to Business Central with confidence.