The Big Question Facing Life Sciences Organizations: Microsoft Dynamics AX vs. Microsoft Dynamics 365 in the Cloud

On January 12, 2022

As you may know, Microsoft Dynamics AX is approaching end of life leaving life sciences organizations who have relied on Dynamics AX for years with an important decision to make. Continue investing in an unsupported on-premises solution or invest in building a modern cloud infrastructure for the future. There are many factors that will and should go into your decision and we appreciate the challenge this brings to your organization.

The good news is there are numerous benefits that await you on the other side of Dynamics AX. This article will highlight some overall business advantages you can expect with a move to an industry-specific cloud ERP solution such as AX for Pharma 365™, powered by Dynamics 365.

Benefits of Migrating from Microsoft Dynamics AX to the Cloud

In a recent Forrester study, commissioned by Microsoft, The Total Economic Impact™ of Migrating from Microsoft Dynamics AX to Microsoft Dynamics 365 in the Cloud shares results from four companies that migrated from Dynamics AX 2009 and/or AX 2012 to Dynamics 365.

You will see the improvements are quite impressive and included:

  1. A 4% reduction in total cost of ownership (TCO)
  2. An 8% overall savings in licensing and support costs, increasing to 20% and more for organizations with global operations and multiple on-premises Dynamics AX deployments
  3. On-premises infrastructure cost savings of $25,500 per server on average
  4. A 50% increase in productivity for IT systems administrators tasked with maintaining and upgrading on-premises deployments

Beyond TCO, the interviewed organizations reported additional benefits, including:

  1. Efficiency gains with improved visibility and real-time data for finance, manufacturing, and supply chain operations
  2. Increased profitability with the ability to scale and meet increase in eCommerce demand
  3. A 3% to 9% increase in productivity across a variety of roles
  4. User and customer experience improvements

Benefits of Migrating Microsoft Dynamics AX to AX for Pharma 365

For life sciences organizations – particularly in Biotech, Pharma, and Medical Devices – you have unique needs that must be met with a cloud ERP solution. This typically involves costly customizations and add-ons. However, AX for Pharma 365 powered by the Dynamics 365 cloud platform, is designed to meet your business and industry-specific requirements and extend your capabilities so you can achieve rapid time to value.

AX for Pharma 365 includes:

  1. GxP and FDA Compliance
  2. Native integration with Microsoft Dynamics 365, Microsoft 365, Power Platform, and other Microsoft technologies
  3. All the powerful functionality in Dynamics 365 Finance & Supply Chain Management with industry-specific enhancements and optimizations for:
    1. Warehouse Management
    2. System and Organization
    3. Quality Management
    4. Inventory Management
    5. Product Information Management
    6. Sales and Marketing
    7. Enterprise Asset Management
    8. Procurement and Sourcing
    9. Production Control Project Operations
  4. Extended AX for Pharma 365 functionality:
    1. Pharma Supply Chain Management
    2. Advanced Quality Management
    3. Clinical Supplies
    4. Advanced Warehouse Management
    5. Weighing & Dispensing
  5. Real-time Power BI reporting and analytics

Identify Your Best Path from Microsoft Dynamics AX to Dynamics 365

The ability to unify your systems, your data, and your processes on a single cloud platform built for life sciences is transformational. However, to compare the true risks and costs of remaining on-premises with Microsoft Dynamics AX vs. investing in a modern cloud infrastructure, a thorough assessment and cost analysis will help you make the best decision for your organization and goals.

AX for Pharma is solely dedicated to helping the life sciences community grow and succeed. A cloud migration requires a partner you can trust to help you evaluate your options, provide a demonstrate of solutions to consider, and plan your next steps. Contact our experts for guidance and answers.