This post has been updated October 9, 2024.
Most mid-market Enterprise Resource Planning (ERP) solutions have transformed significantly over the past few decades to keep up with advances in technology, namely the migration to cloud-hosted environments. However, many companies still rely on systems that are built on legacy software and have been haphazardly upgraded to fit with more modern applications and uses. This distinction is important when comparing newer apps such as Acumatica against outdated solutions like Microsoft Dynamics GP that are marketed as cloud ERP.
Formerly Great Plains, Dynamics GP used to be Microsoft’s top accounting software for small-and-medium-sized businesses. As Microsoft began to shift its focus to cloud-based platforms, they tried to migrate their on-premise enterprise systems to web-based environments and features, with mixed results. Acumatica, on the other hand, was born in the cloud and even when deployed in a local environment will retain all of the benefits of a true SaaS (Software as a Service) solution while providing you with options for where you want your application to live.
Here are the five most important points to consider when comparing Acumatica versus Microsoft Dynamics GP to choose the best ERP:
1. History
The history of an ERP product generally provides limited information on its current functionality, but it does help highlight the publisher’s strategy and give insight into the direction they will be taking the product into the future. When assessing a younger solution like Acumatica against the historically popular Dynamics GP, it is important to look at the developer’s approach to ensuring their product remains competitive. Acumatica Cloud ERP has captured market share from aligning new technology with SMB and mid-market demands, while Microsoft Dynamics GP is trailing off in popularity and is being phased out in favor of newer solutions.
What is now Dynamics GP was originally developed by Great Plains Software, which was acquired by Microsoft in 2001. It was initially designed as a solution for a grain elevator by the North Dakota-based developer, yet eventually grew to make a significant impact on the SMB software market after the Microsoft purchase and with additional integrations added to its platform. That time has long passed, however, and Microsoft Dynamics GP is slated to be sunset by 2029 at the latest per an End of Support (Microsoft’s version of End of Life) announcement in 2024. This is part of a long-time push to get legacy Microsoft ERP customers onto the Dynamics 365 portfolio.
Acumatica Cloud ERP was officially launched in 2008, making it one of the youngest enterprise software systems on the market and one that has continuously made waves in a stagnant ecosystem. This includes partnerships with market leaders such as Amazon and even Microsoft to add new integrations and innovative disruptions that bring consumer-level SaaS functionality to ERP. In 2019, private equity firm EQT Partners acquired Acumatica and invested significant capital devoted to upgrading the technological capabilities of the platform, the impacts of which can be seen in the improvements added year-over-year to Acumatica’s features.
2. Cloud
The primary selling point for both Acumatica and the aging Microsoft Dynamics GP has become the cloud accessibility featured in either solution. As previously mentioned, the former Great Plains is a legacy system that has been reconfigured for web access, meaning that there are limitations to its cloud functionality. This a concern for any outdated solution that has been repurposed for Internet-facing capabilities, which can also create huge security gaps in networks connected to this software.
Despite the migration, Dynamics GP is still built on the same architecture and retains the underlying coding it has had since the 1990’s, meaning that it still comes with all of the disadvantages of older, on-premise ERP technology. This clash of functionality has often created a mess on the user side, with different licenses required even as Microsoft simultaneously tries to transition customers to a subscription service. An additional SharePoint license will have to be purchased just to connect the solution to the cloud, adding another obstacle to gaining access to the Web through Microsoft Dynamics GP.
Acumatica is a born-in-the-cloud ERP, meaning it was designed from the ground up on a modern, web-based architecture that brings native SaaS functionality. However, unlike many competing cloud-based enterprise accounting systems like NetSuite, there are multiple options for hosting and deploying Acumatica that give your business flexibility in where your software lives and how it is accessed by your end users. These include multi-tenant public cloud, private cloud hosted locally or via a certified CSP (cloud service provider) such as SWK Technologies, or even on-premise installation – no matter which option you choose, you will not lose access to the underlying web-based functionality or the core architecture powering the solution.
3. Customization
The capacity of an enterprise system to be modular is an important factor in choosing the best ERP for your business. Out-of-the-box features may have to be complimented or adjusted as circumstances change or to meet individual criteria. As both Acumatica and Microsoft Dynamics GP are sold through partner channels, your business will rely on value-added resellers (VARs) to customize your solution.
Another downside of GP being an aging legacy system is that the programing language it is written is outdated and proprietary to the point where it is considerably more difficult to update. Customizations to Dynamics GP will inherently be more expensive as a result. It will also have a harder time working with third-party software – as well as even with some modern Microsoft apps – that uses a different development language and this will further add to the final price of modifying the system.
Acumatica Cloud ERP uses more standard programming languages such as .NET so that development is much easier with an experienced partner such as SWK Technologies. SWK has been named Acumatica Partner of the Year multiple times, and with team of solution and industry experts that includes top Acumatica MVPs will bring the knowledge and expertise you need to streamline re-configuration and other tweaks to make your software run smoothly around your needs. Even without a consultant, the Acumatica Community contains an active network of end users and developers that regularly share ideas, tips and solutions that when combined with the native malleability of Acumatica Cloud ERP, make customizing your enterprise system much easier than with a legacy on-premise application.
4. Integration
Besides customization, external applications may be required to extend your ERP into other areas of functionality that fit your business model. Software integrations allow enterprise solutions to be better positioned for specific proficiencies such as accounts payable automation, payroll, or for particular functions like Excel reporting. These add-ons deliver value by enabling you to mitigate time costs and other pain points through a centralized ERP system.
One of the biggest selling points of Dynamics ERP products is an easier integration with Microsoft Office applications. The ubiquity of Excel, Word, PowerPoint, etc. in multiple workspaces creates an image of a virtual stack that can be capitalized on; however, several competing systems already allow the incorporation of these programs, including Acumatica – Microsoft has even developed their own integrations for the cloud ERP solution. Given that Dynamics GP requires additional licenses to even add certain internal products, Acumatica may provide an easier integration with Microsoft Office depending on the level of customization.
Acumatica Cloud ERP has been increasingly integrated with Microsoft products and even the Azure network with each new update so that it provides a seamless experience with your personal Office applications. The cloud solution also features additional compatibility with external applications that extend its functionality for individual processes and vertical requirements. Development by experienced Acumatica partners such as SWK will enable you to build your cloud ERP into a system that mirrors your processes.
5. Cost & Scalability
Cloud technology delivers the most value when alleviating costs and other pain points associated with traditional software installation and maintenance. Without the need for physical onsite hardware, SaaS ERP systems avoid historical upkeep expenses. They also provide greater flexibility in growing operations as the solution may be updated in real-time and without direct interaction by users.
Microsoft Dynamics GP follows an industry standard of employing user-based licenses that prices implementation per user. This increases costs as your business grows and forces you to include equipment concerns when evaluating your labor pool. Users will have to be limited to an optimal level or risk raising your total cost of ownership (TCO) for your ERP system.
Acumatica avoids these additional costs by forgoing the traditional user-based pricing and instead charging based on computing power. No matter which function they are accessing, an unlimited number of operators will be able to interact with your ERP system at any given point. This feature means that Acumatica Cloud ERP grows with you and will always reflect the level of functionality you pay for.
Acumatica vs Microsoft Dynamics GP – Which is the Best Cloud ERP?
Acumatica Cloud ERP and Microsoft Dynamics GP are both viable options for SMBs looking to leverage increased connectivity and strong partner and user communities. However, GP relies on outdated technology covered up by new features, while Acumatica a true modern SaaS ERP that delivers scalability and seamless cloud functionality.
Contact SWK here to learn more about all of the features and capabilities of Acumatica, and see for yourself how it performs against other ERP systems.