Upgrade Preparation Series II Upgrade vs ReImplementation 03192019

Upgrade Preparation Series II: Upgrade vs. Re-Implementation 03/19/2019 Gregor Newland • Regional Director of Business Development, Ellipse Solutions • Over 20 years of experience in the Dynamics channel • Email: gnewland@ellipsesolutions. com

24 13 2016 Years ERP Consulting Years Dynamics Focus First D 365 Go-Live Dynamics 365 Concierge - Step 1: Approach Re-implementation, upgrade, or a mix of the two – work closely with our experts to determine the optimal route for your organization to take when moving to Dynamics 365 solutions@ellipsesolutions. com

Agenda • Code upgrade options and tools • Evaluating your code • Extensions development • Data upgrade options from AX 2009 & AX 2012 • Open items & tables vs. historical transactions • BYOD – Data Warehouse • Upgrade vs. Re-Implementation • Examining your organization • Typical decision points • Benefits of Re-Implementing • User Licensing • Know your rights • Purchasing options

AX 2009 – Data & Code

Upgrade Considerations AX 2009 • • • Limited Data Migration Data ‘Analyzer’ Tool Re-examination of Code Modifications Required Code Modifications Must be Moved to Extensions Additional Functionality & Deprecation Gap Quite Extensive

AX 2012 – Data & Code

Upgrade Considerations AX 2012 • • • Data Migration Tool Available (including Historical Transactions) Run Code Conflict Reports in LCS Examine Time & Effort Move all code modifications to ‘extensions’ – no more ‘overlayering’ Rewrite all external integrations from AIF to ‘Data Entities’ New BI Strategy (combination of SSRS, Financial Reporting, Power BI, etc…)

Upgrade vs. Reimplementation

Strategy/ROI Upgrade Re-Implementation • When viewing the move to Dynamics 365 as a purely technical exercise without a desire to explore new functionality • When the Dynamics 365 project is utilized as an opportunity to advance the use of the system, discover new features, and achieve a true ROI

Customizations Upgrade Re-Implementation • When the volume of Dynamics AX customizations that will need to be preserved in Dynamics 365 is considerable • Even when the number of Dynamics AX customizations is not significant, yet most mods can be replaced by standard Dynamics 365 features

Custom Code Quality Upgrade Re-Implementation • When the original Dynamics AX implementation is welldocumented and followed best practices (processes and code) • When the prior customizations are not well defined without following patterns and best practices

Documentation Upgrade Re-Implementation • When functional, technical, and user documentation is of high quality and can be relied upon • When the documentation is lacking, and reliance on tribal knowledge is excessive

ISVs Upgrade Re-Implementation • When most add-on ISV products will continue to be in use • When significant number of Dynamics AX ISV solutions are not available in Dynamics 365, not curated by Microsoft, or can be replaced by out-of-the-box functionality

Data Upgrade • When expecting to utilize Microsoft data upgrade tools Re-Implementation • When planning to load the initial data for Dynamics 365 without the use of data upgrade tools

Integrations Upgrade Re-Implementation • When the number of external integrations is low • When dependency on deprecated tools (such as AIF) is substantial

New Features Upgrade • When the scope of Dynamics 365 is largely similar to the original Dynamics AX implementation Re-Implementation • When the reliance on deprecated features (for example, Product Builder) or heavily updated features (for instance, Advanced Warehouse Management post AX 2012 R 2) is changing the landscape of ERP usage

Licensing Update

Dynamics 365 Named Licensing Types Operations Team Members (~ AX 2012 Enterprise) (~ AX 2012 Task) Activity Device (~ AX 2012 Functional) (Multiple Log-Ins)

Two Steps Know Your Rights • Existing Customers Get Discounts EA – Enterprise Agreement CSP – Cloud Service Provider Decide How to Buy • On Premise? • EA or CSP?

Know Your Discount Rights – AX 2009 D 365 1 Full AM User 1 Operations User & 2 Activity Users 1 Light User 1 Activity User 1 Device 1 Server (On-Premise) Limited Upgrade Offer *1 Operations User *1 Activity User for every 10 Light Users

Know Your Discount Rights – AX 2012 D 365 1 Enterprise User 1 Operations User 1 Functional User 1 Operations User 1 Task User 1 Activity User 1 Self Service User 1 Team Member 1 Device 1 Server (On-Premise) Limited Upgrade Offer *1 Activity User for every 3 Task Users *1 Device for every 3 AX 2012 Devices

On Premise • Just continue to pay Annual Maintenance • Expect Increase in Infrastructure Cost • No Embedded Azure Offerings like Io. T & Power BI • No Constant Back Up & Restore (last 60 days – restore to the second) • No High Availability 24/7/365 SLA

In the Cloud • You will pay for every user in the Cloud, so only pay for the licenses you actually need • Minimum 20 Operations Users for deployment • Two levels of SKUs • One if you continue Annual Maintenance • One if you wrap Annual Maintenance into the monthly fee

CSP or EA? Run the Numbers CSP EA • Make sure it is Direct or Tier 1 • Offers specific licensing expertise • Month-to-month pricing on all offerings • Offer better pricing for small and mid sized customers • Can be DPOR • • LARs and LSPs No specific licensing expertise Multi-year commitments Offer better pricing for enterprise customers • Cannot be DPOR LAR – Large Account Reseller EA – Enterprise Agreement LSP – Licensing Solution Provider CSP – Cloud Service Provider DPOR – Digital Partner of Record

When to Use Both • Every customer can have multiple CSPs & LSPs • D 365 Cloud Provides • Production Environment • 1 Development Environment • 1 Test Environment • Consider CSP for • Additional Development Environments • Build Environment • Data Warehouse & Azure Services

Questions?

Gregor Newland - Ellipse Solutions gnewland@ellipsesolutions. com (937) 718 -3524