The future is bright the future is £50
The start of the Microsoft Dynamics Hosted AX revolution is beginning with what could be the best value for money for any ERP platform.
The ERP environment is rapidly changing, moving away from the traditional server-based IT model towards a virtual environment accessed through the internet. The 2 key areas of concern have always been reliability and security, and through the delivery of a private cloud, and advances in Cloud Enterprise Services, these areas have been quashed.
The private cloud now offers those that migrate a faster more secure and reliable way of computing. The delivery of those that have previously chosen to host their internal server infrastructure have already taken advantage of the chance to minimise waste and have shown the advantages that can be gained from hosting Microsoft Exchange Servers, Microsoft SQL Servers and Microsoft Sharepoint Servers so what is it that has stopped those same end users from hosting AX.
It might just be that there has been a lack of understanding of the benefits.
A private cloud enables the end user to have their physical servers virtualised into a private and dedicated environment. This is seamless and offers a guaranteed uptime.
But the biggest change is that of the costing. It is now possible using Dynamics AX 2012 Hosted for an end user to reduce the cost of ownership dramatically. A 100 user site can now reduce the cost of the licence substantially
| OnPremise v Hosted | Monthly Cost | Annual Cost | Upfront Cost | Maintenance Plan |
| AX 2012 OnPremise | £160 000 | £25 600 | ||
| AX 2012 Hosted | £50 per user per month | £60 000 | £4500 |
So with the potential to deliver Dynamics AX as a hosted solution for just £50 a month per user this has to be the an incredible effort on behalf of Microsoft and the hosting partners to be able to deliver a truly affordable ERP Platform for today’s financially impoverished times.
| Hosted v OnPremise | Monthly Cost | Annual Costs | UpFront Costs | Maintenance Plan |
| SAP | £216 000 | £32 400 | ||
| Oracle | £220 000 | £44 000 | ||
| Dynamics AX | £50 per user per month | £60 000 | £4 500 |
But it is against the ERP competition that Dynamics AX 2012 Hosted comes into its own
A client choosing Dynamics AX 2012 Hosted over Oracle now has a simple task, over the first 3 years they can spend a total of £208 800 against £352 000 in fact it would be take 10 years for the total licence cost of Dynamics AX 2012 Hosted to be more expensive and that is without taking into consideration the value of saving the upfront costs to the end client.
This is a massive step change in the ERP market, one in which Microsoft have nailed their flag to the mast, they clearly want to increase market share and the battlefield they have chosen is that of price.
At DynamicsWorld we are talking with Microsoft and Hosting partners about how to assist in the delivery of private clouds and much more information regarding this will follow as we know more but if you want to register your interest regarding the £50 per user per month pricing please email chris@dynamicsworld.co.uk
You can also speak with our Most Valued Provider Commensus
