Wstecz
Microsoft Dynamics AX in 2026: Rising Costs, Dwindling Opportunities, and the Moment of Decision to Migrate to Dynamics 365
February 24, 2026
INSIGHT
Microsoft Dynamics AX continues to be the operational foundation of many manufacturing, logistics, and retail companies. The system supports finance, supply chain and key business processes, often operating stably for many years. However, technical stability does not mean cost stability. In 2026, the total cost of maintaining Dynamics AX is increasing year by year, and at the same time the system is becoming increasingly difficult to adapt to modern business requirements. In many organizations, there comes a time when maintaining an existing environment becomes less profitable than migrating to Dynamics 365.
Dynamics AX is designed in an on-premises infrastructure model that requires the maintenance of servers, test environments, databases, and security procedures. Each of these elements generates fixed operating costs that do not decrease with the passage of time. Older environments require additional administrative work, more frequent interventions, and maintenance of custom configurations.
Code developed in the past is also an important factor. Most Dynamics AX deployments contain custom customizations that are created and extended over many years. Any change in business processes requires the analysis of existing modifications, tests and the involvement of specialists, whose availability on the market is becoming less and less. As a result, even small organizational changes can generate disproportionately high technological costs.
From a financial perspective, the system does not remain cost neutral. Maintaining an older architecture means constant expenses that do not translate directly into new business opportunities.
The biggest burden is not always in the costs of infrastructure or technical support. Dynamics AX often requires additional tools or data processing to provide complete real-time reporting, which affects how financial and operational decisions are made. In many organizations, reporting requires data processing outside the ERP system, which lengthens financial closure processes and increases the risk of errors.
The older architecture also makes it difficult to integrate with modern tools such as analytics systems, e-commerce platforms or solutions that automate document flow. Each integration requires an individual approach and additional development work, which increases both the cost of implementation and subsequent maintenance.
Technological constraints also affect the pace of development of the organization. It takes longer to implement new operating models, automation or new sales channels because the system was not designed with the current technology ecosystem in mind.
Dynamics 365 Finance and Supply Chain Management operates in a cloud-based service model that eliminates the need to maintain your own server infrastructure. System updates, security and technological developments are implemented within the platform, which changes the structure of costs and increases their predictability.
A significant change also applies to integration and reporting. Dynamics 365 is designed as part of the Microsoft ecosystem, enabling direct integration with analytics tools, data platforms, and business process automation solutions. This means less reliance on custom code and a lower cost of making changes in the future.
In the long term, the difference is not only in technology, but in the predictability of costs and the ability of the system to support the development of the organization.
The decision to migrate is often postponed until the system begins to limit the operational activity or development of the organization. From an economic perspective, the most rational moment is the planning stage for new integrations, process changes or business development. In such situations, continuing to invest in Dynamics AX modifications increases the cost of the system, which in the long run will have to be replaced anyway.
Each subsequent custom adjustment increases the complexity of the environment and the cost of future migration. At the same time, the cost of infrastructure maintenance, support and integration accumulates over time. In many cases, an analysis of several years shows that the total cost of maintaining Dynamics AX can be comparable to the cost of switching to Dynamics 365.
Migration is no longer just a technological project and becomes a decision about the cost structure and the ability of the organization to continue growing.
Modern ERP migration involves a controlled transfer of data, processes and functionality to a new environment, rather than a simple technical upgrade. The process begins with an analysis of the existing system, including the identification of integrations, custom adjustments, and the actual use of functionality.
In practice, some of the solutions implemented in the past are no longer needed or can be replaced with standard Dynamics 365 functions. The next stage is the preparation of the target architecture, data migration and testing of business processes. The last step is to start the production environment.
A modern approach to migration allows you to reduce operational risks and at the same time simplify the technological environment, which directly translates into lower maintenance costs in the future.
The most important change is the transition from a model of maintaining your own system to a model of using a platform that is developed continuously.
Staying with Dynamics AX means a further increase in maintenance costs and a gradual reduction in technological capabilities. The system will require incremental investments to maintain compliance with business and security requirements, without simultaneously providing significant new functionality. At the same time, the availability of Dynamics AX specialists will decrease, which may increase the cost of support.
Dynamics 365 provides a continuously developed environment that meets current security and integration standards. Investing in a new platform stabilizes the cost model and reduces the need to maintain outdated infrastructure.
From a management perspective, the decision to migrate from Dynamics AX to Dynamics 365 is not just about technology. It is a decision to control long-term operating costs and provide the organization with a stable and scalable ERP platform for years to come.
Most organizations do not have a complete picture of Dynamics AX costs because they are scattered across infrastructure, support, integrations, and additional development work. Only an analysis of the total cost of ownership determines when the migration to Dynamics 365 becomes financially and operationally justified.
Retcon performs a technical and business assessment of Dynamics AX, including an analysis of customizations, integrations, and maintenance costs over several years. The result is a specific recommendation: further maintenance, optimization or migration to Dynamics 365 with the definition of the scope and scenario of the transition.
Contact us to review the current version of Dynamics AX and identify possible scenarios for further development.
https://www.retcon.pl/contact
