Is Now the Time to Move NAV to the Cloud?

In an earlier blog, Fenwick CEO Greg Galloway discussed cloud computing concepts and how they could be applied for Dynamics NAV.

In the last 12 months there’s been a flood of interest from clients and prospects in utilising the cloud model, for a variety of reasons. Some are attracted to potential infrastructure cost savings, some are interested in the flexibility to vary their user numbers up and down as required, while many have a limited internal IT capability and simply wish to access a professionally managed set of IT assets with well-defined service level agreements and disaster recovery processes.

However one drawback of moving to the cloud for Dynamics NAV clients has been Microsoft’s requirement to use a Services Provider License Agreement (SPLA) based on named users, instead of a traditional on-premise license based on concurrent users. We’ve found that many of our clients typically have two to three times as many named users as concurrent users, and so any potential cost savings would be rapidly consumed by the additional named user licenses required under the SPLA model.

The good news is that 3 recent changes have made it much more feasible for Australian NAV users to consider the cloud model for Dynamics NAV.
Firstly, the increasing adoption of the NAV 2009 Role Tailored Client, and the recent release of the NAV 2013 web client have greatly reduced the network capacity required to deploy NAV across a WAN.

Secondly, Microsoft have recently relaxed the licensing requirement, and we can now deploy Dynamics NAV for new and existing customers from a cloud provider using a traditional BRL license.
And finally, cloud providers with specialist expertise in deploying Dynamics NAV, such as SaaSPlaza are moving to service the Asia/Pacific region from their new data centre in Singapore.

Taken together, these changes mean that anyone using NAV now has a viable option for moving to a cloud deployment, and will almost certainly improve their service levels and Disaster Recovery capability by doing so. Definitely something to consider if you are approaching an upgrade or your existing NAV servers have run out of capacity.

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