Why NAV and Business Central On-Prem Software Costs More Than You Think 

At first inspection, it seems like NAV and Business Central should stay on-prem. It could seem like a good idea to save money by using On-Prem Software. You already paid for your servers and everything works, so why change it? 

But that's where a lot of businesses miss the real costs. Behind the scenes, maintenance, downtime, and missed opportunities slowly eat away at your budget. 

In this post, we’ll uncover the hidden costs of being on-premises and show you how migrating to Dynamics 365 Business Central in the Cloud can minimize your total cost of ownership and protect your business for the future. 

The Hidden Costs of On-Prem ERP Infrastructure 

You might not realize how much those servers in your back room are costing you. 

Compared to cloud-based solutions, the average mid-market firm spends 15–25% more each year to keep its on-prem ERP systems running. Adding more storage, upgrading hardware, and getting IT help all add up. 

Every time you: 

—you’re introducing costs that cloud customers don’t have to deal with, something Western Computer helps clients uncover during early assessments. 

Business Central Cloud takes care of all updates, backups, and patches for you. That means no maintenance contracts, no weekend upgrades, and no downtime. 

2. Security & Compliance Risks of On-Prem ERP 

Attacks on small and medium-sized firms are up 57% over last year. 

Older software systems like NAV and Business Central On-Prem Software can’t keep up with new compliance rules like GDPR, SOC, and CCPA, which is why so many organizations are moving from Dynamics NAV to Business Central for built-in compliance. These risks only grow as NAV’s end of support date gets closer. 

Even a small breach can cost a lot of money, time, and damage to your reputation. 

With Microsoft Dynamics 365 Business Central Cloud, Microsoft provides enterprise-grade security, redundancy, encryption, and 24/7 monitoring—so your compliance and IT costs drop dramatically. 

3. Higher Labor Costs for Legacy Systems 

You’re not the only one who’s had trouble finding technical people who understand C/AL code or can modify older NAV systems. 

As fewer professionals maintain expertise with these legacy systems, consulting and maintenance rates keep rising. 

Moving to Business Central SaaS modernizes your ERP and gives you access to a much larger ecosystem of developers, integrations, and apps built with AL, Power Platform, and Microsoft Copilot. 

That means less one-off rework, faster support, and lower long-term staffing costs. 

4. Missed Innovation Means Missed ROI 

On-prem users wait years between upgrades, but Business Central Cloud users receive major updates twice a year and incremental improvements every month. 

That means instant access to: 

Cloud customers aren’t just saving money—they’re building long-term value through continuous innovation. 

5. Bridge to Cloud 2 Makes Moving Smarter Than Ever 

Customers eligible for Microsoft’s Bridge to Cloud 2 program can save up to 40% on licensing costs when they move from NAV or Business Central On-Prem Software to Business Central Cloud. 

It’s not just a sale—it’s Microsoft’s method of helping companies modernize before support ends and on-prem prices climb even higher. 

When you factor in reduced costs for support, licensing, and IT, the cloud advantage becomes crystal clear. 

Final Thoughts: On-Prem vs Cloud ERP Costs 

The real question isn’t whether you can afford to shift to the cloud—it’s how much longer you can afford to stay where you are. 

Migrating from NAV and Business Central On-Prem Software to Business Central Cloud lowers your total cost of ownership, improves security, and gives your team access to modern tools like Copilot and Power BI. 

See Your Real Savings: Join Our Bridge to Cloud Workshop 

Learn exactly how your firm can save with Microsoft’s Bridge to Cloud 2 program and what your migration plan should look like. 

Reserve Your Place → Free Workshop