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Business Central cloud migration: moving from on-premises to online
A Business Central cloud migration moves your company data from an on-premises Business Central or Dynamics NAV database to Business Central online, where Microsoft runs the servers, backups and updates. Microsoft provides a built-in migration tool that copies data through Azure Data Factory. The work around it, such as reaching a supported version, turning customisations into extensions and testing, is where most of the effort goes.
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Why companies move Business Central to the cloud
Running Business Central on your own servers means you buy and patch the hardware, look after SQL Server, run backups and plan every version upgrade yourself. In the online version Microsoft does those jobs and applies updates on a date you choose. Copilot features run only in the online version, so the gap between the two widens with each release.
The cloud is not right for every company. If you depend on direct database access for reporting, or on modifications that cannot be rebuilt as extensions, plan for those first. Our cloud vs on-premises comparison covers the trade-offs in more detail.
Supported starting points for Business Central cloud migration
How the migration tool works
Microsoft's migration documentation sets the base rules shown above: the on-premises database must run on SQL Server 2016 or later, at compatibility level 130 or higher. You run the cloud migration setup in a Business Central online environment, and a self-hosted integration runtime on your network sends the data to Azure Data Factory, which copies it into the online database.
The tool copies company data from the base application and from extensions that meet Microsoft's requirements. It works at the SQL level, and sign-in moves to Microsoft Entra ID accounts, so users and their permission sets are set up in the online tenant. You can replicate several times while you test, then run the data upgrade and switch the migration off when you are ready.
Business Central cloud migration step by step
- 1
Check the version and code
Confirm your version and SQL Server meet the requirements, and list every modification and third-party add-on.
- 2
Move customisations to extensions
Old C/AL modifications are rebuilt as AL extensions, and add-ons are swapped for their AppSource versions where they exist.
- 3
Clean and trim data
Delete or archive data you do not need online, because database storage counts against your capacity.
- 4
Set up the online environment
Create a production and a sandbox environment, install the matching extensions and add users.
- 5
Replicate and test
Run the migration into the sandbox, then let key users test their processes and reports on the copied data.
- 6
Cut over
Stop postings on-premises, run the final replication and data upgrade, switch off the migration and open the online system to users.
What to plan for beyond the data
- ✓Reports built on direct SQL queries move to Power BI, APIs or Business Central reports, because the online database is not open to direct queries.
- ✓Integrations that wrote straight to tables move to Business Central APIs or web services.
- ✓Printers, scanners and file drops on the local network need cloud options, such as Universal Print or an online file store.
Questions about Business Central cloud migration
How long does a Business Central cloud migration take?
The replication itself is usually the short part. Time goes into the version upgrade, the extension work and testing, which depend on how much custom code you run.
Can we move one company at a time?
Yes. The setup lets you choose which companies to migrate, so you can move them in batches.
What about Dynamics AX?
AX is not a standard source for the migration tool. See Dynamics AX to Business Central migration for how that move works, and our reasons to choose Business Central guide if you are still deciding.
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