Microsoft Dynamics ERP Cloud Pricing

We’ve taken the work out of Microsoft Dynamics ERP cloud pricing, and come up with a simple pricing scheme.

The cost of running your Microsoft Dynamics ERP in the cloud used to be difficult to calculate. There were a lot of different factors, and there was no calculation you could use to simply estimate your monthly cost.

The Old World of Dynamics ERP Cloud Pricing

Microsoft Dynamics ERP requires multiple servers to make it work.  You need a SQL database, a remote desktop server, and other supporting resources to keep your ERP system online and accessible.  It’s difficult to estimate what the “cloud costs” of these different resources are.

All of these servers and resources cost different amounts, and they’re billed differently – it’s very confusing!  For instance, you might use SQL as a service, which is priced differently from Azure’s Infrastructure as a Service (Iaas).  Or you could use IaaS and then put your SQL server on that.

Hope-ium

And then you’d have to consider that these different resources may be billed per user, by the amount of bandwidth you consume, or by the amount of storage you use up. It’s confusing and laborious to estimate how much it will cost, especially if you don’t know what kind of resources your ERP system uses on a monthly basis.  See for yourself by trying to figure out how to use the Azure price calculator.

Furthermore, licensing costs for Microsoft Dynamics ERP used to be very complicated, as you would buy them one time, and then pay a yearly enhancement fee.  More on that below.

So, How Much Does it Cost to Run Dynamics ERP in The Cloud?

Encore has constructed plans that guarantee you all the benefits of running your ERP in the cloud – with none of the headaches of figuring out a price.

Dynamics ERP Product Price
Microsoft Dynamics GP $650-1450 + $65/user/month
Microsoft Dynamics NAV $650-1450 + $65/user/month
Microsoft Dynamics AX $249/user/month

Important Note: You can only get these prices through Encore – Contact Us for more information.

Stop! Do you already own your Dynamics ERP licenses?

Our “Dynamics ERP in the Cloud” plans  include the cost of your new licenses. Licenses for Microsoft Dynamics ERP have traditionally been a one-time purchase in packs, or individually. Encore is one of the few partners in Canada that can now offer you monthly subscription licenses for Microsoft Dynamics GP and Microsoft Dynamics NAV.

If you already own your licenses, chances are that you pay a yearly enhancement renewal, instead of a monthly subscription.   It is in the neighborhood of 20% of your initial license costs. There’s a lot more to it than what I’ve written here, so dig deeper into your licensing costs or contact us for more info.

As for the cost of moving those licenses you already own to the cloud, simply subtract $65/user/month from the price.  For  $400-1200/month, Encore is able to replace your server. A good time to do this is when you upgrade.

Microsoft Dynamics GP Cloud Pricing

The price to run Microsoft Dynamics GP in the cloud is $650-1450 + $65/user/month.  This is made up of two parts: the cost of your infrastructure ($650-1450/month), and the cost of your licenses ($65/user/month).  In addition, you may choose to sign up for one of Encore’s support plans.  Finally, you also must factor implementation costs into your budget.

Microsoft Dynamics NAV Cloud Pricing

The price to run Microsoft Dynamics NAV in the cloud comes to $650-1450 + $65/user/month.  This is also made up of two identical parts: the cost of your infrastructure ($650-1450/month), and the cost of your licenses ($65/user/month).  In addition, you may choose to sign up for one of Encore’s support plans.  As with Dynamics GP, you also must factor implementation costs into your budget.

Microsoft Dynamics AX Cloud Pricing

Microsoft Dynamics AX is now known as Dynamics 365 for Operations. It’s price in the cloud is $180/user/month in US dollars. The price above is listed in Canadian dollars.

Additional Implementation Costs

Unfortunately, you can’t buy an ERP system’s licensing/infrastructure and start using it from day one.  There are additional implementation fees that will be incurred.  These are the initial costs of configuration, customization, development, project management, training, and professional guidance.  They are critical to your success.

These implementation costs vary from business to business.  Encore has worked on a huge variety of projects, with the cost of implementation ranging from several thousand to several hundred thousand dollars.  This is the part of your new ERP system’s implementation that provides the most risk (it takes the right partner to get the job done right), and it’s the part that is most specific to your business’ requirements.  Contact us for an estimate of what a new ERP system will cost you.

How Does Encore’s Dynamics ERP Cloud Pricing Compare?

Microsoft Dynamics ERP On-Premise Pricing vs Cloud Pricing

As we noted, the Infrastructure cost of using Dynamics ERP (GP/NAV) in the cloud is  $650-1450 per month. Server costs are a lot different, though. They tend to “peak” every three or so years, and they’re a lot more.  If we could lump all of those capital expenditures into a monthly operating expenditure, what would it look like? Here’s our estimate:

Features Cost Break-Down
SQL Server $277.78/month $10,000/36 months
Remote Desktop $138.89/month $5000/36 months
Maintenance $625/month 25% of a 90,000 IT salary= 22,500, 22,500/36
Server Room Cost $437.50/month $35/sq foot/year
Total $1,479.17/month $53,250.12 = total cost over 3 years

 

That’s not to mention the extra 32 hours (~$6000) a server room takes to set up  when you first deploy, AND the up-front and recurring cost of your licenses. The average recurring cost of that yearly enhancement renewal fee is very, very roughly about $60/user/month.

At this comparison, the typical company needs 30-40 ERP users before on-premise is justifiable purely from a cost perspective.  That’s a relatively large number of users.

Of course, once an organization gets to be that size, their server costs are usually higher than the above estimate. In addition, the other benefits of the cloud really start to kick in like scalability and standardized business processes.

Microsoft Dynamics ERP Cloud Pricing vs Netsuite Pricing

One of the biggest players in the ERP cloud world is Netsuite.  They charge a flat rate of $999/month to $14,999/month plus $99/user/month, with a “typical” flat rate of $3,000-$4,000. Recall that our Dynamics GP price is $65/user/month with a flat rate of just $400-1200. There are few scenarios in which Netsuite is a better value than Encore’s Dynamics ERP Cloud plans.

Netsuite’s implementation and support costs are comparable to Dynamics GP and Dynamics NAV, but the actual numbers depend on who does the implementation.

Conclusion and Wrap-up

There are four costs that you will incur when running your Microsoft Dynamics ERP in the cloud with Encore:

  1. Licencing costs of $65/user/month (if you don’t already own your licenses)
  2. Cloud/infrastructure costs of $650-1450/user/month
  3. One-time implementation or upgrade costs, which can vary widely from $1,000 – $1,000,000+ (depending on the size of your business)
  4. Support costs after go-live, which can be billed a number of different ways

We think that it’s hard to go wrong with Microsoft Dynamics ERP in the cloud.  It’s cost-efficient, scalable, predictable, and stacks up well against the competition.

For more information or to ask a question, contact us.

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