Just when you had wrapped your head around the Dynamics 365 for Finance & Operations pricing, Microsoft introduces a new model! Microsoft announced changes to Dynamics 365 licensing at Inspire 2019.
In this article we will help you understand in how the new licensing will impact you, whether you are an existing customer or a company considering moving to Dynamics 365. Note that Microsoft has not yet released the final details, and the following information is subject to change. Always check with a partner for up-to-date licensing information.
What’s Changing for Dynamics 365 Finance & Operations Licenses?
- Finance & Operations is being separated into 2 different applications, Finance and Supply Chain Management.
- Licensing for each user starts at $180 USD/user/month for single-app full users of Finance or Supply Chain Management. (Canadian pricing has not yet been released.)
- You can also get heavily discounted “attach” licenses for each app beyond the first.
- You will be able to license Retail, Talent, and even Customer Engagement apps under this model.
- This is called the “attach” licensing model.
To find out how the new licensing will work in detail for your company, check out this overview from a Microsoft slide at Inspire, and then read our detailed explanation below.
How Does the New Dynamics 365 “Attach” Licensing Work?
- Each user gets one Unified Operations app as their base: generally, Finance, Supply Chain Management, or Retail.
- Any of those 3 base apps costs $180 USD.
- Then you can attach the other apps for $30 each.
- You can also attach Customer Engagement apps, most of which would be $20 USD/user/month.
- Attach and base licenses give exactly the same functionality.
So, Will the New Dynamics 365 Pricing Raise My Costs?
In general, your company’s licensing costs may rise if you have a lot of multi-app users, but fall if you have a lot of single-app users.
Under the previous licensing model, the Unified Operations Plan license cost $190 USD/month/full user and included Finance & Operations.
So, under the new “attach” model you may be able to achieve a small price decrease for some users, going from $190 down to $180. This may be possible, for example, for your team members in pure finance or production roles, who may need only one of the D365 apps: Finance or Supply Chain Management.
However, you may also need a price increase for users who will need two or more apps, going from $190 up to $210 or higher.
Now let’s zoom out to look at what this means from a company-wide perspective, with 2 different examples:
As you can see, getting the best mix of licenses for your team will require careful examination of your business processes. If you’re not sure what your licensing plan is now, or what this change means for your company, please contact a partner.
Note: Jason Gumpert of Microsoft Dynamics World reported on July 18 that “Microsoft will have a qualified offer in CSP of 50 percent off Attach SKUs, meaning $15 per user per month for Unified Operations apps.” We expect further details from Microsoft this fall and will share those with you as soon as we can. You can sign up for our newsletter or follow us on LinkedIn to get the latest news.
Which Dynamics 365 Apps Do Each of My Users Need?
This table shows which features will be part of which apps in the attach model, based on security role:
For help auditing your employees’ current security roles and usage, and in determining whether your business processes would be impacted by shifting to single-app licenses for some users to reduce licensing costs, consult with a partner.
You can view the slide deck from the Inspire session. However, the video seems to have been taken down.
When Does the Dynamics 365 Attach Licensing Take Effect?
For existing customers, if your next licensing renewal is before October 1, 2019, your CSP or EA agreement will stay the same until the following renewal. If your next renewal is after October 1, 2019, the new licensing model will apply at that time.
For new or potential customers, if you purchase your Dynamics 365 licenses on or after October 1, 2019, this information will apply to you immediately. If you purchase before October 1, 2019, it will apply when you first renew.
To learn more about how this change will impact your business, please contact us.
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