Dynamics 365 Pricing Changes bring an opportunity to reduce costs

by Aug 2, 2019Dynamics 365 Fundamentals, News and Updates

Microsoft stated that as of October 1, 2019, Dynamics plan style licenses will no longer be available to subscribers. Instead, customers will choose from an ala carte licensing plan. A “base license” will be sold with “attach licenses” available. These “attach licenses” will be heavily discounted. Microsoft feels that this move from “one-size-fits-all” Dynamics 365 licensing plans will focus on better providing customers with the specific Dynamics 365 applications that meet their organization’s unique needs. These Dynamics 365 Pricing Changes bring an opportunity to reduce costs.

Customers will now be able to buy the apps they need as opposed to buying the whole plan. This way, customers don’t get stuck paying for capabilities they don’t need or use. Although the new pricing model is on a per-app basis, the plan still allows for bundling multiple apps. Deals that close prior to October 1, 2019, however, should use the existing “plans and apps” model.

  • A base license must first be purchased. Attach licenses may then be purchased.
  • Base and Attach licenses are identical in their core capabilities. The only differentiation is in price.
  • Each user may only have one Base license, but hey may have as many Attach licenses as needed.
  • Attach licenses may only be assigned to a user with a prerequisite Base license.
  • When multiple Business Applications are purchases, the Base license must be the higher-priced license.

For example, a customer could buy a Sales Customer Engagement license and add additional functions such as Field Service for an additional fee. The image above indicates that the pricing would be $95 for the base license, plus $20 for each attach license.

Microsoft has not released specifics on the pricing details and has stated that a licensing guide will be published as “soon as they can.” Due to partner feedback regarding the complexity of the new pricing plan, Microsoft may be making some adjustments.

Microsoft has been fielding many concerns from existing customers and prospects about what the Dynamics 365 pricing changes will mean to their software investments. Many partners have also expressed concerns about managing this quickly approaching transition.

Microsoft has confirmed the pricing and licensing updates coming to Dynamics 365 and the Power Platform in October. There will be further details to come from Microsoft.

To improve your understanding of how to license Microsoft Dynamics 365 visit the current Microsoft Dynamics 365 Licensing Guide.

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