Microsoft Dynamics 365 License Changes

Microsoft Dynamics 365 is Microsoft’s most trusted business solution providing CRM and ERP Solutions in the cloud, premises or Hybrid. Dynamics 365 has been on the market for around few years, and Microsoft is constantly Improvising the product and modules with further development.  

In July 2019, Microsoft announced that there will be licensing changes for Microsoft dynamics 365 with affect from Oct. 2019. These prices will affect the current client who are on month to month CSP agreement. For the client that or on yearly or multi yearly agreement these prices change at the time of contract renewal. 

Microsoft is constantly developing its Dynamics 365 Offering, for instance with the introduction of Mixed Reality and AI products, while aiming to enable you as a customer to better customization your licensing.  This Improvement gives you the possibility to purchase only the dynamics 365 business applications that are most relevant for your business. 

The new licensing model requires each to be equipped with a basic license. This is the license for the work area in which user works exclusively or mainly. These are the new “Attach” licenses, which can then be purchased at a fraction of standard price.

Effective from October,2019 Buying individual apps will be very similar to how it’s done today. But If you need more than one app, you could create your own “attach” by Adding other apps to your main app. 

This Changes may seem simple, but they do complicate your dynamics 365licenisng calculation. Imagine for each of your users you will have to step through which combination of apps they need, and also of some apps, at which level they should be purchased. 

Dynamics 365: Customer Engagement Plan 

According to the new plan, with effect from October 2019, does not have Customer Engagement plan. For users who need capabilities across two or more role-based Dynamics apps, a base app license will be selected and with individual apps licenses attached at a reduced rate to reflect usage needs. 

For Existing Agreement renewal, administrators will need to Transition any users currently licensed with the Customer Engagement Plan to this new model as Plan SKUs will no longer be available.This may create an immediate subscription saving if some users can be moved from a Plan to a single app that will cover their usage needs. In instances where a single app is attached to the base license, the total license cost will be the same rate as a Plan.

CRM Online Transitional offer 

This enables CRM online customers to migrate to Dynamics 365 licensing model and transact at reduced price. The transitional licensing ended in November 2019, upon renewal these licenses will automatically be migrate to standard commercial license for dynamics apps and billed at the regular rate. 

Users who have subscribed to Customer engagement plan on this offer will be to re-licensed with base app and if needed attach additional licenses following the removal of plan licenses as referenced above. 

Dynamics 365 SMB Offer 

These promotional license SKUs will no longer be available for subscriptions renewal form December 2019. On renewal, licenses will be migrated to the standard licenses and rates. This would cover- 

·      Dynamics 365 for Sales Enterprise (SMB Offer)

·      Dynamics 365 for Sales and Customer Service, Enterprise Edition (SMB Offer)

·      Dynamics 365 for Team Members (SMB Offer)