With the introduction of Dynamics 365, Microsoft has reinvented its approach to pricing and packaging – saving you money, offering greater flexibility, and extending actionable insights across the entire organization. If you're trying to get the most bang for your budget buck, this new structure is like a ton of dynamite.
Microsoft Dynamics 365 licensing is designed to be personalized. With apps, plans, and tiered pricing you can pick the combination that makes the most sense for your organization. With such an attractive price point, it just makes sense to make sure as many members of your organization have access to this new generation of intelligent business applications as possible; enabling greater productivity, delivering deeper insights, and accelerating your business' digital transformation.
With Dynamics 365 you can start now, start small (with just the licenses you need), and watch as it grows with you.
Microsoft Dynamics 365 Licensing: Users
Named user subscriptions for both Dynamics 365 Enterprise Edition and Dynamics 365 Business Edition fall under two categories: “Full Users” and “Team Members” (i.e. light users).
Most employees in your organizations will probably be light users, or in Dynamics 365 terms, "Team Members". Team Members predominantly look at reports and perform light tasks such as entering time and expenses or updating HR records. They usually only need read access, plus a few editing capabilities for less complex tasks across all Dynamics 365 apps. This lighter level of activity comes with an incredible advantage — Microsoft is practically giving these licenses away!
However, unlike other Tier 1 business systems, a 'light user' price point doesn't mean light levels of access, usability, or visibility to everything Dynamics 365 has to offer. Users with Team Member licenses still have the opportunity to access nearly everything a Full User can. That's because Microsoft understands that the only way to see true value from your business solution is to make sure it's in the hands of as many people as possible.
For Team Members, you can have a mix of user and/or device subscription licenses.
One team member can access multiple devices
Multiple team members can have access to one device
The power users or admins in your organization will most likely need to leverage the majority of business applications found in Dynamics 365 with full read/write access. These "Full Users" might include sales, customer service, finance employees, controllers, executives, and managers. Full Users can be licensed either by a stand-alone application or by one of two plans. For example, a Customer Service Manager may only need full access to the Customer Service application while the CFO would need full visibility and would be better off with one of the plans.
But let's cut to the chase – for a Full User is it more cost-effective to go the applications route or to choose one of the plans? While there are many variables to consider, generally once a Full User needs access to two or more applications it is much more cost-effective to go with one of the plans. Plan 1 contains all of the functionality that was formerly found in Dynamics CRM while Plan 2 features all of the functionality found in both Dynamics CRM and Dynamics AX.
Application Based Licensing
If you are familiar with the way most business applications are licensed today, then you're already familiar with how application-based pricing works in Dynamics 365! It's pretty straight forward – you only get access to the functionality in the application you have the license for. For example, a member of your sales team who only has a license for the Sales application will not be able to access any of the functionality in the Customer Service application. However, it is worth noting that each application license is considered "Full Use" and comes with workflows, embedded business intelligence, and application specific extensibility.
While we would strongly encourage you to consider one of the available plans if you think your end-users may need access to more than one application, this is certainly a pricing model to consider for specific users.
Plan Based Licensing
In most cases, we would encourage any user that is not a Team Member to explore one of the available plans for Dynamics 365. Based on years of experience working with a wide variety of companies, we feel confident that most Full Use individuals will realistically need to access more than one application to complete their daily tasks. While the application based approach is appropriate for a select set of users, this traditional licensing model creates silos or even gaps in information for the majority of users. These issues are eliminated with plan based pricing.
To put it bluntly, if your end-users need access to functionality found in more than one application in Dynamics 365, it is far more expensive to purchase individual application licenses than one of the plans. By selecting one of the flexible, extensible plans your end-users can take full advantage of everything Dynamics 365 has to offer at significant savings to the organization.
Give Your Brain a Break
Microsoft's new licensing options offer incredible flexibility, a greater opportunity to spread insights across your organization, and some serious savings potential. But if your brain hurts from trying to mix and match across plans, apps, and team members – STOP. Step away from the calculator and drop us a line. We'll figure out how to make sure you get the best deal, while you give your brain a break.
Microsoft Dynamics 365 Licensing: Enterprise Edition
If you choose to implement, upgrade, or migrate to Dynamics 365 Enterprise Edition there are several ways to get the most value from your investment.
A Brief Review...
Dynamics 365 Enterprise Edition is optimized for organizations with 250+ employees and is a combination of two solutions: Dynamics AX and Dynamics CRM Online. In doing research on Dynamics 365 you may see references to Dynamics 365 for Operations – this is simply the new name for what was formerly known as Dynamics AX. All functionality found in Dynamics AX can still be found in the Operations app. All the other apps found in Dynamics 365 Enterprise Edition stem from Dynamics CRM Online.
If you'd like to learn more, please visit our page dedicated to the Enterprise Edition.
Plan Licensing for Dynamics 365 Enterprise Edition
Dynamics 365 Enterprise Edition can be licensed by plan, Team Member, or application. All forms of licensing can be mixed and matched to ensure you get the most coverage for the lowest cost. In most cases, we would strongly recommend either Plan 1 or Plan 2 for anyone who is considered a Full User. While both plans include a production instance, at least one non-production/sandbox instance, and a significant amount of database storage there are some key differences between Plan 1 and Plan 2.
Plan 1 in Dynamics 365 Enterprise Edition encompasses all the applications that were formally found in Dynamics CRM Online. This means Plan 1 covers every application except Operations. Plan 1 also allows for some extensibility through the use of PowerApps. Extensibility in Dynamics 365 is contextual – so Plan 1 users will only be able to create custom business applications that span the apps covered under Plan 1.
In addition to the instances and database storage present in both plans, Plan 1 also includes access to a portal to extend engagement across customers, partners, and employees. Additional portals, instances, and storage are available as add-ons.
One of the other key differentiators to consider in Plan 1 is the ability to take advantage of tiered pricing. Tiered pricing is only available in Plan 1 and Enterprise Team Member licenses, although Plan 2 users do count towards your total number of seats.
For just a small (and we mean small) increase in price, you can have everything in Plan 1, plus access to financial, supply chain, and commerce functionality. That's because Plan 2 is essentially Plan 1 + the Operations app. So, for those members of your organization that need access to those operational capabilities, it's definitely the way to go.
Of course, Plan 2 also comes with full extensibility using PowerApps. This is an important distinction if you are considering just using the Operations app for standalone licenses. Remember, extensibility through PowerApps is contextual, based on which applications you are licensed to use. Only Plan 2 offers access to every application in the Enterprise Edition. In addition to the service offerings found in Plan 1, Plan 2 also offers two non-production sandboxes and 100 GB of file storage. Additional sandboxes and storage options are available as add-ons.
Step Up Your Savings With Tiered Pricing
Buy more and save more with Dynamics 365. With this new licensing offer, as the user count increases on Team Members and select plans, the marginal cost per user decreases – making an already affordable cloud solution even better!
Tiered pricing applies to Enterprise Edition Plan 1, Business Edition Plan (available in 2017), and Team Member subscriptions for the Enterprise Edition. Individual app subscriptions, Enterprise Edition Plan 2, Business Edition Team Members, and Sunrise industry extensions for Dynamics 365 do not qualify for tiered pricing.
Team Member and Application Licensing for Dynamics 365 Enterprise Edition
Application and Team Member specific licensing are additional ways to share knowledge and provide valuable insights across your entire organization. When it comes to Dynamics 365 Enterprise Edition, both options present different strengths for particular users.
While in almost every case we would suggest a Full User consider a plan before purchasing stand-alone application licenses, the Operations app is one of the few exceptions, as it contains all the functionality "Enterprise Users" enjoyed in Dynamics AX (AX7). That being said, while there is a minimal price difference between the Operations app and Plan 2, there is a decrease in flexibility associated with going the app-only route.
Users that would be considered Team Members and who are able to take advantage of the Operational app present one of the greatest opportunities for an organization to save some serious cash. If you refer to the chart below, you will see that Team Members in this situation have nearly the same capabilities as a user who is on Plan 2 or using the stand-alone Operations app. Essentially, Team Members can perform nearly all the tasks once reserved for "Enterprise Users", at a fraction of the cost – especially when you factor in tiered pricing opportunities.
Microsoft Dynamics 365 Licensing: Business Edition
Specifically designed for smaller organizations, there are a few ways to make sure that Dynamics 365 Business Edition is the perfect fit for your company.
A Brief Review...
Dynamics 365 Business Edition is optimized for organizations with 10-250 employees (particularly the 10-100 employee segment). Initially, only the Financials app and Team member pricing will be available. However, this does include the use of PowerApps. Once the Sales and Marketing apps become available, a plan with tiered pricing will be introduced. In researching Dynamics 365 you may come across the term "Dynamics 365 for Financials". It is important to note that this app is only available in the Business Edition, as financial functionality falls under the Operations app in the Enterprise Edition.
If you'd like to learn more, please visit our page dedicated to the Business Edition.
Team Member and Application Licensing for Dynamics 365 Business Edition
Dynamics 365 Business Edition can currently only be licensed by Team Member or by the Financials application. Once the additional Sales and Marketing applications are launched in 2017, a plan with tiered pricing will be making its debut – however unlike the Enterprise Edition, Team Member licenses are not eligible for tiered pricing. All forms of licensing can be mixed and matched, including the plan license once it is available. If you decided that Dynamics 365 Business Edition is the right choice for your team, your licenses include one production instance, unlimited file storage, unlimited database storage and an external accountant license.
MICROSOFT DYNAMICS 365 IS YOUR FUTURE
AND SUNRISE IS YOUR CLOUD SOLUTION PROVIDER
One Vendor for Industry Solutions, Support, and Billing
With the Cloud Services Provider (CSP) model, Tier 1 certified Microsoft Business Partners like us are a one-stop shop for customers who are interested in purchasing and deploying Microsoft intelligent cloud solutions like Dynamics 365, Power BI, PowerApps, and Cortana Intelligence. To put it plainly, we would be your first point of contact for help with planning, implementing, and supporting end-to-end cloud solutions with embedded industry best practices and business intelligence capabilities.
Your finance department may even throw you a party when they realize that by partnering with Microsoft and Sunrise, you'll only have to deal with one bill. Yup, just a single bill that covers all your Microsoft solutions as well as add-on industry solutions and support services provided by Sunrise. Plus, Dynamics 365 is really flexible. You can choose how you want to be billed (annually or monthly) and you're not locked into your original seat quantity. Feel free to add or remove seats as needed – it's all about what makes the most sense for your company.