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Dynamics 365 Licensing

Get an Unprecedented Bang for Your Buck with Dynamics 365 and a Redesigned Microsoft Dynamics Cloud Pricing Model

 

The Microsoft Dynamics cloud pricing structure is extremely flexible so that you can customize it to your needs. And, because Dynamics 365 is so much more affordable than traditional ERP systems, you will finally be able to give access to everyone in your organization who should have it. As a result, productivity will increase, insight into your business will improve and your digital transformation will take a big leap forward.

With Dynamics 365 it’s easy to get started now with just what you need.  But as your business grows, prepare to be amazed how well it adapts.

When it comes to Microsoft Dynamics cloud pricing, there are three main things you need to consider:

 

Microsoft Dynamics Cloud Pricing: User Types

Dynamics 365 offers two types of user licenses,” Team Members” and “Full Users”  If you’ve used other Microsoft Dynamics products in the past, you may have heard of “Light Users”; “Team Members” are very similar to this.

  • User Type Option 1: Team Member – Many your employees will likely be “Team Members.” These are people who will mainly use the system to view reports and do other basic tasks like entering their expenses and time, or updating their HR records. In other words, they only require read access, combined with some very specific editing capabilities. And, the best news is these licenses are very inexpensive.

However, please don’t let the low price tag or term “Light User” scare you. With Dynamics 365, anyone using a “Team Member” license still has the capability to access almost everything that a Full Users do, they just don’t have as much editing capability. That’s because in order to get the maximum return from your ERP and/or CRM solution, it needs accessible to the greatest number of people possible, and Microsoft understands that truth.

 

  • User Type Option 2: Full users – People who need total read/write access to the Dynamics 365 system. This might include customer service, sales or finance employees, as well as managers and executives. These full user licenses can be purchased either by the application (finance, operations, sales etc.) or by plan.

 

Microsoft Dynamics Cloud Pricing: Application Versus Plan Based

  • Licensing Type 1: Application – Have you bought business software fairly recently? If so, you probably already know with how this type of licensing works. In a nutshell, you simply get to use the features offered by the specific application for which you purchased a license, even if that application is part of a larger system.

Here’s an example, a customer service rep, who owns a customer service application license is not allowed to access the finance or sales applications. That said, please note that application licenses are “Full User” for that specific app and include any application specific business intelligence, extensibility and workflows.

  • Licensing Type 2: Plan based licensing – On the other hand, buying a plan for Dynamics 365 gives users access to most or all the functionality included in the system (depending on which plan you choose).
Microsoft Dynamics cloud pricing -- Application based pricing

Application Based Licensing

Microsoft Dynamics cloud pricing -- Plan based pricing

Plan Based Licensing

Things to Consider When Choosing Between Plan Based or Application Licensing

  1. Will you use two or more of the available Microsoft Dynamics 365 applications?
  2. Are you concerned about creating information gaps and silos within your organization?

 

Bottom Line: Usually, anyone who is opting for a “Full User”, not “Team Member” license should purchase Dynamics 365 by the plan. If you need “Full User” access to two or more of the system’s applications, it becomes much more cost-effective to purchase access by the plan instead of the app.

Available Editions of Dynamics 365

Dynamics 365 is currently available in two different editions.  Compare them in brief below.

Enterprise Edition

For businesses with 250+ users
  • Available through the Cloud and on premise
  • Includes Operations, Sales, Marketing, Customer Service, Field Service and Project Service Automation
  • Designed for companies with advanced financial and ERP needs
  • Sales and Marketing capabilities delivered via Adobe Marketing Cloud
  • For users who need extensive integrations and analytics
Learn more

Business Edition

For businesses with fewer than 250 users
  • Available through the Cloud only
  • Includes Financial app (Dynamics 365 for financials)*
  • Includes PowerApps
  • Sales and Marketing apps coming in Spring 2017
  • Designed for companies who’ve outgrown QuickBooks and other startup accounting software.
Learn more

When purchased as a cloud service, both editions provide instant-on, anywhere access, and predictable pay-as-you-go pricing.

*App is only available with this edition. The Enterprise edition’s financial capabilities are found within its operations app.

Suffering from information overload?

 

While the new Microsoft Dynamics cloud pricing structure provides unprecedented flexibility, increased visibility and some real savings potential, it can also seem quite confusing at first glance. So, if you have a headache from reading this far and trying to determine which plan(s), user type(s) and edition meets your needs, stop.

Do yourself a favor and reach out to us. Our experts will figure out which licensing combination will be the most cost-effective for you while your brain takes a breather.

Contact us!

Or, keep scrolling to learn more.

Microsoft Dynamics Cloud Pricing: Purchasing Dynamics 365 Business Edition

 

Currently, the only way to purchase the Business Edition of Dynamics 365 is with an application license for the Financials app or with “Team Member” licenses.  As soon as the Sales and Marketing apps are introduced in 2017, a plan option will be introduced for the Business edition.

All forms of licenses, including the upcoming plan license may be mixed and matched and your licenses will include the access to the software itself, unlimited database storage, unlimited file storage space, and an external accountant license.

Microsoft Dynamics Cloud Pricing: Purchasing Dynamics 365 Business Edition

 

Currently, the only way to purchase the Business Edition of Dynamics 365 is with an application license for the Financials app or with “Team Member” licenses.  As soon as the Sales and Marketing apps are introduced in 2017, a plan option will be introduced for the Business edition.

All forms of licenses, including the upcoming plan license may be mixed and matched and your licenses will include the access to the software itself, unlimited database storage, unlimited file storage space, and an external accountant license.

What’s the difference is between Plan One and Plan Two?

 

Plan One – Microsoft Dynamics CRM Online PLUS:

  • Microsoft PowerApps – A software program that allows you to create your own custom apps.
  • Customer Portal – An online place where employees, vendors and your other business partners can engage with one another.

Additional instances, portals and storage can be purchased separately.

 

Plan Two – For a slight price increase, get Plan One PLUS the operations app (financial, commerce and supply chain capabilities). For individuals in your organization who work in these areas, Plan Two is definitely their best bet.

Plan Two is the only way to get access to all the available Dynamics 365 Enterprise Edition applications. And, it also includes:

  • 2 sandboxes to use for testing.
  • 100 GB file storage.

 

It is also important to note, that with Plan Two, the functionality of your Microsoft PowerApps license is greatly increased, because with this plan you can build your own apps that extend across the entire system, including the apps not available in Plan One.

Need additional sandboxes or file storage? No problem. Those can be purchased separately at any time.

Microsoft Dynamics Cloud Pricing: Dynamics 365 Enterprise Application and “Team Member” Licensing

 

As we said earlier, in most cases, we would recommend one of the plans as the best way for you to purchase Microsoft Dynamics 365. A possible exception to this is the operations application because it offers all the capabilities Dynamics AX Enterprise users have enjoyed in the past. Just keep in mind that the app only license is offers somewhat less flexibility than Plan 2.

One of the best things about Dynamics 365, and its new Microsoft Dynamics Cloud Pricing structure is the fact that “Team Members” who have access to be operational app enjoy much of the same abilities as someone who has Plan Two or the Operations standalone app. Much of this functionality used to be exclusively available to Microsoft Dynamics AX Enterprise users, but with Microsoft Dynamics 365, you can enjoy all of this for a greatly reduced price.

Microsoft Dynamics Cloud Pricing: Tiers

 

Microsoft Dynamics 365’s tiered pricing makes an already affordable cloud solution even more budget friendly. Tiered pricing allows you to buy more and save. As you add “Team Members” and plan users, your per user costs become lower.

Tiered pricing is available for the Business Edition plan (once it’s released in 2017, Enterprise Plan One and Plan Two, as well as Enterprise “Team Members.

Business Edition “Team Members” do not qualify for tiered pricing.

To learn more about Dynamics 365 and which of it’s licensing options will give you the most value for the money, call (336)315-3935 or fill out the information request form on the right side of the screen to send us an email.

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