Introduction to Microsoft Dynamics 365 licensing

Barb Borrowman - Technology Solutions Professional Dynamics 365

Microsoft Dynamics 365 will be released on November 1. In preparation for that, Scott Guthrie hosted a virtual event that provided partners and customers with a first look at our new cloud service with purpose-built apps that address specific business needs like sales automation, operations, and customer service. Using the links directly below, you can get the latest product release and partner training information. In this post, I'll provide you with an introduction to licensing for Microsoft Dynamics 365.

Read the October 11 announcement by Takeshi Numoto Watch the first look at Dynamics 365 Partner readiness blog post for Dynamics 365 Invite your customers to the November 1 First Look event in San Diego 

Two licensing models for Microsoft Dynamics 365

Microsoft Dynamics 365 has two licensing models:Full users vs Light users in Dynamics 365

1) Named user subscriptions, which classify users into two types: full user and light user

  • Full users need access to the full range of rich features and functionality in business apps. These are people in roles like sales, customer service, finance, and supply chain management. In the past, these users have been referred to as Pro Users or Power Users. In Dynamics 365 licensing, a full user is licensed with either a Dynamics 365 Plan or Dynamics 365 application subscription.
  • Light users typically consume data or reports from line of business systems and complete tasks like time and expense entry or HR record updates. In Dynamics 365 licensing, a light user is licensed with the Dynamics 365 for Team Members subscription.

2) Device licensing, available for the Enterprise edition, for shared device scenarios

New: Dynamics 365 Plan subscriptions

The hero offerings in Dynamics 365 are Plans. We are grouping together a set of apps with Microsoft PowerApps and Microsoft Flow for a robust offering to customers. The user who needs everything is rare, but many users require the flexibility to utilize pieces of functionality in multiple apps as they are needed. Plans provide that flexibility.

When compared to the Microsoft Dynamics CRM Online Pro license, there are differences to what is included in the Dynamics 365 Plan 1 applications. With any of the Plans, or with single Plan 1 business apps (Sales, Customer Service, Field Service, Project Services Automation), one portal license is included. The default storage has been increased from 5GB to 10GB per tenant, and additional storage received when adding users has been increased to 5GB per 20 Plan or app users. A 40-user company will now get double the storage - 20GB instead of 10GB.

Social Engagement will be included within each of the Dynamics 365 Enterprise Plans and the Enterprise Plan 1 business applications, and will not have the 10 seat minimum to unlock. Microsoft Dynamics Marketing, Parature, and Microsoft Dynamics Marketing Sales Collaboration will not be part of the Dynamics 365 service. We'll share news about these capabilities as the information is available.    

If you have been frustrated with the 5-user minimum for Dynamics CRM Online in the Cloud Solution Provider program, I have great news for you. With Dynamics 365, no minimums apply for commercial customers for Plan 1, any single business application in Plan 1, or the Team Members subscription. Minimums may apply for non-profit or academic customers. 

Dynamics 365 licensing - offer name changes

Enterprise Plan 1 offers partners more opportunity to expand to additional users or divisions within the customer with the additional business apps that are included. It also has the potential to increase deal size with additional Microsoft Azure services like Cortana Intelligence Suite. The new Team Members offer delivers organization-wide value that can help you expand the Dynamics 365 footprint for users who may not have been a part of the sales or service process previously.   

Dynamics 365 licensing model benefits

In line with the licensing changes I noted above with regard to Dynamics CRM Online Pro, the pricing structure changes as well, with the addition of the portal license and Social Engagement and the increase in storage for the Enterprise apps and Plan 1. For a customer that wants more than one app, Enterprise Plan 1 is a cost-effective solution.

For partners, selling Enterprise Plan 1 is an opportunity to expand to additional users or divisions within a customer with the additional apps. And, the inclusion of Microsoft PowerApps - part of the Microsoft common application platform along with Microsoft Flow and the Microsoft Common Data Model  -  means that you can create new mobile apps that harness data from Office 365, Sales, Operations, and third-party applications. This common application platform helps simplify data management and integration across apps and business processes. Understanding this common application platform is important for articulating the value proposition of Dynamics 365 to your customers.

Learn more about the Microsoft Dynamics 365 common application platform

Dynamics 365 introduces the benefit of lower marginal cost per unit as user counts increase on select subscriptions. Tiered pricing applies to Enterprise edition Plan 1 and Team Members, Enterprise Edition. While there are no price tiers on Enterprise edition Plan 2, the Plan 2 subscription counts toward Plan 1 price tiers levels. Plan 2 will be most applicable for users who need both Operations and a Plan 1 application or PowerApps.

Licensing programs for Dynamics 365

Microsoft Dynamics 365 will be available in the Cloud Solution Provider program for all Plans and business applications. There is no minimum except for the Plans or apps that include Operations, which has a 20-user minimum.

Dynamics 365 licensing programs

Partner resources

Use the links below to continue learning about Microsoft Dynamics 365 and your opportunities.

Watch our October 11 partner community call about Dynamics 365 licensing and pricing on demand Microsoft Dynamics on the partner portal Pitch the Dynamics 365 opportunity to your customers (download)

Comments about this blog post, or questions about the topic? Let us know in the Dynamics 365 Partners Yammer group.

Dynamics 365 Partner Community