Dynamics 365 Licensing Update

Effective October 2019, Dynamics 365 will be moving from multi-application, one-size-fits-all Customer Engagement (CE), Unified Operations (UO), and Dynamics 365 Plans to focus our efforts on the licensing of individual applications. A la carte licensing allows you to subscribe to the applications that align with your functional roles and scenarios, adding or removing applications as your company grows and changes over time. You can license the Dynamics 365 applications that you need, when you need them. 

Dynamics 365 will continue to provide technology solutions that drive measurable results, an industry-leading product roadmap, out-of-the-box interoperability with other Microsoft technology, and the support needed to realize fast time-to-value.  

Please note, Dynamics 365 subscribers may continue using PowerApps and Flow to extend and customize their Dynamics 365 applications. However, Dynamics 365 Enterprise licenses will no longer include general purpose PowerApps and Flow use rights. In other words, a Dynamics 365 Enterprise application user can continue to run PowerApps applications within their Dynamics 365 environments but running PowerApps applications in non-Dynamics 365 environments will require an additional PowerApps license. An additional Flow license will also be required to run Flows that do not map to a Dynamics 365 application context. 

If you, or your organization’s contact administrator, have a Dynamics 365 licensing agreement that is scheduled to renew on or after October 1, please reach out to your Microsoft sales representative and/or your partner to discuss the transition. They will work with you to find the best solution for your organization. 

Key Details

Effective October 2019:

  • CE, UO, and Dynamics 365 Plans will no longer be offered.

  • Individual Dynamics 365 CE and UO applications will be available for subscription as Base and Attach licenses (see details below).

  • Finance and Operations will be split into two individual applications: Supply Chain Management and Finance.

Base and Attach License pricing* (Per User Per Month, except for Marketing which is Per Tenant Per Month):

Base and Attach License pricing

How it works: First, subscribe to a Base license for each Dynamics 365 user within your organization. Then, for users who require more than one application, add one or more Attach licenses to each Base license. For example, if you have an individual user who requires both Sales and Customer Service Enterprise application functionality, you may subscribe to the Sales Enterprise Base license for $95 and add the Customer Service Attach license for $20. The total Per User Per Month (PUPM) rate for this user is $115.

If you would like to subscribe to both a Base and an Attach license for a user, you must subscribe to the higher priced application as the Base license. For example, if you would like to subscribe to a Retail license and a Customer Service license for a user, you must subscribe to the Retail license as the Base license ($180) and the Customer Service license as the Attach license ($20) for that user, for a total of $200 PUPM.

Frequently Asked Questions:

Q: What if a user only needs one application?
A: You may subscribe to one application for that user at the Base license price for that application.

Q: Can I subscribe to a UO Base license and a CE Attach license or a CE Base License and a UO Attach license?
A: Relationship Sales solution, Relationship Sales solution Plus, Talent, Project Service Automation, and Marketing applications may only be subscribed to as Base licenses. You can subscribe to CE or UO Attach licenses in addition to these Base licenses. You may subscribe to all other applications as Base or Attach licenses, provided that the higher priced application is the Base license.

Q: Can Microsoft Relationship Sales solution be purchased as a Base license?
A: Yes. To purchase an Attach license the Microsoft Relationship Sales solution must be the higher priced license.

Q: Can Microsoft Relationship Sales solution be purchased as an Attach license?
A: No.

Q: Will Unified Operations applications continue to have minimum purchase requirements?
A: Supply Chain Management, Finance, and Retail will continue to have a 20-user minimum purchase requirement. Talent has a minimum 5-user minimum purchase requirement.

Q: Will this change affect Finance and Operations, Retail, and Common Data Service capacity add-ons: Storage, Operations - Order Lines, and Sandboxes?
A: No, the capacity add-ons will continue to be offered in their current form and at their current pricing.

Q: Will Team Members, Operations – Activity, Operations – Device, or Customer Engagement Device be impacted by this change?
A: No, these licenses will continue to be offered in their current form and at their current pricing.

Q: Will Business Central be impacted by this change?
A: No, these licenses will continue to be offered in their current form and at their current pricing.

More Great Reasons to Renew

Position for the future.

A long-term investment in Dynamics 365 will keep your digital transformation on the cutting edge for years to come. The Dynamics 365 product innovation roadmap is industry-leading, with heavy investments in artificial intelligence (AI) and machine learning, including:

  • AI functionality that enables your sellers to deliver personalized messages to the right buyers at the right time and powers features that help sales managers track and coach seller performance. 

  • Out-of-the-box AI models that help customer service agents determine next-best-actions.   

  • Intelligent virtual agents that are easy to build.  

  • IoT alerts and visualizations that help field service technicians diagnose and fix problems. 

  • Customer payment predictive AI to support your collection efforts and help to improve cash flow. 

  • IoT intelligence, asset management, and planning capabilities to optimize supply chain management.

Drive results.

Dynamics 365 drives measurable results. An independent analysis from Nucleus Research revealed that for every dollar spent on Dynamics 365 solutions, companies realize an average of $16.97 in returns. According to the report summary, “this is significantly higher than the average for both enterprise resource planning (ERP) and customer relationship management (CRM), which deliver, on average, $7.23 and $8.71 respectively.”

Leverage Microsoft interoperability.

Dynamics 365 application extensibility and out-of-the-box interoperability with existing Office 365, LinkedIn Sales Navigator, Azure, and other popular Microsoft technologies, improve your efficiency from day one: 

  • Each Dynamics 365 application is extensible and can be easily mixed-and-matched with other Dynamics 365 applications to configure integrated solutions that align to distinct business requirements. 

  • Dynamics 365 for Sales is interoperable with LinkedIn and Office 365 enabling sales personnel to discover more leads and build stronger connections with prospects and customers.

  • Dynamics 365 users can tap into Power BI’s rich visualization and business intelligence capabilities, Azure-based services, and the extending capabilities of hundreds of custom-built PowerApps. 

  • Dynamics 365 users have access to Office 365 online and offline Outlook add-ins.

  • Dynamics 365 is interoperable with Microsoft Teams, Excel, and OneNote.

  • Microsoft’s Common Data Model provides data structure and alignment across Microsoft products, allowing an easy exchange of data between applications. 

Realize business value faster.

Microsoft offers pre- and post-purchase support for fast Time-To-Value:

  • The FastTrack for Dynamics 365 Program provides technical advisory services via technical talks, hands-on workshops, and 30-minute phone consultations, from pre-sales to the solution delivery phase.

  • Microsoft Technical Support Engineers are available to assist with reactive support issues that may occur during your Dynamics 365 deployment.

  • Customer Success Managers provide support to premiere enterprise customers. They help them determine goals, facilitate software adoption, troubleshoot issues, and more.

  • Microsoft Services offers fixed-fee packages to support you and your team before, during, and after deployment, such as workshops and assessments to help you build out new, transition, or partner-led solution plans.