2023 Dynamics 365 Pricing & Licensing Guide

Dec 08, 2023 Aiswarya Madhu

The Microsoft Dynamics 365 suite offers an expansive array of applications, each with its licensing and pricing nuances. Understanding the Dynamics 365 pricing and licensing models is pivotal for businesses to optimize their investments effectively. The interplay between features, user needs, and costs demands careful analysis.

Our comprehensive guide dives into the crux of cost of Microsoft Dynamics 365 and licensing structures, helping you understand why Microsoft Dynamics 365 implementation is the right choice

Microsoft Dynamics Licenses

License Type Description Features Included Ideal Use Case
User License Per-user access Access for specific users without considering device logins Professional and Enterprise options available. Professional users requiring consistent access across devices.
Device License Per-device access Access shared or assigned to specific devices Ideal for shared devices or scenarios where multiple users access from a single device
Full Application Access Primary licenses on a per-tenant basis Includes access to Dynamics 365 Marketing and Customer Service Comprehensive access to multiple Dynamics 365 applications
Cross Application Access Situational or alternative to per-app assigned access Flexible licensing for varied or evolving business needs Offers adaptability in licensing for changing usage scenarios
Capacity Licenses Based on annual usage Allocated based on data storage, transaction volume, customer profiles, routing requests, etc. Best for occasional or limited use of Dynamics 365 applications
Professional Core features accessible Basic access to functionalities, suitable for professional use Suitable for users needing core features but not requiring full capabilities
Enterprise Full access to all available features Complete access to all features and capabilities within the Dynamics 365 application Comprehensive access for users needing full capabilities
Team Members Limited tasks and functions access Users can perform specific tasks such as building reports, sharing data, getting insights, and data entry Designed for executive users needing limited access for particular tasks
Essential Users Basic features of Dynamics 365 Business Central Provides access to fundamental features for managing business operations within Dynamics 365 Business Central Suitable for users needing basic functionalities in Business Central

Explore how Microsoft Dynamics 365 for Retail addresses 6 key challenges faced by the industry.

Dynamics 365 Pricing Structure

Dynamics 365 Application First Dynamics 365 App Pricing (Per User/Month) Subsequent Qualifying Dynamics 365 App Pricing (Per User/Month)
Business Central Essentials From £57.50 From £57.50
Business Central Premium From £82.20 From £82.20
Customer Service Professional £41.10 £16.40
Sales Professional £53.40 £16.40
Sales Enterprise £78.10 £16.40
Sales Premium £111 -
Microsoft Relationship Sales £108.34 -
Microsoft Viva Sales £32.90 -
Finance £147.90 £24.70
Marketing From £1,232.90 From £616.50
Supply Chain Management £147.90 £24.70
Guides £53.40 -
Intelligent Order Management From £246.60 per 1,000 orders lines/month -
Customer Service Enterprise £78.10 £16.40
Field Service £78.10 £16.40
Remote Assist £53.40 £16.40
Project Operations £98.60 £24.70
Human Resources £98.60 £24.70
Customer Insights £1,232.90 From £821.90
Customer Voice From £164.40 (52,000 survey responses per tenant/month) -
Commerce £147.90 £24.70
Fraud Protection £754.10 per tenant/month -
Dynamics 365 Remote Assist From £100 per user/month £52 per user/month
Dynamics 365 Layout - £76 per user/month
Dynamics 365 Sales Insights £40 per user/month -
Dynamics 365 Customer Insights £1200 per user/month -
Dynamics 365 Customer Service Insights With Dynamics 365 for Customer Service Enterprise: £60 per user/month Non-Dynamics Customers: £60 per user/month

Note: The First Dynamics 365 App Pricing, on a per-user, per-month basis, refers to the cost incurred for the initial application that a user subscribes to within the Dynamics 365 suite. This cost is levied individually for each user accessing the application.

Subsequent Qualifying Dynamics 365 App Pricing, also on a per-user, per-month basis, applies to additional applications that the same user subscribes to within Dynamics 365 after the first one. Once the user acquires the primary app, subsequent applications subscribed to are charged at a reduced rate, encouraging the integration of multiple Dynamics 365 applications by the same user.

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Tailor Dynamics 365 Licensing to Specific Business Requirements

Dynamics 365 offers a wide range of licensing options to cater to the diverse needs of businesses. Understanding these D365 licensing options and tailoring them to your specific requirements is crucial for optimizing your investment in the platform. Here's a detailed breakdown of the key licensing approaches:

1. Modular Licensing Approach:

Dynamics 365 applications are modular, meaning you can purchase licenses for individual applications or suites that best fit your business needs. This approach allows you to start with core functionalities and scale up by adding modules as your business grows or new requirements emerge.

Imagine a retail company starting with Dynamics 365 Sales to manage their customer interactions. As the business grows, they might add Dynamics 365 Marketing to enhance their outreach strategies. This modular approach enables them to pick and choose applications, gradually expanding their capabilities without unnecessary expenses.

2. Hybrid Licensing Model:

Dynamics 365 offers a hybrid licensing model that combines on-premises and cloud-based licenses. This provides flexibility for businesses that want to leverage both deployment options. On-premises licenses are typically used for core applications requiring more control and security, while cloud-based licenses are ideal for applications requiring scalability and accessibility.

A manufacturing firm opts for on-premises licensing for their inventory management (on-premises for more control). Simultaneously, they use cloud-based Dynamics 365 Field Service to manage service teams across locations (cloud for scalability). This hybrid model optimizes both security and accessibility.

3. Pay-as-You-Go Licensing:

Dynamics 365 offers a pay-as-you-go licensing model through Azure subscriptions. This allows businesses to pay monthly based on their actual usage, providing cost-effectiveness for companies with fluctuating requirements or seasonal demands.

An e-commerce site experiences varying traffic during peak seasons. They leverage Dynamics 365 through Azure subscriptions, scaling resources as needed during high-demand periods. This flexible pay-as-you-go model allows them to manage costs based on actual usage.

4. User Roles and Permissions:

Dynamics 365 licenses come with different user roles and permission levels. This allows you to tailor access to specific features and functionalities based on individual user needs and responsibilities. This ensures efficient resource allocation and prevents unauthorized access to sensitive data.

In a healthcare setup utilizing Dynamics 365 for Customer Service, precise user roles are pivotal. Doctors gain access to patient records, ensuring comprehensive care, while administrative staff manage appointments. This customization ensures compliance with regulations like HIPAA, averting potential fines. By tailoring access, licensing costs remain efficient, granting users only necessary functionalities. This focused access reduces training expenses, enhances security, and optimizes resources, aligning operations with compliance while maximizing the value of licensing investments.

5. Add-Ons and Extensions:

Dynamics 365 offers a wide range of add-ons and extensions that expand the platform's capabilities beyond its core functionalities. These add-ons can be purchased separately and tailored to specific industry or business needs.

A financial institution employs Dynamics 365 Customer Insights to understand client behavior. They integrate a fraud protection add-on, enhancing security measures within the same ecosystem. By starting with Customer Insights' first-user pricing, subsequent additions like fraud protection allow tailored security at a fraction of a new full-suite cost. This seamless extension minimizes expenses, leveraging subsequent Microsoft Dynamics pricing for specialized functionalities within Dynamics 365, optimizing both security and expenditure.

6. Capacity-Based Licensing:

For certain applications, Dynamics 365 offers capacity-based licensing, where the cost scales based on the number of users, data storage requirements, or transaction volume. This approach ensures you pay only for the resources you utilize.

A retail chain adopts Dynamics 365 Commerce, and during peak sales like holiday seasons, the licensing dynamically scales to handle the surge in transactions. As they experience high customer traffic, the system seamlessly accommodates increased order volumes without incurring extra fees. This adaptive licensing model optimizes costs, ensuring they pay only for the resources utilized during periods of intensified activity, maintaining cost-efficiency even during peak times.

Here are some additional tips for tailoring your Dynamics 365 licensing:

  • Analyze your business needs: Clearly identify your business goals and objectives to determine which applications and functionalities are most essential.
  • Evaluate your user base: Define the number of users and their roles to determine the appropriate license types and permission levels.
  • Consider future growth: Choose a licensing model that accommodates potential growth in your user base and data volume.
  • Consult with a Microsoft partner: Leverage the expertise of a Microsoft partner to assess your needs and recommend the most suitable licensing options.

Discover the optimal timing for configuration and customization in Dynamics 365 Customer Engagement (CE). Explore the nuances of when to configure and when to customize within D365 CE to streamline processes, enhance functionality, and maximize your CRM system's efficiency.

Partner with Dynamics 365 Service Providers for Expert Guidance

  • Customized Roadmap: Consultants provide personalized roadmaps aligning Dynamics 365 capabilities with your business goals. They suggest tailored licensing options that directly serve your unique operational needs.
  • Utilization Analysis: Conduct a deep analysis of your license usage patterns, identifying underutilized licenses or potential overages, optimizing the cost-effectiveness of your plan.
  • 24/7 Monitoring: Offer continuous monitoring and prompt issue resolution, ensuring uninterrupted operations and mitigating any potential downtime, thereby maximizing the ROI of your investment.
  • Industry Compliance: Ensure adherence to sector-specific regulations and standards, guaranteeing scalability while remaining compliant with evolving legal frameworks.

For precise guidance in navigating Dynamics 365 licensing intricacies and optimizing your investment, connect with our seasoned experts at Nalashaa Digital. Whether it's seamless D365 implementation, tailored integrations, or proactive support, our team is equipped to align Dynamics 365 with your unique business needs. Maximize the potential of your Dynamics 365 ecosystem with our comprehensive expertise, ensuring efficient operations, compliance, and continuous growth. Get in touch with us today to unlock the full power of Dynamics 365 for your enterprise.

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