October 1, 2019 marks the beginning of Microsoft’s new licensing program for Dynamics 365. In today’s blogpost, we’ll be describing what’s changing and letting you know how it will likely affect your organization.
First, it is important to note that while the new pricing model kicks in on October 1, customers will not transition to the new model until their next annual renewal. For example, if you just completed the annual renewal of your licenses on August 1, your licensing fees will not change until August 1, 2020. If that’s the case, you may want to bookmark this blogpost so you can find it next summer!
Dynamics 365 will be moving away from the multi-application, one-size-fits-all Customer Engagement (CE) and Unified Operations (UO) plans. Instead, they will focus on the licensing of individual apps within those broad categories. The new model calls for Dynamics 365 CE and UO to each be sold as a base license with additional app licenses sold separately at a heavily discounted price.
In terms of actual dollars, the current CE/UO licensing fee of $115/$190 per user per month will be replaced by a $95/$180 per user per month base license price, plus a $20/$30 per user per month additional app license price. Let’s look at an example:
|# of Users||25||25||25|
|Monthly Cost under Current Plan||25 * $115 for CE license = $2,875||25 * $115 for CE license = $2,875||25 * $115 for CE license = $2,875|
|Monthly Cost under New Plan||25 * $95 for Sales App = $2,375||25 * $95 for Sales App = $2,375 +|
25 * $20 for Customer Service App = $500
Total = $2,875
|25 * $95 for Sales App = $2,375 +|
25 * $20 for Customer Service App = $500 +
25 * $20 for Field Service App = $500
Total = $3,375
|Change in Cost||You pay 17% less||You pay the same||You pay 17% more|
Outside of cost, what’s the benefit of this change?
A la carte licensing allows an organization to subscribe each of its employee to the specific apps that align with their functional roles and scenarios, adding or removing apps as roles grow and change over time. You’re now able to license the exact Dynamics 365 apps your organization needs, precisely when you need them. Apps can be easily mixed and matched to configure integrated solutions that align to your unique business requirements.
Are there any apps that are not affected by this program change?
Yes! The Sales Professional, Customer Service Professional, and Team Member licensing will remain unchanged. They are not part of the new a la carte program.
Is there anything I need to do?
All you need is awareness. When your annual renewal hits and the new pricing model kicks in for your organization, there’s a good chance your monthly payment will be different. It might be less, it might be more – we just don’t want you to be surprised when that happens.
What should I do if I have questions?
If you get your licenses from PowerObjects as part of our CSP licensing program, we’re here to help you prepare for the change. If you still have questions, please use the PowerCare Portal to get in touch with us.
If you get licenses directly from Microsoft or another Microsoft partner, we recommend contacting your account rep for licensing support. But… did you know that when you get your licenses through PowerObjects, you gain full and free access to our suite of PowerPack add-ons? Built to strengthen and expand the capabilities of Dynamics 365, these tools offer enhanced capabilities and user experiences, such as integrated telephony, dynamic surveying, and marketing campaign automation. And you get all of it for the same cost you’re paying today! Learn more and contact us if you’re interested.
That’s it… for now. Licensing for Power Apps and Flow will be changing down the road, as well. But don’t worry, we’ll blog about it as the change gets closer. In the meantime, happy licensing!