Microsoft Licensing – Changes are Coming!

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!

What’s changing?

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 Users252525
Apps UsedCE-SalesCE-Sales

CE-Customer Service

CE-Sales

CE-Customer Service

CE-Field Service

Monthly Cost under Current Plan25 * $115 for CE license = $2,87525 * $115 for CE license = $2,87525 * $115 for CE license = $2,875
Monthly Cost under New Plan25 * $95 for Sales App = $2,37525 * $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 CostYou pay 17% lessYou pay the sameYou 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!

Don't Miss Out On What Our CSP Program Has to Offer

In this blog you will learn how PowerObjects' CSP Program can help you get more out of Dynamics 365 and your Microsoft Cloud licenses! We interviewed Cecilie Norgaard, Microsoft Cloud by PowerObjects Program Director, to get the high level details on everything you need to know.

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What is the CSP Program? Why do we have it?
CSP stands for Cloud Solution Provider, and it’s a Microsoft licensing program, that allows partners, like PowerObjects, to resell Microsoft Online licenses (Dynamics 365, Office 365, Azure, etc.). PowerObjects decided to become a CSP so that customers would have one place to go for all of their Dynamics 365 needs, from licensing, to implementation, education, add-ons, support, etc. We also support Office 365 and Azure.

What types of companies are a good fit for this program?
Any company whose Office 365 is located in the US, UK, or Canada and is either currently purchasing licenses directly from Microsoft, or any new customer to Office 365 or Dynamics 365. We also have a special license, only available through CSP, for customers who need under 25 Dynamics 365 for Sales licenses, or 50 Dynamics 365 for sales or customer service licenses. Customers that are purchasing through an EA (Enterprise Agreement) would not be a good fit

Does the CSP Program have any relationship to our four pillars? If so, explain which ones.
Well, licensing is the base of the software. In order to get the software, you need a license. So in that way, it relates to all of them!

What are the benefits of being in the CSP Program?
1. Ability to bundle all your Dynamics 365 licenses and Cloud subscriptions
2. Keep it simple by centralizing all of your billing through PowerObjects
3. Break and fix support provided by the largest Dynamics 365 support desk outside of Microsoft
4. Full access to PowerObjects’ PowerPack add-ons
5. Discounts on PowerObjects’ world-class public educational offerings

Why are we the best seller/supplier/partner for CSP in the world?
We provide that extra customer service and benefits! Customers particularly enjoy the free PowerPack add-ons and the discounts we provide on our education offerings. They also like that they can reach out to the PowerObjects billing team with any questions or issues and get a quick response.

Can you describe the process in detail? If I were to order today what would the steps look like.
1. Send you (customer) a quote, to ensure the licenses are agreed upon before proceeding
2. Sign CSP agreement, stating that we can bill you for licenses
3. Accept the reseller invitation, in your Office 365 environment (if you have one, or we can set one up for you, if you’d like)
4. Ask you to log into our PowerCare portal to add your credit card (if paying by credit card)
5. Add licenses to your account
6. Cancel existing Microsoft licenses (if applicable)
7. Show you how to log into our PowerCare portal, to add/remove licenses from your subscription going forward

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There you have it, everything you need to know about the CSP Program! For more information on how you can get more out of your Dynamics 365 and your Microsoft Cloud licenses click here. Remember that no matter where you are in your Dynamics 365 journey we are here to help you get more out of your investment.

Happy Dynamics 365'ing!