The pricing model for Microsoft Dynamics 365 applications is changing, following Microsoft’s financial year-end and annual Inspire conference. These price changes won’t impact some Dynamics clients, but it may have an impact for others.
Microsoft are changing their approach to licenses. Instead of bundles (Plans) being available as subscription licenses in their own right, there will be a more “A La Carte” approach. Applications will be licensed to organisations by user, giving organisations the freedom to only license users with the applications they need based on their role and responsibilities.
This new approach is built on a “Base + Attach” system. Users who need access to Customer Engagement and Unified Operations applications would be assigned a Base license to an individual application, and an Attach license to any other application they require. The base license will come in at full cost but adding additional licenses on top will be cheaper. The more expensive product from the stack will always be the base licence. For example, if a user is requires the Sales and Retail applications use, they will buy a Retail licence as base and a Sales licence as an attach licence. If the user also needs access to any other application, they will be assigned another attach licence.
The freedom of this new model means that licenses can be built and priced based on the specific responsibilities of each member of your organisation.
These changes to the license pricing model will affect any organisation with Dynamics 365 Plan subscriptions. Whether it’s Customer Engagement, Unified Operations or the full Dynamics 365 package.
The impact of this change will vary depending on the specific functional needs of the employees within an organisation, resulting in either cost-reductions or increases. But there is a window of time in which you can avoid your costs going up.
Yes – you can. If you’re going to face an increase in cost, you can mitigate this now. In fact, under Microsoft’s current licensing models, organisations facing these price changes have until October to take advantage of 3-year CSP agreements. Plainly put, if you sign up with a partner like QUANTIQ as your Cloud Solutions Provider on an agreement where we would manage your licenses for three years, this would keep the cost of your licenses as they currently stand for the next three years.
Microsoft will be releasing further information, along with the new prices, in September. In the meantime, if you’re concerned about changes to Microsoft’s licensing model impacting your organisation, please feel free to get in touch with us for a no-strings conversation and advice on the best steps for your organisation.