Dynamics 365 for Finance and Operations License Changes

On 1 October 2019, Microsoft Dynamics 365 for Finance and Operations license plans will no longer be available. Instead, organisations will select the modules and capability they need and only pay for this. Microsoft feels that this move from ‘one size fits all’ Dynamics 365 licensing plans will focus on better providing organisations with specific Dynamics 365 applications that meet the unique needs of each business. Below is a summary of the general license changes:

  • A Base license must be purchased first, then attach licenses can be purchase
  • Customers must purchase the higher-priced Business Application as the Base license
  • Attach licenses can only be assigned to users with a Base license
  • Base and Attach licenses are identical in core capabilities, the only difference is price
  • Each user has one base license but can have as many Attach licenses as needed

The new approach

1. Identify the modules each user needs access to
2. Select a module as a Base module (normally the module they will use the most)
3. Attach the additional modules where required

Current Microsoft Dynamics 365 for Finance and Operations licensing plans

Currently, Microsoft Dynamics 365 for Finance and Operations applications exist under the banner of Microsoft Dynamics 365 Unified Operations. Customers have the option of buying each app individually, bundling the apps with the Unified Operations plan or buying the entire Microsoft Dynamics 365 Plan, which also includes all Customer Engagement applications. Today’s Microsoft Dynamics 365 for Finance and Operations license includes – Finance and Operations, Retail and Talent.

Dynamics 365 for Finance and Operations licences changes

The current Unified Operations plan will become 4 separate applications:

  • Finance
  • Supply Chain Management (SCM)
  • Talent
  • Retail

Until now, Finance and SCM have been combined in the single application D365 for Finance and Operations. Below is the breakdown of where existing modules of D365 for Finance and Operations, Talent and Retail align with the new licensing.

 

  Talent Retail Finance SCM
Talent x
Retail x
Financials and Accounting x
Budgeting x
Project Management x
Distribution x
Transportation x
Manufacturing x
Cost Accounting x
Engineering x
Quality Control x
Procurement x
Sales Orders x

Benefits of the new licensing model

The benefit of the new licensing model is that customers will be able to buy the apps they need rather than buying the whole plan. This way, customers do not get stuck paying for capabilities they do not need or use. Therefore, the new approach should reduce license costs for most customers, as you will only pay for what you use. Although the new pricing model is on a per-app basis, the plan still allows for bundling multiple apps. Deals that close before October 1, 2019, however, use the existing “plans and apps” model.

The reason behind the changes come about because Microsoft found that less than 10 per cent of users are taking advantage of all four areas of the existing plan. Therefore, by splitting the Unified Operations plan into four components, Microsoft believes there will be an increase in the perceived value because organisations are only paying for the functionality they need.

New Dynamics 365 pricing considerations

Starting October 1, the Base license price is £135.70 and then additional Attach licenses cost £22.60.

How does this impact current users of Dynamics 365 for Finance and Operations?

If you have an existing license you can continue to use the current price until your plan is up for renewal. However, when it comes to renewal, you will switch to the new price model at the best renewal price available.  Incremental Group will work with customers to assist with renewal discussions to ensure you have all you need and that you are only paying for what you use.

Contact us today for help with any Dynamics 365 licensing queries.