There are some big changes coming to the way Microsoft license Dynamics 365 for Customer Engagement. This article will cover everything you need to know ahead of the changes taking effect on the 1st October 2019.

The overall changes coming to Dynamics 365 Customer Engagement licensing is a move away from selling bundled plans towards a so-called “a la carte” list. Currently, in the Dynamics 365 business model, Microsoft sell bundled plans of applications for full users.

Microsoft has however discovered that almost 80% of Dynamics 365 Customer Engagement users only use one application and just 17% of users use two applications, with the numbers dropping even further for those using three plus applications. This means that many customers are therefore paying for services that they do not make use of nor perhaps even need.

In the new model, launching 1st October, plans will be removed and customers will now be able to purchase applications aligned to individual user needs. This means, a group of users, for example, a sales team, can just buy Sales whereas another group of users, for example a customer support, team could just purchase Customer Service but add additional apps for other requirements. Overall, organisations will now be able to mix and match applications, to better suit the needs of their users.

 

D365 for Customer Engagement licencing vs. old

 

The new model is very simple when a user requires just one app as you just purchase that app (see “Single App User” below). However, when a user needs multiple applications, the pricing will build. The first application that the user requires will be considered the base license and will be purchased at a standard price. The additional licenses that are required, the attach license, will then be available at a discounted price (see “Two App User” and “Three App User” below). It is important to note that attach licenses must be assigned to the same user as that of the base license.

D365 for Customer Engagement licencing

 

There are some applications that must be purchased as the base license and are not available as an attach app, for example Project Service Automation. See below for a breakdown of these.

 

Customer Engagement (CE) base licenses
Full users Sales Enterprise
£71.60
Customer Service Enterprise £71.60 Field Service
£71.60
Sales Professional
£49
Customer Service Professional £37.70 Project Service Automation £71.60
Customer Engagement (CE) attach licenses
Full users Sales Enterprise
£15.10
Customer Service Enterprise
£15.10
Field Service
£15.10
Sales Professional
£15.10
Customer Service Professional
£15.10

 

Current Customer Engagement pricing is £86.70 and this is the new cost for two applications therefore current customers will only see a price increase from the three apps and above mark . As explained, currently around 97% of Customer Engagement users use one or two applications, therefore, most customers will not see a price increase. However, for the 3% who use more than two apps, the new model will mean an increase in licensing costs.

Effective Oct 2019

Base license price £71.60
Attached license price £15.10
Apps Price
One £71.60
Two £86.70
Three £101.80
Four £116.90

Good news for all Customer Engagement users is that PowerApps will still be made available to Dynamics 365 licensees. A similar Flow license will also be offered to Dynamics 365 users.

In summary, for the vast majority of users prices will remain the same or decline if one app is used, however, unfortunately for a small percentage price will increase. The new model enables customers to avoid unnecessary costs by tailoring app packages to the specific needs of their users. The new model will require many organisations to dedicate some valuable time into mapping their user needs upfront in order to make economical licencing decisions.

Find out more about the individual applications of Dynamics 365 for Customer Engagement here.