What does the recent Microsoft Dynamics 365 licence shake-up signify for Finance and Operations?

On 1st October 2019, Microsoft changed its approach to licenses and the way Dynamics 365 is priced. Microsoft Dynamics 365 for Finance and Operations is now divided into two separate applications: Dynamics 365 Supply Chain Management and Dynamics 365 Finance. Microsoft has also re-branded and shortened some of the Dynamics 365 application names. They have also introduced new app icons and a unified graphical identity across all Dynamics 365 apps.

The two main changes are the removal of the bundled plan (Microsoft Dynamics 365 for Finance and Operations applications that existed under the banner of Microsoft Dynamics 365 Unified Operations), and splitting up Dynamics 365 for Finance and Operations into Dynamics 365 Finance and Dynamics 365 Supply Chain Management.

These are pretty significant changes to Dynamics 365 licenses, pricing and branding, and begs the question, why has Microsoft shaken up these applications and how they are licensed?

One size does not fit all

Microsoft’s move aims to put the customer needs at the centre and has shifted centres from multi-application, one-size-fits-all Customer Unified Operations (UO), and Dynamics 365 Plans to focus on the licensing of individual applications that can be better tailored to individual user needs. This move certainly helps organisations to subscribe to the applications that align with their functional roles and scenarios, adding or removing applications as the company grows and changes over time. You can license the Dynamics 365 applications that you need when you need them.

What do the license changes mean for you?

Existing customers grandfathering plan

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. This will be an opportunity for you to re-evaluate your overall application needs and optimise them if necessary.

Under a grandfathering plan, existing Dynamics 365 Finance and Operations customers can extend existing licensing terms for 12 months from 1 October 2019, or following the expiry of your current Dynamics subscription term, whichever is longer.

We 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.

New customers

This change will enable you to acquire the licensing for the individual tasks of your employees in the future. You can choose the applications that best fit your needs and only pay for what you use.  This new pricing model may appear complex. However, we believe the new licensing and application split offers you the possibility to plan your Dynamics 365 business applications according to your needs and application use.

If you need help with your licensing landscape, our one-day Licensing Lab for Dynamics 365 Finance or Dynamics 365 Supply Chain Management provides you with the answers and support to untangle your licensing landscape and create a plan for moving forward with Dynamics 365 Finance or Supply Chain Management.