It can not be said that Microsoft doesn’t listen to it’s customer base. For the past few years Microsoft has regularly changed its Dynamics 365 pricing and licensing, to reflect customer demand and consumption. This latest update, set to take effect from October 1st 2019 on-wards, is just one of those examples.
The latest move, wont impact all Dynamics clients, but this pricing will have an immediate impact on any clients that are currently on month to month agreements through a CSP agreement. For any account that is on a yearly or multi year agreement, these price changes will be of impact at the time of contract renewal.
Plans are not landing the value message.
Microsoft has effectively withdrawn from the ‘plan/bundle’ license approach because the ‘Plans are not landing the value message‘, as most customers move to discussing pricing and not business value. Typically with the Customer Engagement Plan (CRM), many customers (around 80%) are just using a single plan application.
So what are the license changes?
Microsoft are reacting by removing the existing Dynamics 365 Plan license to a new per app basis (Pic & Mix), or using the Team Member license. Applications will be licensed to organisations by user, follwing a “Base & Attach” system, whereby the base application will be full cost and subsequent additional applications will be at a discounted price-point.
This freedom will give organisations the ability to only license users with the applications they need and value, based on their role and responsibilities.
For existing Dynamics Customer Engagement customers you will move to being licensed on a per app basis, or using the Team Member license.
Same functionality in Base & Attached apps in Dynamics 365
There is no difference in the functionality of an individual app regardless of whether it is licensed as the Base or an Attached application. These are only differentiated in price.
When a user is equipped with a Base license for an Enterprise app and a single Attach license, Microsoft says the total cost will be identical to the current Plan price and initial UK pricing confirms this @ £15.10 per additional app / user /month.
As a result, an increase in user costs compared to Customer Engagement Plan licensing would only occur if users migrate from a Plan to a Base app with two, or more, Attach licenses.
For each user requirement, where two or more apps are required, an administrator will need to Attach the appropriate license(s), available at a , to set the required combination.
Furthermore, points to cover:
An Attach license may only be assigned to a user with a valid base license.
The Base license must be the highest priced license, when a user has multiple apps.
Project Service Automation app can only be purchased as a Base license.
Marketing app is a tenant based license only, used as a Base license.
Several Dynamics 365 add-on products will not be available as an Attach licence. These include: Sales Insights and Customer Insights
As a Dynamics 365 customer, do I need to do anything immediately?
The change is effective October 1st 2019, existing Dynamics 365 customers will not be impacted until the renewal of your agreement. At this point, it will only be possible to transact licenses on the new model as Customer Engagement Plan licenses will no longer be available.
Need help or have questions?
Azzure has the in-house experience to assist you understand your licensing requirements and how to make the transition to this new license model. If you’re an existing Azzure customer, please contact your account manager for more information. Non-customers please request a call-back in the link at the bottom of the page and we’ll be glad to get in-touch.
10 Europa View, Sheffield Business Park, Sheffield, S9 1XH, UK