Big Changes Coming to Licensing for Dynamics 365 in October 2019
Big changes are coming for Dynamics 365 Unified Operations apps and how they are licensed. At Inspire, a Microsoft partner conference, Microsoft announced Finance and Operations will be split into two standalone applications – Supply Chain Management and Finance. This change will begin October 2019. Microsoft’s goal with this change is to give more flexibility to users when choosing the applications that align with their business needs.
Currently, there are three plans available – Customer Engagement, Unified Operations, and Dynamics 365.
Moving forward, the Unified Operations Plan will split into Finance, Supply Chain Management (SCM), Talent, and Retail.
Microsoft is pivoting their offerings based on information gathered from user data and usage that is hosted within the cloud. They found that less than 10 percent of users are taking advantage of all four areas of the plan. By splitting the Unified Operations plan into four components, Microsoft believes there will be an increase in the perceived value because companies are only paying for the functionality they need. Just like other plans within the Dynamics 365 model, companies will be able to start with their base solution and then “attach” on additional functionality.
This encourages customers to purchase applications aligned with specific needs.
This segmentation isn’t completely foreign from offerings that have been available in the past. Historically, many other Dynamics products used this same model that allowed customers to choose the packaged functionality they required and couple it with their base financials. Microsoft did state that these offerings are subject to change prior to their official roll out in the fall.
Starting October 1, pricing for Dynamics 365 Unified Operations Applications will transition. The base license price is $180 and then additional attach licenses cost $30.
Depending on your specific needs, this change could affect your monthly payment. Microsoft released two example scenarios that highlight how costs could increase or decrease depending on users and applications.
What does this mean for current Dynamics 365 Finance and Operations Users?
Customers on existing license agreements will continue to use the existing price until their plan is up for renewal. At that point, all customers will transition to the new price model at the best renewal price available. Microsoft and your partner will use your usage report to assist with renewal discussions to ensure you have the functionality you need and only pay for what you use. Qualified existing clients are eligible for a discounted rate of $15/user/month for attach licensing. Reach out to Stoneridge to learn more.