According to information shared at this month’s Inspire partner conference, Microsoft plans to shake up its pricing, licensing and packaging yet again for its Microsoft Dynamics 365 CRM and ERP applications. The changes will be made as of October 1. But what exactly are these changes and what do they mean for customers who use Microsoft Dynamics 365 Business Central?
According to officials, Microsoft is moving away from the current ‘Plan’ or Bundle approach to packaging and licensing because ‘Plans are not landing the value message’. Officials have stated that Plans have led to customers focusing on pricing rather than value. Part of the change came about from many customers of Dynamics Navision paying for a plan or bundle but only using a limited number of apps provided. It was found that 80% of Dynamics 365 Customers Experience (CRM) users are using only a single app.
Some of the current plans include ERP via the Unified Operations Plan for $190 per user per month; CRM via a Customer Engagement Plan at $115 per user per month; and the Dynamics 365 Plan for $210 per user per month.
Microsoft summarized their plans for a less ‘one-size-fits-all’ approach, stating:
“Dynamics 365 licensing plans to focus on providing customers with the specific Dynamics 365 applications that meet the unique needs of their organization. Customers need software that aligns with their functional roles and scenarios, and they require the ability to add or remove applications as their company grows and changes over time. The new licensing model will allow customers to purchase the applications they need when they need them. Each application is extensible, and applications can be easily mixed and matched to configure integrated solutions that align with a customer’s unique business requirements.”
Although the Dynamics 365 Apps will still be able to be bundled, a new model will be introduced that is priced on a per-app basis. For example, the PowerApps Per-App plan charges $10per user per app per month. The PowerApps Per-User plan will cost $40 per user per month. The Flow Per-User plan will be $15 per user per month and the Flow Per Business plan will cost customers $500 per business process per month, up to five active workloads. More information on changes to PowerApps and Microsoft Flow standalone paid plans can be found here.
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