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Understanding New Pricing Model for Dynamics 365 Customer Engagement

- Licensing Updates from July 2019.

What had it been like before the October 2019? 

Customers looking for a Dynamics 365 solution could choose between 3 purchase options:

  • By buying an individual application (module), e.g. Customer Service
  • By buying a whole suite (Plan), including a set of various modules, e.g. Customer Engagement Plan
  • By buying an additional user license, e.g. for device, specific activities or team members

What is it like right now? 

Think of this change as of a restaurant moving from “all you can eat” to a carefully selected “Chief’s recommendations” on a Menu. A restaurant moving from a collectivistic meal sharing to individual selections, one person = one meal.
Microsoft’s Menu, called “A La Carte Sales Motion” introduces a list of specially tailored user license (USL) based application, which means that when the customer purchase something from the “a La Carte”, it will be assigned individually, per user.
In a result we will not be able to purchase the whole suits, plans that contain the full user suites of application licenses – they will be removed from the price lists:

  • Dynamics 365 Plan
  • Customer Engagement Plan
  • Unified Operations Plan

This change will enable customers to purchase suitable core workload application(s) for individual user needs. Core workload Business Applications will be:

  • Sales
  • Customer Service
  • Field Service
  • Project Service Automation
  • Retail
  • Talent
  • Supply Chain Management
  • Finance

Additionally, as a result of the new change, we will get two new applications: Supply Chain Management and Finance that have previously been integrated within Finance & Operation module.

 

 

Base license: The Base license is the first Business Application that is purchased at the standard price.  Every full user must have a Base license and, may require a second Base license if, for example, Talent (not available as an Attach license) is required.  When purchasing multiple Business Applications, the qualifying Base license must be the higher-priced license.

Attach license: a USL application(s) incrementally purchased after the Base license at a flat price of 20$ or 30$ each. Users may have as many Attach licenses as needed.

Base and Attach licenses are the same in their core capabilities but differ in price.  For example, if the customer wants both Sales Professional ($65) and Customer Service Enterprise ($95), they will need to purchase the Customer Service Enterprise SKU as their Base license and the Sales Professional SKU as their Attach license. Except for Talent, Project Service Automation, and Marketing, customers can mix Customer Engagement (CE) and Unified Operations (UO) Applications to meet their users’ needs. The only restriction is that customers must purchase the higher-priced Business Application as the Base license

Minimum Purchase Requirements
  1. Only Base Applications require the minimum purchase
  2. Academic users must purchase a minimum of 20 Customer Engagement Base Licenses but can combine different CE applications to meet the requirement.
  3. The Talent Application continues to have a 5-user purchase requirement and cannot be combined with other applications to meet the goal.
  4. Unified Operations Applications (Supply Chain Management, Finance, Retail) have a 20-user minimum purchase requirement
  • In a Cloud Solution Provider Program (CSP): each Base License (Supply Chain Management, Finance and Retail) must individually meet the minimum of 20 USLs for each purchase

  • In an Enterprise Agreement (EA) or Microsoft Products and Services Agreement (MPSA): Base License (Supply Chain Management, Finance and Retail) can be combined to meet the minimum of 20 USLs.