A new license model for Microsoft Dynamics 365 has been in effect since October 1, 2019. The new license model is valid for all new customers and for existing customers from the next license renewal. This means that if you purchased a license in August 2019 for one year, the new license model will be valid next year in August 2020. Microsoft is moving away from one-size-fits-all licenses, in which applications were bundled, towards an à la carte licensing model.
In future, the individual modules, such as Dynamics 365 Field Service or Dynamics 365 for Sales, can be assigned more individually to the users. This means better control of the required licenses. Of course, every change has its advantages and disadvantages. We try to give you some clarity with the following article.
With the new license model, a distinction is made between basic and attach licenses. Every user needs a basic license to start. Each additional module requires an attach-license.
- A basic license or the first license costs 80,10€ per user per month.
- An Attach license costs 16.90€ per user per month.
The following applications can serve as basic licenses (first license):
- Sales Professional (costs only 54,80€ per month. However, only the Customer Service Professional can be assigned as an attach license.)
- sales enterprise
- customer service enterprise
- Customer Service Professional (costs only 42.20€ per month. But only Sales Professional can be added as an Attach License).
- field service
- project service automation
There are applications that cannot be purchased as an attach-license:
- Project Service Automation (80,10€ per user per month.)
- Marketing (1.265€ without a qualifying Dynamics 365 App and 632,50€ with a qualifying Dynamics 365 App per month.)
Dynamics 365 for Marketing is a bit out of the ordinary in terms of licensing costs. However, you should keep in mind that Dynamics 365 for Marketing is an extremely comprehensive module, which cannot be compared to the other Dynamics 365 Apps.
By qualifying Dynamics 365 App, Microsoft means at least 10 users who have a basic-license. As of the 10th user with a Basic-license, Dynamics 365 for Marketing can be licensed for 632,50€.
The following graphic shows a possible scenario for Dynamics 365 for Sales Enterprise as basic-license with two additional modules (attach-license).
Microsoft has also abolished the Volume Discount with the new license model. This was only possible with a Customer Engagement Plan. However, existing licenses are still valid until the expiration date.
With the Team Member license, everything remains the same. Users with a Team Member license have read access to all entities, can create, edit and delete contacts.
For all those who still have many licenses in their portfolio according to the old license model with a long runtime, it is definitely worthwhile to recalculate whether costs can possibly be saved with the new license model. If you would like to use both Professional licenses (Sales Professional and Customer Service Professional) in your company, you should definitely first purchase the Customer Service as a basic-license and then add the Sales Professional as an attach-license. This will save you €12.80 per month. That doesn't seem much at first glance, but with a large number of users it adds up quite quickly.
Do you have any further questions? Contact one of our consultants or leave a comment.