Licensing for Microsoft Dynamics 365 products can be very confusing for a lot of people, particularly at the beginning. Especially because Microsoft Dynamics 365 collects a large number of different applications under a uniform name. It is possible to divide roughly the applications into two parts - ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management). In the following blog article, we would like to go into more detail about licensing in the area of CRM. Applications that are collected under the term Microsoft Dynamics 365 Customer Engagement. Are you already confused? If yes, read on to get some clarity.

Dynamics License Costs


Microsoft Dynamics 365 for Sales Professionals

Let's start with the "smallest" license. This license was introduced only in mid-2018 to provide a suitable license for smaller companies that only provides basic functionalities for sales, such as lead and opportunity management or quotation and order management. There are also restrictions on the number of custom entities (15), business process flows (5), custom workflows (15), 3rd party applications (10) and forms per entity (2). The sandbox instance is also omitted. However, there is good news for everyone who wants to map the support process via CRM - Case Management is included. Currently the cost per user is 54,80€ per month for this license (status October 2018).

Microsoft Dynamics 365 for Sales Enterprise

This license contains all functions of the Sales Professionals license, without the mentioned restrictions in customizing and additionally contains Sales Goals, Territory Management, Competitors, Relationships and Hierarchies. Add-on functionalities such as Unified Service Desk, Social Engagement, Voice of the Customer, Gamification, and PowerApps are also included. With this license you get the full sales automation package, which is certainly necessary for larger companies to guarantee a complete customer management. The cost per user is 80,10€ (status October 2018).

Microsoft Dynamics 365 for Customer Service

This application is designed to map the entire customer support within the CRM. This includes Case Management, Interactive Service Hub, Unified Service Desk for Microsoft Dynamics 365, SLAs and Entitlements. Add-on functionalities such as Unified Service Desk, Social Engagement, Voice of the Customer, Gamification, and PowerApps are also included.  The cost per user is 80,10€ (status October 2018).

Microsoft Dynamics 365 for Field Service

Field Service enables field representatives to access the information and resources they need in real time, anywhere in the world. This includes work order management, scheduling / time tracking, routing capabilities, repair and returns management, and inventory management. This user license also includes the Field Service Mobile Application, a Microsoft app designed specifically for Dynamics 365 for Field Service, as opposed to the Dynamics CRM Mobile Client Application. This mobile app is technically limited to field service entities and a maximum of 10 custom entities. Prices and add-on functionality are the same as Dynamics 365 for Sales and Dynamics 365 for Field Service.

Microsoft Dynamics 365 for Project Service Automation

Microsoft Dynamics 365 for Project Service Automation is designed for project team members who manage projects and the associated customer retention process from start to finish. This includes functionalities such as building a project organization, working with customers, project planning and costing, managing and approving time and costs, and completing projects. This user license also includes the Microsoft Project Online Premium license. Prices and add-on functionalities are the same as for the three previous licenses.

Microsoft Dynamics 365 for Marketing

Dynamics 365 for Marketing includes all the features a growing company needs to plan and execute its marketing strategy, including email campaigns, landing page management and event management. The app also includes a set of marketing automation tools that help companies manage their customers smarter. The pricing model is way more complex as in the other licenses, so we refer you to our blog article ClickDimensions and Dynamics 365 for Marketing Compared. In this article, the pricing model is described in detail.

Microsoft Dynamics 365 for Customer Engagement

Let's move on to the most valuable license in the CRM area. The Dynamics 365 Customer Engagement Plan license is a combination of applications available for Dynamics 365.  The Dynamics 365 Customer Engagement License is sometimes referred to as Plan 1 and its functionality includes the following applications:

  • Sales
  • customer service
  • Project Service Automation
  • field service
  • Marketing (up to 2,000 contacts)

This includes the Power Apps and service of the mobile application platform.  If you need more than one application in Dynamics 365, this is the most cost-effective way to license Dynamics 365 because it provides full access to the entire CRM world. The cost per user is €97 (as of October 2018).

Difference between Full Users and Team Members

It is possible to assign additional users with a Team Member license. This basic license costs only 6,70€ per user (status October 2018). In the following text we will briefly describe the differences between a full user (users who have one of the previously described licenses) and a team member.

A Team Member is a user who is not tied to a specific function but needs basic Dynamics 365 functions. This license includes read access and some write access for selected entities across all Dynamics 365 applications for a specific tenant. This means, if an application is added to a tenant, a team member automatically gets access to it. Of course, in the limited way.

Full users are the users whose work requires the use of the full functionalities of the business applications. Examples of full users are sales representatives, customer service representatives, financial consultants, controllers and supply chain managers. In the past, these users were also referred to as professional users or power users. These full users are licensed with a Dynamics 365 Plan or Dynamics 365 application. Any user who has one of the licenses described above would be a full user.

Billing Cycles for Licenses Microsoft Dynamics 365

The clear majority of companies that distribute Dynamics 365 licenses offer a monthly billing cycle. An annual billing cycle is usually combined with discounts for purchasers. Daily billing is extremely rare and is not offered at all by the larger Dynamics 365 license distributors. However, we - the INKUBIT - offer a daily billing cycle. Please contact one of our consultants to get more information.

We hope to have helped you to find your way through the license jungle of Microsoft Dynamics 365. Further information can be found on the official Dynamics 365 license page of Microsoft.