Microsoft Dynamics 365 is a powerful cloud-based suite of business applications that includes a wide range of tools and features designed to help organizations streamline their operations, improve customer engagement, and boost productivity. With its modular approach and flexible licensing options, Dynamics 365 is an excellent choice for businesses of all sizes, across a variety of industries. In this blog post, we'll take a closer look at Dynamics 365 licensing options and costs, to help you make an informed decision about which license is right for your organization.
Overview of Dynamics 365 Licensing Options
Dynamics 365 offers a variety of licensing options to suit the needs of different businesses. These options include:
Dynamics 365 Customer Engagement (CE)
Dynamics 365 CE is designed to help businesses manage their customer interactions and relationships. This suite of applications includes tools for sales, marketing, customer service, and field service. Dynamics 365 CE licensing is based on the number of users and the specific apps that are being used.
Dynamics 365 Finance and Operations (FO)
Dynamics 365 FO is designed to help businesses manage their financial operations, supply chain, and manufacturing processes. This suite of applications includes tools for finance, accounting, inventory management, production management, and more. Dynamics 365 FO licensing is based on the number of users and the specific apps that are being used.
Dynamics 365 Unified Operations (UO)
Dynamics 365 UO combines the capabilities of Dynamics 365 CE and Dynamics 365 FO, providing a comprehensive suite of applications that can help businesses manage their entire operations. This suite of applications includes tools for sales, marketing, customer service, field service, finance, accounting, inventory management, production management, and more. Dynamics 365 UO licensing is based on the number of users and the specific apps that are being used.
Dynamics 365 Business Central
Dynamics 365 Business Central is designed specifically for small and medium-sized businesses. It offers a suite of applications that can help businesses manage their financial operations, supply chain, and inventory. Dynamics 365 Business Central licensing is based on the number of users and the specific apps that are being used.
Dynamics 365 Human Resources (HR)
Dynamics 365 HR is designed to help businesses manage their employee lifecycle, from recruitment to retirement. This suite of applications includes tools for talent acquisition, onboarding, benefits management, time and attendance tracking, and more. Dynamics 365 HR licensing is based on the number of users and the specific apps that are being used.
Dynamics 365 Commerce
Dynamics 365 Commerce is designed to help businesses manage their online and in-store retail operations. This suite of applications includes tools for e-commerce, point-of-sale, order fulfillment, inventory management, and more. Dynamics 365 Commerce licensing is based on the number of users and the specific apps that are being used.
Dynamics 365 Licensing Costs
The cost of Dynamics 365 licensing depends on a variety of factors, including the specific applications that are being used, the number of users, and the level of functionality required. In general, Dynamics 365 licensing costs fall into three categories:
Full users have access to all the features and functionality of the Dynamics 365 applications that they are licensed for. Full users can create, edit, and delete records, and they can access all the reports and dashboards that are available. Full user licenses are generally more expensive than other types of licenses.
Team members have limited access to the Dynamics 365 applications that they are licensed for. They can view records, update existing records, and perform some basic tasks, but they cannot create new records or delete existing ones. Team member licenses are less expensive than full user licenses.
External users are individuals who are not employees or contractors of the organization but require access to Dynamics 365 applications for business purposes. External users can access only a limited set of data and functionality, as defined by the organization. External user licenses are generally less expensive than full user licenses.
Dynamics 365 licensing costs are typically based on a per-user, per-month basis, although annual subscriptions are also available. The exact cost of licensing depends on a variety of factors, including the specific applications being used, the number of users, and the level of functionality required. Microsoft offers several pricing tiers for each Dynamics 365 application, with different levels of functionality and support.
Below is a breakdown of the different licensing options and costs for each Dynamics 365 application:
Dynamics 365 Customer Engagement
Dynamics 365 CE licensing is based on the specific applications that are being used and the number of users. The following licensing options are available:
1. Sales Professional - $65 per user per month: This license is designed for sales teams that need basic sales management functionality, such as lead and opportunity management, forecasting, and mobile access.
2. Sales Enterprise - $95 per user per month: This license includes all the features of Sales Professional, plus advanced sales management functionality, such as territory management, product catalogs, and price lists.
3. Customer Service Professional - $50 per user per month: This license is designed for customer service teams that need basic customer service functionality, such as case management, knowledge management, and mobile access.
4. Customer Service Enterprise - $95 per user per month: This license includes all the features of Customer Service Professional, plus advanced customer service functionality, such as entitlements, service-level agreements (SLAs), and unified service desk.
5. Field Service - $95 per user per month: This license is designed for organizations that provide field service, such as maintenance, repair, and installation services. It includes features such as scheduling, dispatch, mobile access, and inventory management.
Dynamics 365 Finance and Operations
Dynamics 365 FO licensing is based on the specific applications that are being used and the number of users. The following licensing options are available:
1. Finance - $180 per user per month: This license is designed for finance teams that need basic financial management functionality, such as general ledger, accounts payable, and accounts receivable.
2. Supply Chain Management - $190 per user per month: This license is designed for supply chain teams that need basic supply chain management functionality, such as inventory management, procurement, and sales order management.
3. Finance and Supply Chain Management - $210 per user per month: This license includes all the features of Finance and Supply Chain Management, plus additional functionality such as project management and human resources.
Dynamics 365 Unified Operations
Dynamics 365 UO licensing is based on the specific applications that are being used and the number of users. The following licensing options are available:
1. Unified Operations Plan - $190 per user per month: This license includes all the features of Dynamics 365 FO and Dynamics 365 CE, providing a comprehensive suite of applications for managing all aspects of an organization's operations.
2. Additional Applications - $20 to $40 per user per month: Organizations can add additional Dynamics 365 CE or Dynamics 365 FO applications to their Unified Operations Plan license for an additional monthly fee.
Dynamics 365 Business Central
Dynamics 365 Business Central licensing is based on the specific applications that are being used and the number of users. The following licensing options are available:
1. Essentials - $70 per user per month: This license is designed for small and medium-sized businesses that need basic financial management and supply chain management functionality.
2. Premium - $100 per user per month: This license includes all the features of Essentials, plus advanced functionality such as manufacturing and service management.
3. Team Members - $8 per user per month: This license is designed for individuals who need limited access to Dynamics 365 Business Central functionality, such as time and expense entry, approvals, and basic reporting.
Dynamics 365 Marketing
Dynamics 365 Marketing licensing is based on the number of contacts that are being managed in the system. The following licensing options are available:
1. Marketing - $1,500 per month for up to 10,000 contacts: This license is designed for organizations that need basic marketing functionality, such as email marketing, lead management, and event management.
2. Additional Contacts - $250 per month for each additional 10,000 contacts: Organizations can add additional contacts to their Marketing license for an additional monthly fee.
Dynamics 365 Human Resources
Dynamics 365 HR licensing is based on the number of employees that are being managed in the system. The following licensing options are available:
1. Human Resources - $120 per user per month: This license is designed for HR teams that need basic HR management functionality, such as employee profiles, benefits administration, and performance management.
2. Talent - $1,000 per user per month: This license includes all the features of Human Resources, plus advanced talent management functionality, such as recruiting, onboarding, and succession planning.
Dynamics 365 Project Service Automation
Dynamics 365 PSA licensing is based on the number of users that are using the system. The following licensing options are available:
1. Project Service Automation - $95 per user per month: This license is designed for organizations that need project management functionality, such as project planning, resource management, and time and expense tracking.
Dynamics 365 Retail
Dynamics 365 Retail licensing is based on the specific applications that are being used and the number of users. The following licensing options are available:
1. Point of Sale - $180 per device per month: This license is designed for retail teams that need basic point of sale functionality, such as sales, returns, and exchanges.
2. Retail - $170 per user per month: This license includes all the features of Point of Sale, plus additional functionality such as inventory management, merchandising, and omnichannel sales.
3. Additional Devices - $40 per device per month: Organizations can add additional devices to their Point of Sale license for an additional monthly fee.
In addition to these licensing options, Microsoft offers several licensing add-ons and extensions that can be added to existing Dynamics 365 licenses to provide additional functionality or support. These include:
It's important to note that the licensing options and costs outlined above are subject to change, and may vary depending on the region or country where the organization is located. Organizations should consult with a Microsoft partner or sales representative to determine the exact licensing options and costs that are appropriate for their specific needs.
In conclusion, Dynamics 365 offers a range of licensing options and costs to suit the needs of organizations of all sizes and industries. By understanding the different licensing options and costs available organizations can choose the right license for their specific needs and budget. It's important to carefully consider the features and functionality offered by each license, as well as any add-ons or extensions that may be needed, in order to ensure that the organization is getting the most value for its investment.
When evaluating licensing options, it's also important to consider factors such as scalability and flexibility. As an organization grows and evolves, its needs may change, and it may require additional functionality or support. Choosing a licensing option that allows for flexibility and scalability can help ensure that the organization is able to adapt to changing needs and continue to derive value from its Dynamics 365 investment over time.
Ultimately, the right Dynamics 365 licensing option will depend on the specific needs and goals of each organization. By working with a Microsoft partner or sales representative, organizations can get the guidance and support they need to choose the right licensing option and ensure a successful Dynamics 365 deployment.