As of October 1st, 2019, Microsoft has changed the way that Dynamics 365 is packaged and licensed. The licensing changes are quite a big this time around, so we’re here to help guide you through it and understand the changes.

What has changed to licensing?

In order to put more control in the hands of the customer, Microsoft has moved away from their one-size-fits-all approach using plans, to a model that allows you to pick and choose from separate applications—meaning you only pay for what applications you use as a user. Each user is assigned a ‘Base’ app, which the license is paid for in full, and then any additional apps used by the user are purchased at a discounted rate, known by Microsoft as an ‘Attach’ price. This new licensing model means that users have more flexibility to create the solution they need to fit the unique requirements of their organisation and the roles of the employees in it. Additionally, Dynamics 365 Finance & Operations has now been split into two applications—Finance & Supply Chain Management

How it works

Base licenses must be the higher-priced license, Microsoft has worked out that there won’t be any loopholes to get lower prices—but this new model means its likely that any costs won’t be higher than you’re paying now. Due to some application being unable to be purchased as an Attach license this means some users may require a second base license.

  • Each full user must have a Base license, and then any Attach licenses after
  • There is no limit to the amount of Attach licenses that can be assigned to a user—they just must have a correct base license
  • There is no difference in functionality between Base & Attach licenses
  • All licenses remain as named users, meaning they’re attached to one person, but this one person can access applications from multiple devices.

 Dynamics 365 products and new ‘Base’ & ‘Attach’ License prices

The images below show all the Dynamics 365 products, in their respected category, with their Base and Attach license cost.

  

What applications can’t be purchased as an ‘Attach’ license?

Not all the Dynamics 365 applications can be purchased as an Attach license. If a user requires two or more of these applications, they will have to buy both licenses at the base cost, then any Attach licenses on top for the discounted price.

  • Project Service Automation
  • Supply Chain Management
  • Finance
  • Retail
  • Talent
  • Marketing (licensed per tenant)

*NOTE: Supply Chain Management, Finance, and Retail apps have a 20-user minimum purchase requirement.*

The below non-core business apps and additional apps also don’t qualify for the Base & Attach model but can be purchased as individual licenses.

  • Customer Insights
  • Microsoft Relationship Sales solution
  • Sales Insights
  • Customer Service Chat
  • Resource Scheduling Optimization
  • Comprehensive hiring
  • Order Lines
  • Forms Pro
  • All capacity add-ons

 

As a new customer, what do these changes mean for me?

These changes mean that instead of selecting one of the plans from before, you use this new Base/Attach model and price list.

As an existing customer, what do these changes mean for me?

When you purchased your Dynamics 365 licenses the term was for a minimum of 1 year, so the licensing model won’t immediately affect you, it will only change once the year period is up. After that, you will have to consult with your Dynamics partner to renew your licenses using the new Base/Attach model for your users.

For example, if you purchased D365 licences in July 2019 using the old plan licensing model, it won’t be until August 2020 that you switch over to the Base/Attach model.

What about Business Central?

Business Central licensing hasn’t changed and is using the same model as before, using the same Essentials/Premium model. View the Dynamics 365 Business Central Licensing Guide for more info.

 

If you are interested in purchasing Dynamics 365 or want to learn more about the new licensing changes then either download the licensing guide here or feel free to contact us for a no-obligation chat.

Email info@mercuriusit.com

Phone 01908 508 080

Additional Links

Microsoft Dynamics Page

Dynamics 365 Licensing Guide

Dynamics 365 Capabilities Guide

Extra reading