New License Pricing for Microsoft Dynamics 365 — October 2024

For the first time in over five years, Microsoft has introduced an update to the pricing structure for Microsoft Dynamics 365, effective from the 1st of October 2024.

Since the last pricing adjustment, Dynamics 365 has significantly evolved, integrating hundreds of new features that enhance both Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) across various business applications.

The Dynamics 365 suite spans marketing, sales, customer service, finance, and operations—streamlining workflows and boosting connectivity for businesses worldwide.

This update reflects the enhanced capabilities Dynamics 365 now offers, from AI-driven Copilot functionality insights to automation and cross-functional collaboration.

In this blog post, we’ll explore what these changes mean for specific products, explain the rationale behind the new pricing, and highlight the benefits Dynamics 365 continues to deliver for businesses.

The Updated Dynamics 365 Pricing Model – Key Changes

The new pricing structure impacts a range of Dynamics 365 applications. Below is an overview of the key products affected and their revised prices as of October 1, 2024.

Pricing in GBP is estimated based on the latest currency conversion.

Note: Prices apply to both new and existing customers upon renewal as of October 1, 2024, and similar increases will apply to on-premises versions. Products like Microsoft Dynamics 365 Business Central that are not mentioned in the tables pricing remain unchanged.

How This Change Affects Existing Customers

For existing customers, the updated pricing will take effect from 1 October 2024, applying at the next renewal of their current contract. This means current licences will only reflect the new prices when contracts come up for renewal after this date.

Existing customers can use this time to review their current Dynamics 365 usage and adjust licences based on organisational needs, which may help manage costs under the new pricing.

Rationale for the Price Increase

Microsoft’s pricing adjustments reflect substantial enhancements to Dynamics 365 over the past five years. These updates enable organisations to work more efficiently by leveraging the power of AI, automation, and seamless connectivity.

Twice a year, Microsoft introduces new features designed to simplify tasks, facilitate collaboration, and generate actionable insights—making Dynamics 365 an indispensable part of many businesses’ digital infrastructure.

The expanded functionality of Dynamics 365 is essential to give businesses the functionality they need to remain competitive in today’s digital world. This added investment also supports ongoing development in areas such as Copilot AI, supply chain visibility, finance automation, and customer engagement.

Impact on Key Dynamics 365 Applications

1. Microsoft Dynamics 365 Sales

• Sales Enterprise: Updated from $95 (£78) to $105 (£86), Sales Enterprise now offers more in-depth analytics and enhanced customer insights to refine sales strategies and pipeline management.

• Sales Premium: Now priced at $150 (£123), Sales Premium includes advanced forecasting tools and integrated AI, making it ideal for businesses that prioritise customer engagement and predictive insights.

2. Microsoft Dynamics 365 Customer Service

• Customer Service Enterprise: Priced at $105 (£86), this license offers robust case management tools, now enhanced with features to manage complex service interactions and reduce response times.

• Customer Service Device: Updated to $160 (£131), this license provides dedicated device-based support, ideal for environments with shared devices, such as retail or field service.

3. Microsoft Dynamics 365 Field Service

• Field Service: Now priced at $105 (£86), this application supports field service delivery with tools for scheduling, work order management, and customer communication powered by real-time data.

4. Finance and Supply Chain Management

• Finance: This essential module for financial management has increased from $180 (£145) to $210 (£169), and includes tools for automation, forecasting, and compliance, ideal for large enterprises.

• Supply Chain Management: Also now priced at $210 (£169), this module supports end-to-end supply chain visibility, making it easier to track inventory, reduce waste, and manage logistics.

5. Human Resources and Project Operations

• Human Resources: The price adjustment to $135 (£109) reflects upgrades in employee data management, onboarding, and performance tracking.

• Project Operations: Now at $135 (£109), this module integrates project management, accounting, and resource management for managing complex projects across industries.

Strategic Benefits of the Updated Pricing

• Enhanced Flexibility and Value: Microsoft’s new pricing provides access to newly introduced functionality, benefiting businesses of all sizes. By selecting applications that align with specific operational needs, organisations can maximise the value of their Dynamics 365 investment.
• Improved Accessibility for SMEs: SMEs can take advantage of the advanced features in Dynamics 365 without needing a complete systems overhaul. Entry-level plans for Sales and Customer Service provide core CRM capabilities, allowing small businesses to scale up as their requirements grow.
• Greater ROI through Customisation and Integration: With a range of products tailored for specific business functions, companies can build a custom Dynamics 365 setup tailored to their operational model. The ability to mix and match products, such as combining Finance with Supply Chain Management, offers a high return on investment (ROI) as companies benefit from a tailored system with unified data across departments.

Maximising Value with Dynamics 365: Best Practices

• Assess Specific Needs and Select Appropriate Tiers: Avoid overpaying by selecting licenses and tiers that align with current usage. For businesses in the initial stages of digital transformation, starting with lower-tier licenses may provide sufficient functionality.
• Optimise Usage with Regular Reviews: Evaluate ongoing usage of Dynamics 365 modules periodically. Reviewing licenses and adjusting based on employee needs can reduce costs over time.
• Invest in Training and User Adoption: Maximise ROI by training your team to leverage new Dynamics 365 features. Effective user adoption can unlock value across the platform, from analytics to automated workflows.

Preparing for the New Pricing Model

Transitioning to the new pricing structure can be smooth with careful planning.

Engaging a Dynamics 365 partner, such as Mercurius IT, can support your organisation in navigating this update and achieving a cost-effective setup.

As a trusted provider of Microsoft Dynamics 365 solutions, Mercurius IT has extensive experience helping businesses configure their software environments to suit their unique requirements and growth objectives.

A Future-Ready Investment

As Microsoft Dynamics 365 continues to expand its capabilities, this updated pricing model reflects both the platform’s value and its potential to drive digital transformation.

Companies have access to a flexible, highly customisable system that scales with their needs, offering comprehensive functionality for everything from customer relationship management to supply chain optimisation.

If you’re looking to make the most of these Dynamics 365 changes, our team at Mercurius IT is ready to help you understand the new options available, align your licenses with operational needs, and maximise your investment in Microsoft Dynamics 365.

Contact us today using the form below to discuss your requirements and learn how Dynamics 365 can power your growth.