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Microsoft Dynamics 365 is a powerful Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) solution providing enterprise business applications on-premise and online. Each intelligent application helps organizations manage their different business units. Dynamics 365 is a full-scale ERP solution that includes integrations with the Microsoft Power Platform. You can deploy the different ERP and CRM Dynamics 365 applications independently or integrated together. Microsoft’s updated pricing model prices Dynamics 365 applications individually and sets minimums for the number of licenses that must be purchased.
Note: This blog post reflects Dynamics 365 licensing pricing and changes valid up until the date of the post – April 6th, 2020.
Dynamics 365 pricing and documentation shown below are subject to change at any time and do not apply to Microsoft Dynamics 365 on-premise, Microsoft Dynamics 365 for Operations on-premise, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Microsoft Dynamics AX 2012 or prior versions, Microsoft Dynamics CRM 2016 or prior versions, Microsoft Dynamics CRM Online or Microsoft Dynamics AX online services.
If you are running a Microsoft Dynamics legacy solution, your Microsoft licensing will differ from the 2020 Dynamics 365 pricelist covered today (and discounts may apply).
As shown in the graphic above (source: Dynamics 365 Licensing Guide April 2020), the Dynamics 365 enterprise applications include Sales Enterprise, Customer Service Enterprise, Field Service, Marketing, Finance, Supply Chain Management, Commerce, Human Resources, and more.
All Dynamics 365 apps are offered at different user prices based on the user’s needs. Users can mix and match between applications, Dynamics 365 base licenses, and attach licenses. The attached licenses are further explained below. See the aggregated view of the Dynamics 365 base and the attached license cost.
Microsoft Dynamics 365 CRM and ERP apps. This graphic from the April 2020 Dynamics 365 Licensing Guide, lists Dynamics 365 base licenses and attach licenses. The attached licenses are further explained below. See the aggregated view of the Dynamics 365 base and the attached license cost.
Microsoft 365 Sales Enterprise enables sales directors, account managers, and salespersons to manage accounts and establish account structures that bring contacts, leads opportunities, and product details into one system. With Dynamics 365 Sales Enterprise, you can handle complex sales and business processes that help convert leads into customers with the help of embedded artificial intelligence. With Sales Enterprise, you can personalize and customize your interface and create unique dashboards. You’re also able to generate sales reports.
Pricing: Dynamics 365 Sales Enterprise is $95 per user/month and $20 per user/month subsequently qualifying (Attach license). (Source: April 2020 Dynamics 365 Licensing Guide)
Dynamics 365 Sales Insights is licensed per user and not per tenant-based. With Dynamics 365 for Sales Insights, you can improve customer engagement and make smarter decisions while leveraging embedded analytical insights and copilot features. Features like AI assistance, email management, auto-capture, and a business card scanner when adding contacts to your database are included with Dynamics for Sales Insights.
Pricing: Dynamics 365 Sales Insights is $50 per user/month. (Source: April 2020 Dynamics 365 Licensing guide)
MRSs is licensed per user and allows sales individuals to establish faster relationships with new customers unfamiliar with your organization. The solution will increase your lead amount and you will get better datasets in exchange.
There are two versions of MRSs. A ‘Standard version’ and a “Plus” version:
Pricing: Dynamics 365 Marketing Relationship Sales is $130 per user/month.
Dynamics 365 Customer Service can be purchased as an Enterprise or a Professional subscription. Dynamics 365 Customer Service includes configurable complex capabilities that can be modified to fit your needs. For Customer Service departments, Dynamics 365 Customer Service empowers employees to provide outstanding customer service and allows your employees to deliver personalized service, faster.
Pricing: Dynamics 365 Customer Service is $95 per user/month and $20 per user/month subsequently qualifying (Attach license). (Source: April 2020 Dynamics 365 Licensing Guide.)
Microsoft Dynamics 365 Customer Service price list
Unlike Dynamics 365 Sales Insight, Dynamics 365 Customer Insights is licensed per tenant and not per user. It gives your business deep insights into your service data and enables you to make better and faster decisions. The intelligent insight capabilities bring you one step closer to your customers and eliminate data silos. You can leverage your different customer data sources and view them within the Dynamics 365 application.
Pricing: Dynamics 365 Customer Service Insights is $75 per user/month.
On top of Customer Service, a subset of new functionalities is available that are worth mentioning. Chat for Dynamics 365 Customer Service is an add-on capability for the Customer Service Enterprise application, enhancing existing Dynamics customer engagement. It gives customer service representatives real-time engagement opportunities that lead to faster-resolved cases/customer obstacles.
Chat is a 2020 functionality and is licensed per user. Note: Use of historical Supervisor reporting through Omnichannel Intraday Insights, Omnichannel Chat Insights, and Omnichannel Sentiment Insights Dashboards requires a Power BI Pro license or higher. Please see Power BI licenses for more information.
Another add-on tool is Dynamics 365 Digital Messaging. It includes the Chat functionality and can be used to leverage SMS functionalities. Digital Messaging is licensed with a Dynamics 365 application subscription per user.
Organizations with field-based service teams such as windmill engineers, maintenance employees, offsite mechanics, etc. should use Dynamics 365 Field Service. A tight integration between your Customer Service tickets/cases allows the field workers to get live insights and deliver results faster. Field Service is available on all mobile devices, giving users a powerful customer experience tool with comprehensive use rights.
Pricing: Dynamics 365 Field Service is $95 per user/month and $20 per user/month subsequently qualifying (Attach license).
The new marketing application is licensed per tenant and has to be assigned to each user through the admin portal. With Marketing, you can create campaigns, personalize the customer journey, run business-unit-level marketing, and create events very simply.
Price for organizations without any other Dynamics 365 app – From $1,500 per tenant/month
Price for organizations with qualifying Dynamics 365 app – From $750 per tenant/month1
1 10 users minimum of qualifying Dynamics 365 app (Sales, Customer Service, Field Service, Project Service Automation, Finance, Supply Chain Management, or Commerce) – Source: April 2020 Dynamics 365 Microsoft Licensing Resource Guide.
The Microsoft ERP flagship application is Dynamics 365 for Finance, a Microsoft Business suite core component. 365 Finance enables organizations to monitor the performance of local, international, and global financial operations – in real time! Dynamics 365 Finance allows you to predict future financial outcomes and create decisions based on Dynamics 365 data analytics. Microsoft’s Finance application integrates deeply with other Dynamics 365 applications such as CE, Supply Chain Management (SCM), Office 365, and Microsoft Azure.
Pricing: Dynamics 365 Finance is $180 per user/month and $30 per user/month additional cost qualifying (Attach) licenses, per Microsoft’s March 2020 price list.
Supply Chain Management is the Dynamics ERP application to help industrial manufacturers, distributors, food manufacturers, and retailers with all the real-time supply chain insight and information needed to operate nimble and proactive enterprises. Microsoft AI and IoT insights are used to unify data within SCM so that you maximize efficiency, product quality, and profitability.
Pricing: Dynamics 365 for Supply Chain Management is $180 per user/month and $30 per user/month subsequently qualifying (Attach).
Project Service Automation is a strong and comprehensive project management tool that allows you to combine customer engagement and complex end-to-end projects.
Project Service Automation cannot be purchased as an attached license but as a base license. You may combine the base license “Project Service Automation” with attached licenses from the different Customer Engagement applications such as Customer Service, Sales, or Field Service).
For appropriate licensing programs and combinations see the latest Microsoft Dynamics licenses guide.
Pricing: Dynamics 365 Project Service Automation is $95 per user/month
Commerce is a retail management tool, designed for enterprise-size retailers to manage their end-to-end operations from back-office, delivery, and call centers to customer engagement in a physical store. Microsoft launched the “Connected Store” concept in September 2019. It enables store employees and managers to provide outstanding customer service shopping experiences through real-time data insights.
Pricing: Dynamics 365 Commerce is $180 per user/month and $30 per user/month subsequently qualifying (Attach). See the below screenshot from Microsoft’s March 2020 price list.
Dynamics 365 Fraud Protection is a cloud-based anti-fraud solution for medium to large-sized organizations worldwide, designed to help lower fraud-related costs, increase profits, and improve customer experience.
Fraud Protection is licensed per tenant and costs $10,000 per tenant/month; it’s an essential retail license for safeguarding business operations. It comes with an entitlement of 100K assessments per month.
Human Resources is Microsoft’s HR tool, that helps you connect employees across departments, and enable their self-service capabilities (training, performance tracking, time-off request etc.). Compensation plan creation, leave and absence reporting, benefit administration, and more help HR managers empower employees.
Pricing: Dynamics 365 for Human Resources is $120 per user/month and has minimum requirements. Attach licenses can be purchased for $30 per user/month.
Applications that make up the Power Platform are built using Microsoft CDS and can, therefore, connect to Dynamics 365 instances. Microsoft Power Platform applications include Power BI, Power Apps, Power Automate, and Power Virtual Agents.
Microsoft Power BI is a comprehensive business analytics service fully integrated with your Dynamics 365 applications. Power BI provides data visualizations through simple adjustable dashboards and configurable reports.
Please click here to learn more about Power BI pricing.
With Microsoft Power Apps, you can easily build professional apps using a low-code approach. Microsoft Power Apps has two different license models, shown below.
Build integrated workflows that help increase productivity and manage specific business processes. It is a no-code tool that enables everyone to build workflows in a cloud-based environment where no data is lost. With Power Automate you can easily automate time-consuming tasks and leverage Microsoft’s AI capabilities. Power Automate is licensed by the user and by the flow.
Virtual Agents is a new Microsoft tool that allows you to build chatbots with no code. The intelligent chatbots use AI technology and require minimal maintenance. Virtual Agents can be used to communicate with your customers and internally to help guide employees through different tasks.
The Power Virtual Agents are priced per tenant/month and cost $1,000. It includes 2000 Chat sessions. if additional sessions are needed, they can be purchased separately.
Microsoft Dynamics 365 has two types of SLs (the only exception is Marketing application, which is licensed per tenant – see licensing guide)
User SL: The primary licensing is by User SLs, which are assigned on a “named user” basis which is different from AX4, AX2009, and AX2012. This means that each user must have a named Dynamics 365 application subscription and it cannot be shared between multiple Dynamics 365 users even though they are not signed simultaneously. You can access different devices with the same subscription.
There are two user classifications in Dynamics 365:
Full user-
Additional users-
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