Guide to Dynamics 365 Pricing & Licensing

Morten Logstrup

Morten Logstrup

The Microsoft Dynamics AX/D365 Support Team at Avantiico is focused on solving our client’s problems, from daily issues to large and more complex problems. Cindy is a true AX veteran and hold 20 years dedicated Senior Consulting experiences for Microsoft Dynamics AX Software.

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Note: This blog post reflects Dynamics 365 licensing pricing and changes valid up until the date of the post- April 6th, 2020. 

Microsoft Dynamics 365 is a powerful Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) solution that provides  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 at the number of licenses that must be purchased.

As mentioned above, the below pricing and documentation is subject to change at any time and does 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 legacy solution, your licensing needs will differ from the 2020 Dynamics 365 pricelist covered today. 

Dynamics 365 Business Applications

As seen 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.

The above graphic from the April 2020 Dynamics 365 Licensing Guide, shows you a complete overview of base licenses and attach licenses. Attach licenses are further explained in the blog post and in the end there will be an aggregated view of base and attach license cost.

Dynamics 365 Customer Engagement (CE) Applications

Dynamics 365 Sales Enterprise

Sales Enterprise enables sales directors, account managers, and salespersons to manage accounts, establish account structures that bring contacts, leads opportunities and product details into one system. With Dynamics 365 Sales Enterprise, you can handle complex sales processes that help you 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. 

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

Dynamics 365 Sales Insights is licensed per user and not per tenant. With Dynamics 365 for Sales Insights you can improve your customer engagement and make smarter decisions while leveraging embedded analytical insights. 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. 

Dynamics 365 Sales Insights is $50 per user/month. (Source: April 2020 Dynamics 365 Licensing guide)

Dynamics 365 Marketing Relationship Sales Solution (MSRs)

MRSs is licensed per user and allows sales individuals to establish faster relationships with new customers not familiar 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:

  • MRSs Plus includes Sales Enterprise and LinkedIn Sales Navigator Enterprise
  • MSRs includes Sales Enterprise and Linkedin Sales Navigator Team

Dynamics 365 Marketing Relationship Sales is $130 per user/month.

 

Dynamics 365 Customer Service

Dynamics 365 Customer SErvice can be purchased as an Enterprise or a Professional subscription. Dynamics 365 Customer Service includes complex capabilities that are configurable and 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.

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.)

Dynamics 365 Customer Service Insights

Different from 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 all of your different customer data sources and view them within the application. 

Dynamics 365 Customer Service Insights is $75 per user/month. 

Chat for Dynamics 365 Customer Service

On top of Customer Service, there is a subset of new functionalities available that are worth mentioning. Chat for Dynamics 365 Customer Service is an add-on capability for the Customer Service Enterprise application. 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 require Power BI Pro license or higher. Please see Power BI licenses for more information. 

Dynamics 365 Digital Messaging

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 per user. 

Dynamics 365 Field Service

Organizations with field-based service teams such as windmill engineers, maintenance employees, offsite mechanics etc. is recommended to use Dynamics 365 Field Service. There is a tight integration between your Customer Service tickets/cases, which allows the field workers to get live insights and deliver results faster. Field Service is available on all mobile devices which gives users customer experience powerful tool.

Dynamics 365 Field Service is $95 per user/month and $20 per user/month subsequently qualifying (Attach license). 

Dynamics 365 Pricing: Field Service Application

Marketing

The new Marketing application is licensed per tenant and have to be assigned per user through the admin portal. With Marketing you can create campaigns, personalize the customer journey run business-unit-level marketing and create events very simple.

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 Licensing Guide

Dynamics 365 Finance, Supply Chain Management (SCM), Commerce and Human Resources

Dynamics 365 Finance

One of Microsoft ERP flagships applications is Dynamics 365 for Finance. Finance enable organizations to monitor the performance of local, international and global financial operations – in real-time! Finance allows you to predict future financial outcomes and create decisions build on data analytics. Microsoft’s Finance application has deep integrations with other Dynamics 365 applications such as CE, Supply Chain Management (SCM), Office 365 and Azure.

 Dynamics 365 Finance is $180 per user/month and $30 per user/month subsequently qualifying (Attach). See below screenshot from Microsoft’s March 2020 price list.

Dynamics 365 Finance Pricing

Dynamics 365 Supply Chain Management (SCM)

Supply Chain Management is Microsoft’s other profound ERP application. I help’s manufactures, distributors, food production and retailers with real-time insight and information, needed to operate nimble, proactive and flexible no matter size. AI and IoT insights are used to unify data within SCM, so that you maximize efficiency, product quality, and profitability.

Dynamics 365 for Supply Chain Management is $180 per user/month and $30 per user/month subsequently qualifying (Attach). 

Dynamics 365 Project Service Automation

Project Service Automation is a strong and comprehensive project management tool that gives you the ability to combine customer engagement and complex end to end projects.

Project Service Automation cannot be purchased as an attach license but as a base license. You may combine the base license “Project Service Automation” with attach licenses from the different Customer Engagement applications such as Customer Service, Sales or Field Service).

For appropriated licensing combinations see the latest Microsoft Dynamics licenses guide.

Dynamics 365 Project Service Automation is $95 per user/month

Dynamics 365 Commerce (Previously Retail)

Commerce is a retail management tool, designed for enterprise size retailers to manage their end-to-end operation from back-office, delivery, 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.

Dynamics 365 Commerce is $180 per user/month and $30 per user/month subsequently qualifying (Attach). See below screenshot from Microsoft’s March 2020 price list.

Dynamics 365 Fraud Protection

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 cost $10,000 per tenant/month. It comes with an entitlement of 100K assessments per month.

Dynamics 365 Human Resources (Previously Talent)

Human Resources is Microsoft’s HR tool, that help you connect employees across departments, enable their self-service capabilities (training, performance tracking, time-off request etc.). Compensation plan creation, leave and absence reporting, benefit administration and much more than help HR managers empower employees.

Dynamics 365 for Human Resources is $120 per user/month and have minimum requirements. Attach licenses can be purchased for $30 per user/month.

Understanding Microsoft's Power Platform

Applications that make up the Power Platform are built using 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 Platform With Connectors

Power BI

Microsoft Power BI is a comprehensive business analytics service fully integrated with your Dynamics 365 applications. Power Bi provide data visualizations through simple adjustable dashboards and configurable reports.

Please click here to learn more about Power Bi pricing.

PowerApps Pricing

With Microsoft Power Apps you can easily build processional apps with a low-code approach. Microsoft Power Apps has two different licenses models, shown below.

Power Automate (Previously Flow)

Build the integrated wokflows that help increase productivity. It is a no code tool that enable 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 licenses by user and by flow.

Power Virtual Agents

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 also internally to help guide employees through different tasks.

The Power Virtual Agents are prices per tenant/month and cost $1,000. It includes 2000 Chat sessions. if additional sessions needed that can be purchased separately.

Understanding Dynamics 365 License Types

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 is required to have a named subscription and cannot be shared between multiple users even though they are not signed at the same time. You can access different devices with the same subscription.

There are two user classifications in Dynamics 365:

Full user-

  • Users that need access to most of the application functionalities is called a full user.
  • Salespeople, customer service representatives, finance employees, controllers, HR Managers, and Operation/Production managers would be examples of full users
  • Those employees would need a full user license to Dynamics 365 Sales Enterprise, Customer Service Enterprise, Field Service, Project Service Automation, Finance, Supply Chain Management, Commerce, or Human Resources
  • You can also choose to purchase professional licenses, depending on your needs

Additional users-

  • In many production or manufacturing organizations additional users represent a large amount of the total organization. Additional users may be users that access the system, read and with access to reports, and don’t need full functional access
  • Those employees would need a Dynamics 365 Team Members, Device or Activity license
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