Microsoft Dynamics 365 Price Update: First D365 Price Change in Five Years

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Aaron Klein

Introduction

Microsoft Dynamics 365 is receiving its first pricing update in over five years. This adjustment is not just a change in numbers; it reflects Microsoft’s platform’s significant advancements, delivering enhanced functionalities, AI, Copilot, and more for customer relationship management (CRM) and enterprise resource planning (ERP).

Why is Microsoft Updating the Dynamics 365 Licenses Price?

Since the last Dynamics 365 licensing price revision, the Microsoft Dynamics 365 product suite has undergone remarkable innovation, and thousands of new functionalities have been added. The platform now boasts thousands of new features and enhancements across essential business areas like marketing, sales, customer service, field service, finance, operations, and supply chain management. This evolution underscores Microsoft’s commitment to product development, continuing to bring you state-of-the-art innovation in the Dynamics 365 Solution ecosystem.

Among these advancements, the introduction of Microsoft Copilot stands out. Microsoft AI Copilot delivers AI-powered insights and streamlined processes directly to you.

If you are living in, for example, Dynamics 365 Finance, you will already have AI and beta copilot features to help in areas like collection, cash flow forecasting, and more. Organizations of all sizes and industries leverage these tools to optimize operations and elevate customer experiences. With each update, Dynamics 365 aims to boost your efficiency and collaboration, enhancing your customer interactions and operational excellence through intelligent automation and data-driven decision-making.

Microsoft Dynamics 365 Price Update Details

The new pricing structure of Microsoft Dynamics 365 License Types, publicly announced by Microsoft in April 2024, will take effect on October 1, 2024. Here’s a breakdown of the price increases for some of the affected products:

Oct 2024 Microsoft dynamics 365 Price update details for D365 licensing cost

The cost of on-premises Dynamics 365 customer engagement and operations products (GP, AX, NAV, SL) will rise in alignment with the percentage increase of their cloud-based counterparts. However, prices for cloud products not included in the table above, such as Microsoft Dynamics 365 Business Central, will remain unchanged.

Microsoft Dynamics 365 Price Update Details

Starting October 1, 2024, Microsoft Dynamics 365’s global pricing updates will impact you, whether you’re a new or existing customer:

Existing Dynamics 365 Customers:

Your subscription will renew with new pricing starting October 1, 2024, but your current pricing will remain until your first renewal after that date.

New Dynamics 365 Customers:

All new contracts initiated from this date will incorporate the updated pricing.

U.S. Government Clients:

Your list prices will gradually increase to align with commercial rates, starting with a 10% increase on October 1, 2024, and a subsequent smaller increase on October 1, 2025, to match the commercial pricing outlined in the table above. This staged approach aims to ease the transition.

How to Prepare:

Check your renewal dates. Plan your budget to match the new pricing.

Government agencies adjust your financial forecasts to include phased price increases.

Contact Avantiico, Microsoft Dynamics 365 Partner. We’re ready to assist with personalized advice and strategies.

Complimentary Consultation

Learn more about the upcoming Dynamics 365 price changes and explore your licensing options with one of Avantiico's Sr. advisors.

Staying Ahead of the Curve with Microsoft Dynamics 365 One Version Updates

To stay at the forefront with your Dynamics 365 solution, keeping up with the latest features and updates is crucial. Start by delving into our comprehensive guide to the Microsoft Dynamics 10.0.39 Service updates.

This year, there’s more than just pricing changes to keep on your radar. Microsoft has also introduced a new One Version Update cadence for 2024. Staying abreast of these updates is incredibly important to ensure that your operations are unaffected and that you are getting the most out of your Dynamics solutions. You can find details about these changes here – Understanding the New Microsoft Service Update Release Schedule for Dynamics 365 Finance & Supply Chain Management: What You Need to Know for 2024

Contact the Avantiico Managed Services team for more information about upcoming releases or any update cadence-related questions you may have – our team of experts is ready to assist you.

Optimizing Your Microsoft Investment: Dynamics 365 Licensing Review

The price update might prompt you to re-evaluate your current Dynamics 365 licensing strategy. Avantiico’s Managed Services team offers comprehensive Dynamics 365 Licensing Reviews to help you maximize your Microsoft Dynamics 365 investments. This service ensures you’re compliant and using licenses effectively, potentially leading to significant cost savings.

Conclusion

As we look towards the implementation of the new Dynamics 365 pricing on October 1, 2024, we understand that change can bring about questions and strategic re-evaluations. At Avantiico, we are committed to ensuring your transition to the updated pricing model is as seamless as possible. Our team of experts is on standby to guide you through these changes, help you understand the implications for your business, and ensure that you continue to receive the maximum value from your Dynamics 365 investment.

Embrace this evolution as an opportunity to review your current use of Dynamics 365 and explore new ways to optimize your operations.

With the support of Avantiico, Microsoft Solution Partner, you can stay ahead, not just maintaining but enhancing your competitive edge in a dynamic marketplace.

Do not hesitate to contact us for any inquiries or to schedule a consultation.

Stay current, stay informed, and let’s navigate the future of Microsoft Dynamics 365 together.

Complimentary Consultation

Learn more about the upcoming Dynamics 365 price changes and explore your licensing options with one of Avantiico's Sr. advisors.

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