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Microsoft Dynamics 365 Licensing Types

Learn about Dynamics 365 licensing types for all ERP & CRM applications

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Microsoft Licensing

Dynamics 365 CRM and ERP Applications

Microsoft Dynamics 365 licensing types and options are evolving quickly as part of the Microsoft Dynamics roadmap for ERP, CRM, and Power Platform applications. The Microsoft Dynamics 365 suite of apps is designed to unify Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) into a set of purpose-built applications for Sales, Customer Service, Supply Chain Management, Finance, and more. This integration helps businesses manage their operations and address specific business needs through enhanced business management and business intelligence capabilities.

With so many relevant Dynamics 365 apps to choose from, having the right information about Microsoft solution pricing is critical for calculating your Dynamics 365 licensing cost based on your Microsoft user needs. Dynamics 365 customer engagement tools, for instance, are essential for managing interactions with end-consumer of Dynamics 365 services, ensuring that every customer relationship is meticulously maintained.

From October 1, 2019, Microsoft has changed how Microsoft Dynamics 365 (D365) apps are priced. Microsoft Dynamics 365 named users are classified into 4 groups: Full, Activity, Device, and Team Member users—each designed to manage specific business requirements. Existing Microsoft CRM and Dynamics AX customers upgrading to Microsoft Dynamics 365 transition to Dynamics 365 licenses as part of their cloud migration, focusing on primary licensing methods to better align with their business processes.

The new Microsoft Dynamics user pricing gives your company more flexibility in buying the exact type of Dynamics 365 users needed. You only pay the monthly Dynamics 365 license cost for the number of named Dynamics 365 users you need. For existing Microsoft Dynamics AX users planning a Dynamics 365 upgrade, how you decide to configure user tiers for your new Microsoft Dynamics CRM and ERP apps is key to calculating your future Microsoft licensing cost. Managing these user types effectively ensures that users in an organization are assigned licenses that align with their roles, particularly those who require full user access.

Let Avantiico’s Cloud Licensing Team help your team better understand your full Microsoft Dynamics 365, Azure, and Microsoft 365 licensing options so that you can determine the right offerings for your organization.

Microsoft Dynamics 365 Apps overview for 365 Finance, 365 Supply Chain Management, 365 Sales, 365 Customer Services

Microsoft Dynamics 365 Licensing types Model Released March 2020
Microsoft Dynamics 365 Apps overview for 365 Finance, 365 Supply Chain Management, 365 Sales, 365 Customer Services

Dynamics 365 Users & Dynamics 365 Devices

The core Microsoft Dynamics 365 applications, (Sales, Customer Service, Field Service, Project Service Automation, Finance, Supply Chain Management, Commerce, and Human Resources), are licensed based on per user pricing and monthly Dynamics 365 application subscriptions.

Dynamics 365 has two main types of Microsoft Subscription Licenses (SL) (the only exception is the Dynamics 365 Marketing application, which is licensed per Microsoft tenant – see licensing guide). The Microsoft User SL is for your named business users, and each Dynamics 365 user gets a named subscription. Named user subscriptions cannot be shared between multiple users. For some business processes, you can avoid named user subscriptions and have multiple users share a D365 Device subscription.

The Microsoft Dynamics Device SL is designed so any number of your users can access a Dynamics 365 device without the need for named user licenses. This can be a very cost-effective way to extend rich Microsoft Dynamics 365 features to many warehouse or production users working in shifts, for example.

Microsoft Dynamics 365 ERP app pricing: the Dynamics Finance Base User pricing is $180 per month per user. Dynamics 365 Supply Chain Management base users and Dynamics 365 Commerce base users are also $180 per month per user.

Microsoft offers multiple ways and licensing discounts for your business users to add additional features to their individual user subscriptions. As an example, a Dynamics 365 Finance user needing access to Supply Chain features as well can add Supply Chain Management with an additional Dynamics 365 Attach License for the ERP apps. The attached licenses are $30 extra per month.

The Microsoft Dynamics 365 Device license is priced lower than the full user at $75 per month per Microsoft device license. Full users are the users whose work requires using the feature-rich business app’s functionality

Microsoft Dynamics 365 CRM apps: The Base User pricing is $95 per month for Sales, Customer Service, Field Service, Project Services Automation users.

Microsoft CRM apps business users can also add features with great discounts using the CRM Attach Licenses at only $20 per month.

Dynamics 365 Price List for 365 Finance, 365 Supply Chain Management, 365 Sales, 365 Customer Services

Microsoft Dynamics 365 Licensing Types graph
Dynamics 365 Price List for 365 Finance, 365 Supply Chain Management, 365 Sales, 365 Customer Services

D365 Full User

  • Dynamics 365 users who need access to most of the Microsoft Dynamics application functionalities residing within their base application are termed full users
  • Accounting users, Salespeople, portions of customer service representatives, controllers, HR managers, and operation/production managers are examples of full users
  • Finance employees would need a full user license to their respective Dynamics 365, which could be finance, supply chain management, sales enterprise, customer service enterprise, field service, etc.
  • As a variant, you can also choose to purchase professional instead of Enterprise licenses, depending on your needs

D365 Attach License

  • Once a Dynamics 365 Full User has a Dynamics 365 Base license, they may need more features contained in other Dynamics 365 Apps. These features can be added as an Attach license.
  • Business scenario: An accounting manager needs access to the full features of Dynamics 365 production or warehouse management. Features. The accounting manager would first purchase a 365 Finance user as a base user license and then purchase the second as an attach license, for a much lower cost.
  • For users who need to purchase a Base and an Attach license, the user must purchase the higher-priced Dynamics 365 license as the Base Dynamics license.

D365 Additional Users

  • In many manufacturing or distribution businesses, additional Microsoft Dynamics 365 users can represent a significant portion of the total Microsoft Dynamics user count. Additional users are business users accessing the system, for example to read reports or input data, but may not necessarily need full functional access
  • Those employees would need a Dynamics 365 Team Members, Device or Activity license
  • A Team Member License would also grant the user access to the respective Team Member app in the Unified Interface
Download Dynamics 365 Licensing Guide

Microsoft Dynamics 365 Pricing for Activity and Team Members

Full User Vs. Additional User
Microsoft Dynamics 365 Pricing for Activity and Team Members

Additional Dynamics 365 users starting at $8 per month

Across all Dynamics 365 apps, including Sales, Customer Service, Human Resources, Commerce, Supply Chain Management and Dynamics 365 Finance, you can have more “light” users and this way, all your business users can access the capabilities they need at a very low user cost. Starting at $8 per user/month, Microsoft offers a Dynamics 365 Team Member subscription license (SL). Users needing more access can possibly fit into a Microsoft Dynamics 365 Activity user license priced at $50 per named user/month.

Dynamics CRM or Microsoft Finance & Operations Team Member licenses are designed for business users who may not be tied to a particular function and users who require basic Dynamics 365 functionality. A D365 Team Member user can read Dynamics 365 data generated by other business users across your Dynamics 365 Finance, Supply Chain Management, Commerce, Human Resources, and Customer Engagement (CRM) Applications. Examples of Microsoft pre-approved business application scenarios for Team Members: Employee Self-service workflows and select Microsoft Project Service features such as Apply for Project, Report Time & Expense for Projects, Update Project Tasks, etc.

Dynamics 365 Activity users are priced at $50 per month and available for workflows across D365 Finance, Supply Chain Management, Commerce and Human Resources applications. The Dynamics 365 Activity Subscription is also a named user subscription.

The $50 per month Dynamic 365 Activity user license is intended to help keep licensing costs down. The Dynamics 365 Activity user license is for those business users who require more capabilities than the Team Members license, however, still do not require the full Dynamics ERP feature sets and use rights included in a $180 per month Finance or Supply Chain Management full user license. 

Full users include sales people, customer service representatives, finance employees, controllers, and supply chain managers. Such users have also been referred to in the past as power or pro users. These Full Users are licensed with a Dynamics 365 Application subscription.

Microsoft ERP and CRM Licensing
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Microsoft Trial Licenses

Get help from Avantiico with evaluating the benefits of Microsoft CRM and ERP applications. Your team can start exploring your Microsoft Dynamics 365 solution with a Dynamics 365 Trial or Avantiico Azure environment.

Microsoft offers free trials for Microsoft Dynamics 365 (CRM) Applications: Sign up for a free 30-day trial of Dynamics 365 Sales, 365 Customer Service, 365 Field Service or 365 Marketing.

Microsoft Free Dynamics 365 Trials (ERP): sign-up for a free 30-day trial of Dynamics 365 Finance, Dynamics 365 Supply Chain Management, 365 Commerce, and Dynamics 365 Human Resources.

Your business users likely have different licensing needs for Microsoft Dynamics 365 applications with a mix of Full Users, Activity, Devices, Team Members, and Attach Licenses. Avantiico subject matter experts help you define the relevant Microsoft Dynamics 365 applications and licenses for your business.

Avantiico helps your team through the step-by-step provisioning of Microsoft Dynamics 365 environments for any purpose. You can also get help with Microsoft Azure Free Trials or Microsoft Azure tenant design and Microsoft Azure Subscriptions.

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