Microsoft Dynamics 365 Licensing

Microsoft Dynamics 365 licensing offers a flexible subscription-model to accommodate diverse and shifting roles in a secure and cost-effective way.

Dynamics 365 Licensing Changes

In October 1 2019 Microsoft made changes to how Microsoft Dynamics 365 (D365) product family is sold and priced for both existing customers and new users alike. Based on Microsoft’s customer feedback, the new D365 licensing and pricing options gives companies more flexibility to only pay for the products that they need while allowing for new features and functions to be added in a more cost effective way.

Now, more than ever, having the right information and guidance is critical to making the most out of the D365 family of products. Let Avantiico’s Cloud Licensing Team help you better understand your licensing options so that you can find the right offering for your organization.

Microsoft Dynamics 365 Licensing Model Released March 2020
Microsoft Dynamics 365 Licensing Model Released March 2020

Dynamics 365 Licensing Types

Microsoft Dynamics 365 has two types of SLs, or users (the only exception is the Dynamics 365 Marketing application, which is licensed per tenant- see licensing guide). The User SL is the primary licensing, assigned on a “named user” basis which is different from how licensing was in AX4, AX2009 and AX2012. This means that each user is require to have a named subscription and cannot be shared between multiple users even if they are not assigned at the same time. You can, however, access different devices with the same subscription.

Full User

  • Users that need access to most of the application functionalities are called full users
  • Salespeople, customer service representatives, finance employees, controllers, HR managers and operation/production managers would be considered xamples of full users
  • Those employees would need a full user license to their respective Dynamics 365 Enterprise application (Sales Enterprise, Customer Service Enterprise, Field Service, etc.)
  • You can also choose to purchase professional instead of Enterprise 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 reports, 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
Full User Vs. Additional User

Light Usage Subscriptions for Additional Users

While continuously updating its Licensing, Microsoft has considered additional users who may not require access to as many apps as Full Users. Microsoft refers to Light Users as Team Members and offers a flexible and affordable way to involve your entire organization without adding un-necessary overhead costs. These individual users can be licensed with Dynamics 365 Team Members or Dynamics 365 Operations – Activity SL for Dynamics 365 for Talent and Dynamics 365 for Retail subscriptions. 

Flexible Licensing for Growing Businesses

The three licensing scenarios above (App Subscriptions, Plans and Team Members) can be combined. For example an organization could choose their license types by role or by individual apps and mix and match those licenses across those business. Certain features and capabilities are not available in standalone Dynamics 365 Plans and have to be licensed through Unified Operations Plan applications. Avantiico can help your business determine which licenses are right for you, the purchase requirements involved all-while considering your company’s growth in the Microsoft ecosystem along the way. 

Licensing Blog Blosts