Microsoft Dynamics 365 Licensing

Dynamics 365 licensing offers a flexible user subscription model with known license pricing and cost-effective feature packages for your business.

Dynamics 365 Licensing Pricing

On October 1 2019 Microsoft made changes to how Microsoft Dynamics 365 (D365) product family is sold and priced for both existing Dynamics AX customers and new Dynamics 365 users alike. Based on Microsoft’s customer feedback, the new Microsoft D365 licensing and user pricing options gives your company more flexibility. You only pay for the Microsoft subscriptions you 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 about Dynamics 365 license pricing, D365 license upgrade offers and licensing cost optimization is critical to making the most out of the D365 family of products. 

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 find the right offerings 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 termed full users
  • Accounting team members, Salespeople, portions of customer service representatives, controllers, HR managers and operation/production managers are examples of full users
  • Those employees would need a full user license to their respective Dynamics 365 Enterprise application (Finance, Supply Chain Management, Sales Enterprise, Customer Service Enterprise, Field Service, etc.)
  • You can also choose to purchase professional instead of Enterprise licenses, depending on your needs

Attach License

  • Once a customer has purchased a Base license, they made add one or more Attach licenses.
  • Business scenario: An organization has a user that will be purchasing both the Dynamics 365 Retail Application and the Customer Service Application. They would first purchase on license as a base license and then purchase the second as an attach license, for a much lower cost.
  • In the case that a customer wants to purchase both a Base and an Attach license, they must purchse the higher priced license as the Base license.
  • The major benefit of this is the value-offer of organizations paying only for the applications users engage with the most.

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

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