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Understanding October 2019 Dynamics 365 Licensing Changes

Lauge Mathiasen

Lauge Mathiasen

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.

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This Dynamics 365 licensing blog post describes the latest Microsoft Dynamics 365 Finance & Operations licensing pricing and user policies introduced by Microsoft in August 2019. 

The blog also looks at the latest Microsoft Dynamics 365 for Finance and Operations licensing guide. The Dynamics 365 licensing pricing referenced here is based on the standard Microsoft D365 user prices. This means that if you are already running Dynamics AX2012 (or AX2009 etc.) and current on your Dynamics AX enhancement plan, Microsoft is offering existing Dynamics AX users like you significant D365 transition discounts compared to the standard D365 Unified Operations user cost mentioned here. Finally, the Microsoft Dynamics 365 licensing changes take effect October 1, 2019, so existing Dynamics AX users should act  now to benefit from Dynamics licensing discounts.

If your organization is running Microsoft Dynamics AX2012 or on earlier versions of Microsoft Dynamics AX or Axapta, this Microsoft licensing blog provides you with the new Dynamics 365 licensing terminology. This will help you prepare for your Microsoft Dynamics 365 licensing transition calculation and mapping of Dynamics AX user types to the new D365 Unified Operation Users. 

The goal of this blog posts is to assist your team with making better-informed decisions when renewing your Microsoft Dynamics AX licensing and help you with your Microsoft Dynamics 365 Cloud transition calculations. This blog post is also relevant to new users of Microsoft Dynamics D365

The Avantiico Microsoft Cloud Architects are here to answer your questions and assist you with calculating tailored scenarios for your organization, see contact information below.  

Note: This article has been updated to reflect the Microsoft Dynamics 365 Licensing Guide and Dynamics 365 Licensing cost published in August 2019.

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Understanding 2019 Dynamics 365 Licensing Changes

Starting October 2019, Microsoft will offer organizations a new way of licensing the suite of Microsoft Dynamics 365 applications and D365 Unified Operations. With the new Microsoft D365 licensing model your organization can piece together your Dynamics 365 subscription in a flexible way with the introduction of Base Licenses for Dynamics 365.  Business users with broader application needs can extend their application use by adding Attach applications to their D365 Unified Operations Base License.

The new Microsoft Dynamics 365 Unified Operations licensing subscription terminology consists of the following main D365 user types:

  • Microsoft Dynamics Unified Operations Base Licenses (D365 Base UO Licenses)
  • Microsoft Dynamics Unified Operations Attach Licenses  (D365 Attach Licenses)
Attach and Base License Model for Microsoft Dynamics 365
Attach and Base License Model for Microsoft Dynamics 365
  • Based on your user needs you can choose from four Dynamics D365 Base Licenses as the foundation for your Microsoft Unified Operations license subscription:

    If you are already familiar with the current Microsoft Dynamics D365 Finance and Operations application licensing, you can see that the four Base Licenses above means that the current D365 Finance and Operations application is hereby split into:

      • D365 Supply Chain Management
      • D365 Finance

    Going back to the new Attach Licenses model (D365 Attach Licenses), once you have established the Base Licenses needs for your users, you can offer subsets of your users additional applications by “attaching” one or more D365 Attach License to the Base License. For example, let’s say you have 30 accounting users requiring the Finance D365 Base License as their foundation. Among your 30 accounting team users you may have application residing in one of the D365 Base licenses. Let’s say that 10 of the 30 named accounting users also have a need for features residing in the Supply Chain Management application, then you Attach 10 Supply Chain Management subscriptions.

    The following 3 Unified Operations Base Licenses can also be considered an Microsoft D365 Attach Licenses.

Start with your Base License - add more

In new Microsoft Dynamics 365 licensing model renewing Microsoft customers will be able to purchase individual applications as Base and Attach licenses. 

The Base license is the first application purchased for an individual user within a customer’s organization. The Attach licenses are additional applications that may be purchased after the Base license is acquired

A Summary of October 2019 Microsoft D365 Licensing Changes

  • The Dynamics 365 Customer Engagement Plan and D365 Unified Operations Plan (covered in our earlier blog posts), and Dynamics 365 Plan SKUs will be removed from all price lists
  • Dynamics 365 Finance and Operations will be split into two individual applications: D365 Supply Chain Management and D365 Finance. 
  • Sales, Customer Service, Field Service, Project Service Automation, Marketing, Retail and Talent will continue to be offered as standalone applications.
  • New terminology is introduced for application naming 
  • New and renewing customers will be able to purchase individual applications as Base and Attach Licenses. 
  • The Microsoft D365 Base license is the first application purchase for an individual user within the company. 
  • The Microsoft D365 Attach licenses are additional apps that may be purchased after the Base license is acquired. 
  • New Dynamics 365 licensing pricing is introduced 
     

Download the October 2019 Dynamics 365 Licensing Guide

Updated
October 2019
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