Understanding October 2019 Dynamics 365 Licensing Changes

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 upgrade calculation and mapping of Dynamics AX user types to the new Dynamics 365 unified apps.

The license blog posts is aimed at helping your team 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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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)

Based on your user needs you can choose from four Dynamics 365 Base Licenses as the foundation for your Microsoft Dynamics 365 license subscription:
- - Dynamics 365 Supply Chain Management (20 user minimum)
  - 365 Finance (20 user minimum)
  - 365 Retail (20 user minimum)
  - 365 Talent (5 user minimum)
If you are already familiar with the current Microsoft Dynamics 365 Finance and Operations application licensing, you can see that the four Base Licenses above means that the current 365 Finance and Operations application is hereby split into:
- - Dynamics 365 Supply Chain Management
  - Dynamics 365 Finance
Going back to the new Attach Licenses model (365 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 Dynamics 365 Attach License to the Base License. For example, let’s say you have 30 accounting users requiring the Finance 365 Base License as their foundation. Among your 30 accounting team users you may have application residing in one of the 365 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 Dynamics 365 Attach Licenses.

Start with your Dynamics 365 Base License

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

October 2019 Dynamics 365 licensing summary

The Dynamics 365 Customer Engagement Plan and Dynamics 365 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: Dynamics 365 Supply Chain Management AND Dynamics 365 Finance.
365 Sales, 365 Customer Service, Field Service, Project Service Automation, Marketing, Retail and Talent will continue to be offered as standalone Dynamics 365 applications.
New terminology is introduced for application naming across Dynamics 365 CRM and 365 ERP apps
New and renewing customers will be able to purchase individual applications as Base and Attach Licenses.
The Dynamics 365 Base license is the first application purchase for an individual user within the company.
The Dynamics 365 Attach licenses are additional apps that may be purchased after the Dynamics 365 Base license is acquired.
New Dynamics 365 licensing pricing is introduced