What you should know: New Licensing model for Microsoft Dynamics 365 from October 2019
From October 1st,2019, Microsoft’s licensing model for Dynamics 365 has changed. Initially the customers had the option of purchasing licenses for the Unified Operations Plan, Customer Engagement Plan. These plans where associated with Business Applications at a standard price per user. But after the new pricing release the Unified Operations Plan and Dynamics 365 Plan will not be offered in the above-mentioned form.
So, why is there a change in the licensing model?
Microsoft is always in support of innovation in technology and always heads in developing Dynamics 365 offering. For instances, the innovation and research in Machine Learning, Mixed Reality and Artificial Intelligence (Customer Insights, Sales Insights) lets the customer to make and customize the licensing (mix and match).
This mix and match of Microsoft Dynamics 365 business applications lets you choose the relevant application for your business.
THE NEW LICENSING MODEL
The new licensing model requires the customers to have a basic license. This basic license pertains to the department in which the employee works mainly e.g. Microsoft Dynamics for Finance for a Finance employee. This basic license is purchased at a standard price. There are instances where the same employee also works or as some functional work in other business area in the organization. In such cases the employee as to “Attach” a new license which can be purchased at a fraction of the standard price. This model is also termed as the “ A La Carte Model”.
This new change in the licensing model will enable you as a customer to take licenses for the individual tasks for an employee in your organization. The core area of functionality of Sales, Field Service, Customer Service, Supply Chain Management, Project Service Automation, Retail, Finance and Talent remains the same.
What does the new licensing model mean for you as an existing customer?
There is no change to the existing Dynamics 365 customer agreement. The purchase of the application remains the same for 12 months followed by the role out of new license model on renewal. On renewal, a basic license along with one or more attach license must be purchased as per the organization requirement. This renewal process will provide you with an opportunity to analyze and reevaluate the overall application requirement and optimize them accordingly.
Initially,the new license plan model will make you feel its complex. However we at Business Experts Gulf believe that the new offers in the Dynamics 365 applications is made in a well thought-out way and it offers you business applications based on your needs and usage.
We assure you to provide you with the best options based on your organization’s licensing plan in parallel with the different functions for your company and your employees.