Dynamics 365 license changes – from 1 October 2019

July 22nd, 2019 by Stephen Jones Leave a reply »

There was a lot of exciting product and technology news form Microsoft’s Inspire event in Las Vegas this month.
Not so inspiring for many of the audience was the announcement of changes in licensing to take effect as early as 1 October this year.

if you are an existing Dynamics 365 customer on the cloud for any app then you are affected, as are those intending to buy.

For now there is no change to on-premise licenses (some D365 apps are only available on the cloud).

Effective October 1 , 2019, Customer Engagement Plan, Unified Operations Plan, and Dynamics 365 Plan
SKUs will be removed from all price lists. Finance and Operations will be split into individual applications – one for Supply Chain Management, and one for Finance. This change will enable customers to purchase suitable core workload application(s) for individual user
needs going forward.

Core workload Business Applications are Sales, Customer Service, Field Service, Project Service Automation, Supply Chain Management, Finance, Retail, and Talent. The current plan offerings for :Customer Engagement Plan, Unified Operations Plan, and Dynamics 365 Plan be removed from all channels and for all licensing segments.

The new ‘ la carte’ approach is user license (USL) based.

Base license: the first Business Application purchased at the standard price.
Attach licenses are the additional USL application(s) at a flat price of:
$20 per Customer Engagement application
or
$30 per Unified Operations application.

• Each Attach license can only be assigned to a user with the prerequisite Base license.
• When purchasing multiple Business Applications, the Base license must be the higher priced license.
• Each user may only have one Base license.
• Attach license:USL application(s) incrementally purchased after the Base license. Users may have
as many Attach licenses as needed.
• Base and Attach licenses are identical in their core capabilities and are only differentiated in price. .

Business Applications that can’t be purchased as Attach licenses:
Core workload Business Applications:
• Project Service Automation
• Marketing
• Talent
Non-core workload applications:
• Customer Insights
• Microsoft Relationship Sales solution
• Sales Insights
• Marketing Additional Application
Customer Service Chat
• Resource Scheduling Optimization
• comprehensive hiring
• Order Lines
• Forms Pro
• All capacity add-ons

Customers seeking one Business Application per user should only purchase a Base license per user.
Single Business Applications priced between $50-$180 are less expensive than Customer Engagement Plan ($115) or Unified Operations Plan ($190) today.

For existing customers there is no immediate change to customers’ existing agreement. They can true up seats at the renewal anniversary as required. At renewal (after the beginning October 2019), customers must renew on the new Attach construct. They must have a qualified Base license for each user and assign the additional Attach licenses to their multiple application users as required. Its possible that someone will be able to use lower cost licenses.

Supply Chain Management, Finance, and Retail apps have a 20-user minimum purchase requirement. There is a difference between CE and CSA licensing in this respect..

There is no change in dual use rights. Dual use rights vary by application.

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