New pricing for Microsoft Dynamics 365 effective October 2024

Microsoft Dynamics 365 Pricing Update: What You Need to Know

Microsoft is set to introduce a significant update to its Microsoft Dynamics 365 pricing structure on October 1, 2024. This price increase, impacting both Software as a Service (SaaS) and on-premises solutions, marks the first adjustment in over five years.

Understanding these changes is crucial for organizations utilizing Microsoft’s suite of business applications for effective budgeting and strategic planning. This blog delves into the specifics of the upcoming Dynamics 365 price adjustments, the reasons behind these changes, and strategies to manage the new Dynamics 365 license costs effectively.

Understanding the Dynamics 365 Price Increase

The upcoming price changes will affect a variety of Dynamics 365 products, with both monthly and annual subscriptions being impacted. Notably, Dynamics 365 Business Central will maintain its current pricing, while other products will see adjustments. Here’s a breakdown of the new pricing for key Dynamics 365 products:

• Microsoft Dynamics 365 Sales Enterprise: From $95 to $105 per license.
• Microsoft Dynamics 365 Customer Service Enterprise: From $95 to $105 per license.
• Microsoft Dynamics 365 Field Service: From $95 to $105 per license.
• Microsoft Dynamics 365 Finance: From $180 to $210 per license.
• Microsoft Dynamics 365 Supply Chain Management: From $180 to $210 per license.
• Microsoft Dynamics 365 Human Resources: From $120 to $135 per license.
• Microsoft Dynamics 365 Project Operations: From $120 to $132 per license.

Existing customers will continue to pay their current rates until their next renewal date after October 1, 2024. Charitable and non-profit licenses will also see increases aligned with commercial rates.

The Rationale Behind the Dynamics 365 Cost Increase

Microsoft’s decision to raise Dynamics 365 license costs is driven by substantial investments in the platform over the past five years. These enhancements include:

• Artificial Intelligence Integration: AI-driven capabilities are now embedded across Dynamics 365 applications. For instance, Dynamics 365 Sales leverages AI to provide predictive insights, enabling sales teams to identify leads and personalize customer interactions more effectively.
• Unified Interface: A consistent, unified interface across all Dynamics 365 apps enhances user experience and productivity by ensuring that regardless of the application used, users encounter a coherent and intuitive interface.
• Enhanced Data Security and Compliance Tools: With increasing concerns over data security, Microsoft has significantly upgraded the security and compliance features of Dynamics 365, including advanced data loss prevention, improved compliance protocols, and robust encryption features, providing businesses with better protection for their sensitive information.

Strategies to Manage Dynamics 365 Licensing Costs

While the price increase may impact your budget, there are several strategies you can employ to manage and potentially reduce your Dynamics 365 license costs. Here are some practical tips:

• Reduce Shelfware: Conduct a thorough audit of your current Dynamics 365 licensing to identify and eliminate unassigned or unused licenses. This approach ensures that you only pay for licenses you actively use, thereby reducing unnecessary expenses.
• Plan Ahead: Evaluate your licensing commitment terms and consider purchasing additional licenses before the price increase takes effect. Acquiring even a single extra license before October 1, 2024, can lock in the current pricing for the duration of your commitment term, helping to manage Dynamics 365 costs more effectively.
• Research Your Licensing Options: Dynamics 365 licensing can be complex. Understanding the base/attach model and ensuring that users do not hold redundant base licenses can help optimize your Dynamics 365 licensing and reduce overall costs.
• Align Your New Commerce Experience Dates: Synchronize your licensing dates to simplify budgeting and planning. By aligning these dates, you can better manage your budget and make necessary adjustments on an annual basis.
• Save on Non-Dynamics 365 Licensing: Extend your review to other Microsoft products, such as Microsoft 365 and Azure. Analyzing your entire Microsoft licensing portfolio can uncover additional savings and optimize overall costs.

How Techcronus Can Assist with Dynamics 365 Licensing

Navigating Microsoft Dynamics 365 licensing can be complex, but Techcronus is here to simplify the process and help you maximize your investment. Here’s how:

• Optimize License Usage: Techcronus will perform a detailed audit of your current Dynamics 365 licenses to identify any unused or redundant licenses. By removing these, you ensure that you’re not paying for licenses you don’t need, helping to reduce unnecessary costs.
• Utilize Promotions: As a certified Microsoft partner, Techcronus is well-versed in available promotions, such as the Bridge to the Cloud 2 offer. They can guide you through leveraging these deals to secure lower rates before any upcoming price increases, ensuring you get the best value.
• Plan for Future Costs: Techcronus will assist you in understanding your licensing commitment terms and planning purchases strategically. This proactive approach helps you acquire necessary licenses before any price hikes, securing current rates and managing future costs more effectively.
• Clarify Licensing Options: Techcronus provides clear insights into your licensing choices, including the base/attach model. This clarity allows you to make informed decisions about which licenses are best suited to your needs, ensuring you choose the most cost-effective options.
• Streamline Management: Techcronus helps align your licensing renewal dates and consolidates your licensing with their services. This streamlines budgeting and planning and uncovers additional savings across all your Microsoft licenses, including Microsoft 365 and Azure.

Preparing for the Dynamics 365 Pricing Update

The upcoming Dynamics 365 pricing update reflects Microsoft’s ongoing commitment to enhancing its suite of solutions. While the increase in Dynamics 365 costs may impact your budget, the platform’s innovations and improvements offer substantial value.

By employing strategies such as reducing shelfware, leveraging promotions, planning, and working with a trusted partner like Techcronus, you can effectively navigate these changes and optimize your licensing investments.