Microsoft’s current pricing plan for Dynamics 365 licences was promoted as the most cost effective way for users to access all capabilities across its Customer Engagement apps. However, the one size fits all model has proved to be under consumed in a majority of their customers as Microsoft have said most users are only working in one Dynamics app.
Microsoft are reacting by removing the existing Dynamics 365 Plan license to a new per app basis, or using the Team Member license. Confused? I wouldn’t blame you but we hope to be able to answer some immediate questions in this blog and our advice is to talk to your account manager for help and support.
What is changing and when?
Microsoft has announced that it will remove the Dynamics 365 Plan license with effect from 1 October 2019. For existing customers licensed with the Customer Engagement Plan you will need to move users to the new license type on your renewal date.
For existing Dynamics Customer Engagement customers you will likely have a mix of license choices consisting of;
- Team Member (for light usage needs)
- Functional role based apps (including Sales and Customer Service)
- The Customer Engagement Plan.
Based on the information that Microsoft has shared, from October 1st with the removal of the Plan license, users will be licensed on a per app basis, or using the Team Member license.
What is the new app licensing structure?
Upon Dynamics 365 renewal, an administrator would need to define a Base license from the following choice for each user that is currently licensed with the Customer Engagement plan:
- Dynamics 365 Sales Enterprise
- Dynamics 365 Sales Professional
- Dynamics 365 Customer Service Enterprise
- Dynamics 365 Customer Service Professional
- Dynamics 365 Field Service
- Dynamics 365 Project Service Automation
If individual user needs can be met by a single app, a Base app license alone may be sufficient. For example the sales licenses now include capabilities enabling users to create cases (previously this would require Sales + Customer Service) .Customer Service licenses now include capabilities allowing users to create leads (previously Customer Service + Sales would be needed).
With the UK commercial price for a Plan license @ £86.70 per user / month and an individual Enterprise app @ £71.60 per user / month a saving could be gained by moving from a Plan license if user needs can be met by a single app.
Same functionality in Base & Attached apps
There is no difference in the functionality of an individual app regardless of whether it is licensed as the Base or an Attached application. These are only differentiated in price.
When a user is equipped with a Base license for an Enterprise app and a single Attach license, Microsoft says the total cost will be identical to the current Plan price and initial UK pricing confirms this @ £15.10 per additional app / user /month.
As a result, an increase in user costs compared to Customer Engagement Plan licensing would only occur if users migrate from a Plan to a Base app with two, or more, Attach licenses.
For each user requirement, where two or more apps are required, an administrator will need to Attach the appropriate license(s), available at a , to set the required combination. You are able to mix and match the D365 Unified Operations apps with CE apps to meet each user requirement
Furthermore, points to cover;
- An Attach license may only be assigned to a user with a valid base license.
- The Base license must be the highest priced license, when a user has multiple apps.
- Project Service Automation app can only be purchased as a Base license.
- Marketing app is a tenant based license only, used as a Base license.
- Several Dynamics 365 add-on products will not be available as an Attach licence. These include: Sales Insights and Customer Insights
Help choosing your Pick & Mix?
IMPORTANT; the change is effective October 1st 2019, existing Dynamics 365 customers will not be impacted until the renewal of their agreement. At this point, it will only be possible to transact licenses on the new model as Customer Engagement Plan licenses will no longer be available.
Your Dynamics/CRM administrator will need to identify what Base licenses will be needed for each user and which Attach licenses, if any, would be needed for some, or all users.
Alithya are on hand to help customers navigate the process, understand and evaluate the new model. We are able to help you understand the different capabilities between Professional and Enterprise licenses, Team licenses as well as each Customer Engagement app license.
Contact your Alithya account manager for more advice.