Key takeaways

• Dynamics 365 licensing can be complex, with options for Business, Enterprise and add-on plans that vary by features and user needs
• Choosing the right license depends on factors like organisation size, compliance requirements and desired functionality such as AI or advanced analytics
• Understanding these tiers helps avoid overspending and ensures your business gets the tools it needs for productivity and growth

Dynamics 365 is a powerful platform, with capability to support your business across core areas. However, when it comes to Dynamics licenses, there is a lot of information out there to sieve through.

The good news is that Microsoft’s licensing options are incredibly flexible. You only need to pay for the features your business actually uses. It’s therefore easy to scale your platform as your business grows, as well as manage your budget.

We’ve put together a Dynamics 365 licencing guide to tell you exactly how it works and how much it costs.

What is Dynamics 365?

Dynamics 365 comprises a series of applications, each tailored to drive productivity in core business areas.

Here are the different Dynamics 365 apps:

• Sales: Enhance sales effectiveness, deepen customer relationships and close more deals with AI assistance.
• Customer Service: Provide exceptional customer service by accessing multi-channel customer messages on a uniformed platform.
• Field Service: Optimise field operations, improve customer service and enhance profitability.
• Business Central: Gain a day-to-day view of your business, designed around the needs of your workers.
• Customer Insights: Utilise data-driven insights to enhance customer engagement and decision-making.
• Finance: Manage financial processes efficiently, improve supply chain efficiency and increase finance team productivity.
• Commerce: Customise online Commerce pages using various modules.
• Supply Chain Management: Streamline end-to-end supply chain processes to enhance operational efficiency and agility.
• Human Resources: Manage HR operations, including leave management, compensation tracking, certifications, training and compliance programs.

Depending on the needs of your business, you may want a collection of different apps under the Dynamics 365 umbrella. As every module interacts with one another, this allows you to create a bespoke platform, designed for your needs.

How is Dynamics 365 licensed?

There are a few things to note before you get a Dynamics 365 licence.

Firstly, you can’t get one from Microsoft directly. Instead, you need to get your licence from a designated Dynamics 365 partner. We’ll touch on this more soon.

Secondly, different modules have different prices, so the cost of your licence may vary from other businesses. If you are implementing multiple applications, you may be able to get a reduced price.

Now, let’s explore how Dynamics 365 is licensed.

The primary licensing method is by named user subscription. This is where you get licences to cover the various people within your business using the app. This may include:

• Full users: These are users whose work requires the use of the feature-rich business app’s functionality. They have access to all the capabilities within the app. Common examples of these users include Sales Professionals, Customer Service Professionals, Field Service and Finance.
• Light users: These users have more limited needs and access. They can perform specific tasks within the app. Examples include users that just need to view data or enter timesheets.

Besides the named user subscription licensing method, there is also device licensing. This method allows multiple users to share a single device licence. It’s suitable for scenarios where several users use the same device intermittently. However, it’s essential to note that device licensing is available only for specific Dynamics 365 apps, so check it applies to the ones you need.

The licensing option you choose will depend on your usage needs as a business, including how many people need access and to what extent. You can also mix-and-match licenses based on your users, which can enable you to manage costs.

As licensing needs can be complicated to figure out, we recommend discussing your goals with your chosen Dynamics 365 partner. They will be able to guide you through the options and get a package that supports your long-term use of the apps.

How much does a Dynamics 365 license cost?

The cost of Microsoft Dynamics 365 licences varies based on the specific app and user type. Below, we’ve listed some pricing details for different business areas.

Every app within Dynamics 365 will have a range of licences available, with different levels offering different features.
Again, it is worth checking with your Dynamics 365 partner to understand which licence type is best for you and how the options differ.

It is worth noting that some apps are licenced per tenant rather than per user. This means the subscription will cover all users under that tenant.

While the above prices are accurate currently, Microsoft have announced some of these prices will increase from October 2024. You can find details about the upcoming price increases here.

How do I find a Dynamics 365 partner?

As we’ve already mentioned, you need to obtain Dynamics 365 from a certified partner.

By working with a Dynamics 365 partner, you’ll gain numerous benefits too. They can help you to evaluate new solutions and find those that best fit your needs. They can also tailor apps so they meet specific requirements and nuances in your business. Plus, they can provide ongoing support and recommendations to get you continuous value from Dynamics 365.

Many partners offer prepackaged services for solution assessment, architecture planning, implementation and training, which can help you get started with your Dynamics 365 solution smoothly and swiftly.

To find a Dynamics 365 partner, start by visiting the Dynamics 365 Partner page. Here, you can find partners who serve your location, ranked by proximity, responsiveness and other factors.

It’s worth having an initial call with any potential partner so you can determine if they’re a good fit for your needs.

Choose the right module to start with_

Understanding Dynamics 365 licensing is important, but before you decide which licences you need, you need to know which applications will deliver the most value to your organisation.

Dynamics 365 is made up of a range of applications designed to solve different business challenges, from finance and operations to sales, customer service, project delivery and customer engagement. Some organisations start with a single application, while others unlock greater value by combining multiple solutions as their needs evolve.

That’s why it’s important to look beyond licensing and focus on fit. Which challenges are you trying to solve? Which teams need support? And which combination of applications will help you achieve your goals both now and in the future?

Download our Dynamics 365: Choose Your Fighter guide to explore every Dynamics 365 application, the business problems it solves and the powerful combinations that can help you get more from your Dynamics 365 investment.