Microsoft Dynamics 365 Licensing

Getting your head around Microsoft Dynamics 365 licensing types, pricing structure and licensing options can be an arduous task.

Each application has its own price per user and, depending on the size of your business, there are Business or Enterprise licence types available.

Our specialist Microsoft Dynamics 365 Consultants can quickly and easily calculate the licence costs for you and can recommend the most cost-effective licences for various staff, such as cheaper team member licences for light users, or full Customer Engagement plan licences for users that need access to all features in the platform. There are two editions of licensing for Microsoft Dynamics 365, Enterprise and Business.

 If you are considering implementing Microsoft Dynamics 365, below we have put together a comprehensive guide to how the licensing and pricing of Microsoft Dynamics 365 works.

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Microsoft Dynamics License Types

Much like other software licences, Microsoft Dynamics 365’s functionalities are broken down into individual apps and each covers a specific business process, for example Sales, Customer Service, Field Service, Project Service or Marketing. These apps can be a standalone app but at the same time can also work together within Microsoft  Dynamics 365 as one comprehensive and accessible solution for your business.

Microsoft Dynamics 365 licences for all the specific applications are available under two categories, Light & Full users. During the design process for your Microsoft Dynamics 365 implementation, our Microsoft Dynamics 365 Consultants will review all of your staff, their roles and their day to day tasks to ensure we maximise the use of cheaper licences where possible, designing and architecting the system to use the most efficient licence estate.

Licensing Table

Microsoft Dynamics 365 types of users

Light users, or Team Members, are intended to be secondary users of Microsoft Dynamics 365. Within the system they will only use some of the functionality available such as running or having some access to data reports, and performing light tasks within Microsoft Dynamics 365. Essentially, the Team Member or Light user license in Dynamics 365, can “read” data from all of the Dynamics 365 applications that you have. These are typically Senior Managers and front desk staff. Full users are users who require the use of feature rich business apps functionality and leverage most of the platform functionality to perform their roles within the business each day. Full user features include full read, edit and approval permissions across every application a user has access to via their plan. This would include productivity users that routinely set policies and guidelines.

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How much do Microsoft Dynamics 365 licenses cost?

For each of the main Microsoft Dynamics 365 applications, Sales, Customer Service, Field Service and Project Service Automation the license cost is £71.60 per user/per month for a full user license. (price correct 21/10/18).

For businesses that require more than one application, the customer engagement license at £86.70 per user/per month may work out as the best solution. There are other licensing options for businesses who require both CRM and ERP functionality, please get in touch to discuss with our Consultants your specific Microsoft Dynamics 365 licensing needs in more detail.

Are Microsoft Dynamics 365 licenses flexible?

We understand that your business has individual needs and no two businesses are the same, and our Microsoft Dynamics 365 Consultants will assist you in considering which Microsoft Dynamics 365 licenses you require now and in the future. This includes communicating with you when to upscale your licenses as your business grows, helping to review and manage your licenses during times of change. This will avoid you paying for licenses that are not required. Microsoft Dynamics 365 is compatible on PC and Apple operating systems and is accessed mainly through a web browser. Microsoft Dynamics 365 also has mobile and tablet applications with some offline access to data as well as a Microsoft Outlook add-in to improve productivity.

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Microsoft Dynamics 365 implementation

When working out the price for a Microsoft Dynamics 365 implementation, you’ll need to consider more than just the cost of the licensing. The following factors will have a significant impact on your calculations: Implementation costs, licence costs, internal time and effort and business change. The implementation costs for the project will cover activities such as designing and building the system as well as training and data migration. The size and complexity of your project will determine the amount of consultancy that is required for the implementation phase of the project, along with how much out of the box functionality you are using versus features that are bespoke to your business.

Managing an efficient Microsoft Dynamics 365 project

Another factor in determining a project budget is the methodology choice for the project. Waterfall projects require a large up front discovery and design exercise to be undertaken to provide a fixed price and fixed scope project, whereas agile projects have a lighter up front design exercise and then regular collaborative review throughout the project. The latter is a far more effective strategy for larger projects where requirements are almost guaranteed to change over the course of the implementation and give the business flexibility to drop and add requirements and maintain an accurate budget through the project lifecycle.

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Can you easily migrate from Microsoft Dynamics CRM to Dynamics 365 in the Cloud?

Migration of data from Microsoft Dynamics CRM to Dynamics 365 in the Cloud can be tricky, especially if you have an extensive amount of data that requires migration. The moving and migration of any data size and integration can be a complex topic as it is often more complicated than people realise. However, Infinity Group are specialists in implementing full migration to Dynamics 365 in the Cloud, each migration is bespoke depending on the existing setup. Please view our Microsoft Dynamics 365 migration case study which explains in detail how we did this for our client Active Silicon.

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Budgeting for a Dynamics 365 project

Budgeting for a Microsoft Dynamics 365 project of any size is imperative. The costing of a new business solution is a huge part of the implementation process but it is sometimes not the most straightforward. The first step of a well budgeted Dynamics 365 project is determining which functionalities of Microsoft Dynamics 365 suit your business the most.

Another consideration of setting a budget for your Microsoft Dynamics 365 project is that you will need to consider which existing systems you are replacing, which key staff members will be involved as well as how much data you need to migrate. A cost that people often forget to factor in to the project budget is that of the internal resources that are required to help design, test and implement the new system. Migrating core line of business applications is not simple and require dedicated time from staff to have input on the design of the new system and then to help with user acceptance testing to ensure the finished product is fit for purpose.

Keeping project costs down

Utilising out of the box features is a great way to keep project costs down, it might involve some changes to existing internal processes, but will greatly reduce the build and maintenance costs for your new solution, as well as provide easier access to new features as Microsoft release them. As an example, customers using out of the box Field Service capabilities can quickly and easily make use of Microsoft’s new Remote Assist functionality providing virtual reality support for remote engineers, with very little implementation effort as opposed to a business with a heavily customised Field Service solution.

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