When considering an upgrade to Dynamics 365, it is important to get a complete overview of the associated costs. An implementation involves many types of costs besides simply the licensing. This blog will explain how you can purchase Dynamics 365, what types of licenses there are, and what components there are to the costs.
How to buy Dynamics 365
Most business purchase Dynamics 365 through a Microsoft partner who serves as a reseller of Microsoft’s products. You cannot purchase D365 from Microsoft directly because you need experts to implement the solution for you. Kaya is such a partner: we can guide the implementation process from start to finish. Throughout the process, we make use of best practices and proven project planning methods.
Another option is to purchase D365 through volume licensing, which may be applicable for you if you have a large business. This option is available for commercial organizations with 500 (+) users/devices. Volume licensing is possible through Microsoft’s Enterprise Agreement. This entails that the solution is licensed for a minimum of three years. Licenses in the form of Enterprise Agreements can only be sold by special Microsoft partners called licensing solution providers (LSPs).
Types of licenses
Different licensing types are available for the D365 solutions. Broadly, there are assigned licenses and unassigned licenses. The former assign access to individual users or devices, whereas the latter provide organization-wide access regardless of the user or device. Within these two broad dimensions, there are more specific licensing options available. For instance, there are licensing options available for different types of users who require varying levels of system functionality. You can read more about these options in Microsoft’s Dynamics 365 Licensing Guide. In any case, the general licensing types are determined per D365 solution. For example, D365 Finance and D365 Supply Chain Management make use of assigned licensing on a per-user basis.
Cost components
When you obtain D365 through a reseller such as Kaya, you pay a monthly fee for your subscriptions. If users in your organization require the functionalities of multiple D365 products, you can make use of Microsoft’s “base and attach’’ licensing model. Every user must have a base license which is sold for the standard price. For a reduced price, they can then also be assigned so-called attach licenses that are associated with the base license. For instance, you can buy an attach license for D365 SCM for a user with a Finance base license.
Besides these costs for your D365 licenses, you should also think about other costs you may incur with the implementation. For instance, if you want to purchase extra software from an ISV to supplement your D365 solution, this will cost you an extra subscription fee. Another example are the costs you may have to invest in training your employees to work with the new solution.
To conclude…
There are many costs and licensing options to consider when thinking about an upgrade to D365. This may seem daunting, but it is important to remember that the upgrade will provide you with a system that is far more efficient and dynamic than any legacy system out there. For many reasons, sticking to your legacy system is actually more costly than upgrading (as you can read in this blog). Still, you should have a proper overview of the costs and benefits of an upgrade before making any decision. Kaya is the right partner to help you with this. We are committed to helping businesses make well-informed decisions through transparent consulting practices. If you would like to receive more information and further assess the consequences of an upgrade for your business, please contact us.