Microsoft announces new Pricing for Dynamics 365 Customer Engagement & Unified Operations, applicable from 1st October 2019
Two weeks before Inspire, Microsoft announced that all Dynamics 365 Plan subscriptions for Customer Engagement and Unified Operations will disappear from the price list as per 1st of October. In order to prepare you as quickly and effectively as possible, we would like to explain to you the changes to the new licensing model and the impact that this will have to you and your customers.
Impact: New customers for Customer Engagement and Unified Operations from 1st October
New customers can no longer order the current Dynamics 365 (CE and UO) Plan licenses from this date. The new “Base and Attach Licenses” model will apply from 1st October. Microsoft also calls the model “á la carte”.
In this new model, payment is based on usage per user per module. Every user always starts with a Base License. In addition, 1 or more additional modules can be added per user as an Attach License.
Almost all application licenses are available as a Base License and as an Attach License. Only Dynamics 365 for Marketing (licensed per tenant), Dynamics 365 for Project Service Automation and Talent are not available as an Attach License. For those modules, a user will therefore have to pay for a second Base License.
To make it concrete: A user who needs access to all Customer Engagement modules orders Dynamics 365 Project Service Automation as a Base License in this new model and adds the Sales Enterprise Edition, Customer Service Enterprise Edition and Field Service modules as Attach License to this. The total price for the user, in this case, is $ 155, consisting of the costs for the Base License $ 95, plus the 3 Attach Licenses of $ 20 each. The advantage for end customers: they only pay for the modules they use at that time. The price of 2 modules is the same as the current Customer Engagement Plan price.
In the current Unified Operations plan it is currently possible to order some modules such as Dynamics 365 for Talent or Retail as a stand-alone solution. Finance and Operations, however, has always been seen as a single module and since the introduction of the Unified Operations Plan module, that functionality could only be ordered through this composite plan. This will change after 1st October 2019.
As per October 2019 Finance and Supply Chain can be purchased as separate modules. The minimum requirement of 20 users remains applicable for both applications. Furthermore, all Dynamics 365 Customer Engagement modules can be added as an Attach License for the price of $ 20. Of course, again with the exception of Project Service Automation and Marketing, for which you always pay for a Base License.
Impact: Existing customers Customer Engagement and Unified Operations from October 1st
This change also has an impact on the current subscriptions of your existing customers, but not necessarily from October 2019.
The changes for existing customers only take effect on the subscription renewal date.
For example, if you ordered the licenses (with a standard duration of 12 months) on 1st November 2018, you must convert the licenses to this new model with Base Licenses and Attach Licenses before 1st November 2019.
We are still investigating whether this also has other (technical) implications in addition to an administrative act. We will certainly come back to that when we know more.
It is of vital importance that you approach your customers in reasonable time to inform them and discuss these changes. For subscriptions with a duration of 36 months you of course have some time left. You could consider ordering a new subscription for an existing customer with a term of 36 months and turning off the old subscriptions, if this would result in a more favourable price for a customer.
The transition SKUs from CRM Online to Dynamics 365 Customer Engagement plan, which according to communication from the transition paper on PartnerSource will remain available until October 31, 2019, is also unclear whether the latest order date will change. We are waiting for confirmation on this and will update you shortly.
As QBS group, we will keep you informed of all developments around the Dynamics 365 Licensing structure. For questions, please contact us via the Partner Portal. For additional details, you can also go to the Dynamics 365 licensing page in PartnerSource.
Source: FAQ new licensing structure Dynamics 365