Some big changes are coming on March 1 for Microsoft Dynamics 365 users who want to add and remove licenses to a subscription — and you need to know about them. Dynamic Consultants Group (DCG), your trusted resource for all things Dynamics 365, cares about its clients and wants to ensure hard-working businesses do not overpay for Microsoft products and licenses. Read on to learn more about these price changes, how they will impact your business, and why you should work with a partner to get the most bang for your buck.
Here are the main changes:
- There will be three subscription lengths for Dynamics 365. You can pay every month, every year, or every three years.
- The one-year and three-year subscription lengths cost the same price, but you can benefit from any potential price increases with the three-year subscription.
- If you are paying monthly, Microsoft will now charge you 20 percent more than the one-year subscription price.
- You can add licenses during a one-year or three-year subscription term but can’t reduce the number of licenses.
- You will need to pay upfront for all three licenses, and Microsoft will not issue any refunds.
- These recent changes affect various Microsoft licenses, not just those for Dynamics 365.
Read more about these Microsoft licensing changes and how they can potentially impact your business below.
What’s Going On With Microsoft Licensing?
Microsoft’s new licensing rules have been changing for a while, but this recent announcement affects those who use the company’s “seat-based products.” These are products where Microsoft charges a subscription ”per seat” to a user for services in the cloud. Dynamics 365 is one of these, so the changes that go live on March 1 will most likely affect you. It’s all part of something called the Microsoft New Commerce Experience (NCE), which transforms how people pay for Microsoft licenses.
What’s the reason for these changes? First, Microsoft wanted to simplify its licensing requirements for customers, so a single Microsoft Customer Agreement will now govern all products that fall under NCE. (Previously, Microsoft product lines had different agreements and offers, which became confusing.)
How Will the NCE Impact You?
The NCE has three buying options:
- Breadth Motion
- Enterprise Motion
- Self-Service Motion
The Breadth Motion option is the most popular for small and medium-sized companies. It enables partners in the Cloud Solution Provider program to manage a seat-based product like Microsoft Dynamics 365 on behalf of Microsoft. These partners take care of everything from service delivery to contracting and provide value-added services that make implementing and managing Microsoft products much more manageable. Enterprise Motion is similar to Breadth but caters to larger companies, while Self-Service Motion serves organizations with specific technological needs, thus allowing for more flexibility.
Learn more: Evaluate & Accelerate
Will You Save or Lose Money?
This is an important question. While Microsoft’s licensing changes might seem like a way to get more money from customers, you could save cash overall. While the one-year and three-year subscription lengths for Dynamics 365 cost the same, you get price protection with the three-year option. That means you’ll pay the same amount for the product if it increases in price over the next 36 months. (Microsoft 365 will increase, on average, 15 percent on March 1, depending on the SKU, so Dynamics 365 could do the same.)
On the other hand, you will need to pay a 20 percent premium if you take out the monthly subscription, which will increase costs for Dynamics 365. However, you can reduce the number of licenses you need to reduce costs, which is not available with the one-year and three-year subscriptions.
If you want more flexibility, opt for the new monthly subscription come March 1, but expect to pay a premium for that flexibility. On the other hand, if you want more significant savings, lock yourself into the three-year subscription and protect your organization from any potential price increases over the next 36 months.
Why You Need a Dynamics 365 Partner
While there are potential savings to be made with Microsoft’s NCE, these recent changes can be challenging to navigate. That’s why you need a reputable Dynamics 365 partner who can help you choose the best licensing offers for your organization.
Dynamic Consultants Group (DCG) is your trusted resource for all things Dynamics 365 and can help you find the suitable Microsoft licensing model based on your budget and requirements. We understand Microsoft Licensing has become complex, and if not carefully watched, needlessly expensive. We want to help you get optimized value at a minimum cost for every Microsoft purchase and renewal. To help navigate these changes we are offering a free Microsoft Licensing Advisory to any companies interested. We work with you to understand your specific licensing requirements and build a plan to get the most out of your current spending while developing a structure that fits the growing needs of your business. Our experience with Microsoft Licensing allows us to offer these services during the Microsoft Licensing Advisory:
- Define a negotiation strategy, and help you align your buying team with Microsoft awareness
- Identify and simplify the best-fit options for licensing that meets your technical requirements
- Cost-model the options and guide you through selecting the most desired outcomes
- Provide tactics for negotiating Microsoft agreements with best-in-class rates
Things are changing for Dynamics 365 licenses on March 1. Now, there will be a simplified system of three subscriptions lengths, with a 20 percent premium levied on monthly subscriptions. However, you’ll get protection from any price increases if you opt for the three-year subscription. Dynamic Consultants Group wants to help make this transition as seamless as possible for your business. Get a Free Microsoft Licensing Advisory today!