Dynamics 365 Licensing Changes (Fall 2019)

With the 2019 Fall releases and expiration of licensing discount programs, effectively October 2019 Microsoft introduces a series of major changes to the Dynamics 365 licensing program.

Moving forward, Dynamics 365 licensing will evolve from multiple application plans for Customer Engagement (CE), Unified Operations (UO) and the arching Dynamics 365 Plan into licensing of individual applications. This enables customers to purchase applications aligned with individual user need, and reduce frustration from paying for services not needed.

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Key change summery by October 2019

  • Customer Engagement Plan, Unified Operations Plan, and Dynamics 365 Plans will be retired.
  • Finance and Operations will be split into two individual applications: Supply Chain Management and Finance.
  • Sales, Customer Service, Field Service, Project Service, Marketing, Retail, and Talent will continue to be offered as standalone applications.
  • Release of new Qualified ‘From SA’ transition offers.
  • New and renewing customers will be able to purchase individual applications as Base and Attach licenses.
  • Each Dynamics 365 application will be extensible and can be easily mixed-and-matched with other Dynamics 365 applications to configure unified solutions that align to distinct business requirements.

Base/Attach licensing

The Base license is the first application purchased for an individual user within a customer’s organization. The Attach licenses are additional applications that may be purchased after the Base license is acquired. Base and Attach licenses provide access to the same application functionality.

Customers first purchase a Base license for each Dynamics 365 user within their organization. Then, they may add one or more Attach licenses to each Base license.
Prices are Per User Per Month (PUPM), except for Marketing which is Per Tenant Per Month. All pricing are subject to change, please consult price list for updated pricing.

Unified Operations Base/Attach SKUs:

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Customer Engagement Base/Attach SKUs:

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Important:
Unified Operations Attach SKUs MAY NOT be added to a Customer Engagement base license as Unified Operations SKUs are the higher priced SKUs and must always be the Base license.

If for example a customer has an individual user that requires both Sales and Customer Service Enterprise application functionality, they may purchase the Sales Enterprise Base license for $95 and then add the Customer Service Enterprise Attach license for $20. Their total PUPM rate for this user is $115.

If the customer would like to purchase both a Base and an Attach license for a user, they must purchase the higher priced of the two Business Application licenses as the Base license. The Attach licenses can only be assigned to users with pre-requisite Base license.

For example, if the customer would like to purchase a Retail license and a Customer Service license for a user, they must purchase the Retail license as the Base license ($180) and the Customer Service license as the Attach license ($20) for that user,for a total of $200 PUPM.

Dynamics 365 Base - Attach Scenarios 2019 October

Finance and Operations broken into standalone applications

Another major change is that from October 2019, Finance and Operations will be split into two standalone applications, Supply Chain Management and Finance, which enables customer to purchase the Unified Operations workloads separately. With this change the Dynamics 365 Unified Operations portfolio now consist of 4 applications: the new Supply Chain Management and Finance, and the existing Retail and Talent applications.

The background for breaking out Finance and Supply Chain Management was based on a number of factors; customer scenarios and use cases, as well as market data in terms of what competitors are doing.

D365UO Licensing Changes 2019 October

October 2019 Dynamics 365 SKU overview:

Dynamics 365 SKU Placemat 2019 October

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