Considering a Microsoft Dynamics 365 implementation? Understanding the cost is a top priority. Many factors influence the price tag, from the size of your business to the specific Dynamics 365 modules you choose. This blog explores how elements like business size, industry, customization needs, and deployment model selected impact the bottom line. We’ll also share practical tips on potentially reducing expenses without sacrificing functionality.
How much does it cost to implement Microsoft Dynamics? What are the components that decide the final cost?
Cost components of a Microsoft Dynamics 365 implementation
The total cost of a Dynamics 365 implementation encompasses several key areas. Beyond the software license itself, organizations must consider the investment required to:
- To get the business case approved
- To define key business outcomes
- To elicit business requirements
- To implement the solution
- To license the software
- To upgrade the solution to the latest version
- To support the ongoing maintenance of the software application.
Internal Costs – The Hidden Factor
While external costs like licensing and implementation fees are often at the forefront of budget planning, internal costs can significantly impact the overall project expenditure. Overlooking these hidden expenses can lead to budget overruns and project delays. Listed below are internal factors that intervene in the final cost.
- Resource requirements
- Disruption to the business
- A lack of seasoned professionals to conduct an activity if internal resources contribute to the project deliverables.
Microsoft Dynamics 365 has three license types to choose from:
a) Essentials: $70 per user per month
This license is designed for users who need basic access to Dynamics 365 functionalities. It includes core features, such as:
- Financial Management
- Supply Chain Management
- Customer Relationship Management
- Human Resources Management
- Project Management
- Warehouse Management
b) Premium: $100 per user per month
This license comprises of all the features of the Essential license plus additional advanced functionalities in:
- Service Management
- Supply chain management
- Manufacturing
c) Team Members: $8 per user per month
This license is open to the following:
- Read data
- Update existing data and entries
- Approve or reject tasks in all workflows assigned to a user
- Create, edit, or delete a quote
- Create, edit, and delete personal information
- Enter a timesheet for Jobs
- Use Power Apps/Power Automate Use Rights with Dynamics 365 license
Pricing of Dynamics 365 modules
| Dynamics 365 Finance |
$180 per month per user |
| Dynamics 365 Supply Chain Management |
$180 per month per user |
| Dynamics 365 Marketing |
· $750 per month per organization (A minimum of ten users)
· $1500 per month per organization (Less than ten users) |
| Sales Professional plan |
$65 per month per user |
| Sales Enterprise plan |
$95 per month per user |
| Microsoft Relationship Sales |
$162 per month per user |
| Customer Service Professional plan |
$50 per month per user |
| Customer Service Enterprise plan |
$95 per month per user |
These plans come with a 30-day free trial, and many paid features are unavailable during the trial period. Microsoft Dynamics 365 allows users to buy add-on apps to help organizations meet their business requirements.
Ways for cost reduction
- Use templates: Export templates from Microsoft Dynamics 365 and then export the data from source systems following the templates. Using available templates reduces data migration costs, reflecting the final price.
- Avoid customization: Customization might have to be left out. Adapt Dynamics 365 without any customizations for a much more cost-efficient implementation.
- Say no to minute automation: Try not to automate everything. Instead, automate critical functions.
- Consolidate technology platforms: There is a massive spike in implementation costs when businesses run on multiple Dynamics 365 instances. The pricing can be lowered further if all technology platforms can be consolidated.
LevelShift’s budget-friendly Dynamics 365 implementation
LevelShift is a Microsoft Certified Solutions Partner and has coordinated with numerous companies for Dynamics 365 implementation and migrations. The organization extends expert support to clients to benefit their businesses and goals.
LevelShift’s On-Demand Services are popular amongst clients as they serve their purpose in a pocket-friendly way. If you want answers to questions regarding the ODS model or Microsoft Dynamics 365 implementation, one of our experts can help you with a quick phone call.
