CRM Solutions, Microsoft Dynamics 365

Microsoft Dynamics 365 Licensing: Choose the Right Plan for Your Business

Microsoft Dynamics 365 is an intelligent business applications in the cloud and it is designed to help businesses accelerate digital transformation.

As businesses continue to adopt new technologies to remain competitive, many companies are choosing to achieve their goals by subscribing to cloud-based subscription services (SaaS) to stay relevant.

But, there is a misconception that having a CRM is viable only for enterprise business and it is not very effective for medium and small companies. That’s not true. If you look at the larger picture, it all comes down to choosing the right licensing options based on the business need. Remember, one of the most important decisions you make at the early stage of your business is choosing the right licensing options for your teams. Make sure you get them right.

You may ask why?

Do you know that unused licenses create up to 38% of technology waste for companies that don’t have visibility into their software?

In this blog, we will explore the different types of Microsoft Dynamics 365 licensing options and how you can choose the right licensing plan for your business.

Microsoft Dynamics 365

Microsoft Dynamics 365 is the next generation of intelligent business applications in the cloud and the applications are designed to help businesses accelerate digital transformation to meet the changing needs of customers.

Understanding Dynamics 365 – Dynamics CRM + Dynamics AX

Microsoft Dynamics 365 is a combination of Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP). Earlier, these were called Dynamics CRM and Dynamics AX.

A break-down of Dynamics 365 is divided into two sections.

Customer Engagement
Unified Operations

Customer Engagement includes applications such as: Sales, Marketing, Customer Service, Field Service and Project Service Automation.

Unified Operations includes applications such as: Retail, Talent, Finance & Operations which fall under ERP functions.

License Type	Product	Price (per user/month)
Full Users	Sales Professional	$65
	Sales Enterprise	$95
	Sales Premium	$135
	Microsoft Relationship Sales	$162
	Customer Service Professional	$50
	Customer Service Enterprise	$95
	Field Service	$95
	Project Operations	$120
Light Users	Team Members	$8
Device Licenses	Device Licenses	Varies based on application
Tenant-Based Licenses	Customer Insights	$1,700 per tenant/month
	Customer Insights Attach	$1,000 per tenant/month
	Customer Voice	Included with select products
		Additional responses: $100 for 1,000 responses/month
	Dynamics 365 Customer Insights	$1,500
	Marketing Attach	$750
Licensing Models	Base and Attach Licenses	Reduced cost for additional apps
	Volume Licensing	Available through EA, EAS, SCE
	Cloud Solution Provider (CSP)	Partner-sold solutions
	Web Direct	Direct purchase from Microsoft

Types of subscriptions and product licenses in Dynamics 365

One of the advantages of Dynamics 365 is the wide variety of options available for businesses of all sizes. The bundled plans become a cost-effective option if you are looking at leveraging the functionalities of the sales and service.

Dynamics 365 Plan

This is a bundled plan that offers both the CRM and ERP functionalities. In addition to Customer Engagement and Unified Operations, it also comes with Power Apps.

Dynamics 365 Plan

Unified Operations | Customer Engagement

Dynamics 365 Customer Engagement Plan

The Customer engagement plan is packed with functionalities that can boost your sales and service campaign. To fulfil your marketing needs, Dynamics 365 Customer Engagement plan is what you need. As an add-on, there’s power apps and Marketing App included in the plan. But the functionalities of the marketing app can be utilized only if your organization have more than 10 users.

Here’s a run-down of the Dynamics 365 Customer Engagement Plan

Customer Engagement Plan

Sales | Power Apps | Marketing App

Marketing

Customer Service

Field Service

Project Service Automation

If you are a business with limited capabilities and wish to opt for a portion of the Customer Engagement Plan, you are allowed the license to benefit from modules like Sales which are available independently.

Dynamics 365 Unified Operations Plan

If you are a business on the finance and operational front, Dynamics 365 Unified Operations Plan is the right fit for you. It has all the capabilities your business requires to stay ahead of the competition. You can opt for additional devices at a price along with the plan.

Here’s a run-down of Dynamics 365 Unified Operations Plan

Finance & Operations | Power Apps

Retail

Talent

Having covered all the three plans of Dynamics 365, let us quickly move on to the licensing options. It is one of the most important things for a business to consider before choosing their licensing options.

What are user licenses?

User licenses in Dynamics 365 refers to a license dedicated to a particular user. Each user should have a unique user license to access Dynamics 365. As the user licenses are dedicated licenses, they cannot be shared. If your business has limited device licenses and more user licenses, you are efficiently cutting down on costs as your team is able to access Dynamics 365 on any licensed device to get their work done.

User Subscription Licenses (USL)

Full Users: These users require full access to the features and functionalities of Dynamics 365 applications. Examples include salespeople, customer service representatives, and finance employees.

Sales Professional: $65 per user/month.
Sales Enterprise: $95 per user/month.
Sales Premium: $135 per user/month.
Microsoft Relationship Sales: $162 per user/month.
Customer Service Professional: $50 per user/month.
Customer Service Enterprise: $95 per user/month.
Field Service: $95 per user/month.
Project Operations: $120 per user/month.

Under User Licenses, there are two more options available at your disposal.

Light Users: These users need limited access to the system, such as viewing data or running reports. They are often referred to as “Team Members.”

Team Members: $8 per user/month.

Full User | App License and Plan License

Light user license is for members who are tagged to more than one job/responsibility. The functionality of the light user is to provide basic read and write access for lighter tasks across Dynamics 365 applications. For a light user, there’s no restriction on the Customer Engagement Plan or Unified Operations Plan, but to configure one or more light users, there should be one full user assigned to the plan to administer the service.

Full user license is for your sales head and finance functional heads who needs to have a future rich access to Dynamics 365 applications.

Device Subscription Licenses (DSL)

Device Licenses: These are for shared devices used by multiple users, such as in a retail environment. Pricing varies based on the specific application and usage scenario.

Tenant-Based Subscription Licenses

Customer Insights: $1,700 per tenant/month.
Customer Insights Attach: $1,000 per tenant/month (for organizations with a qualifying Dynamics 365 application).
Customer Voice: Included with select Dynamics 365 enterprise products (2,000 responses free per month). Additional responses can be purchased at $100 for 1,000 responses per month.
Dynamics 365 Customer Insights: $1,500 per user/month.
Marketing Attach: $750 per user/month.

Licensing Models

Base and Attach Licenses: This model allows users to purchase a base license for their primary application and attach licenses for additional applications at a reduced cost.
Volume Licensing: Available through programs like Enterprise Agreement (EA), Enterprise Agreement Subscription (EAS), and Server and Cloud Enrollment (SCE).
Cloud Solution Provider (CSP): Allows partners to sell Microsoft cloud solutions along with their own offerings and services.
Web Direct: Direct purchase from the Microsoft website.

Choose the right licensing plan for your business

When it comes to choosing the right licensing plan for your business, there’s no one-size-fits-all solution as Dynamics 365 is offering solutions your business may need at any given stage. It allows you to choose from a host of plans including Customer Engagement Plan, Unified Operations Plan or the combined Dynamics 365 plan to meet the changing needs and to accelerate your business growth.