Changes to Microsoft Dynamics 365 Licensing in October 2019.

New changes are coming to the way Dynamics 365 is licensed in October 2019, as Microsoft move away from the current approach to a new model. Read on to find out what these changes are and who they will affect…  

What are the changes?

As of October 1st 2019, the current multi-application approach to licensing will change to a new ‘Base and Attach’ approach, allowing businesses to only purchase the apps you need. This means the Customer Engagement Plan, Unified Operations Plan, and Dynamics 365 Plans will be retired. 

Customers will first purchase a Base License for each Dynamics 365 user within their business, then add one or more Attach License to each Base; The Base License will come in at full cost but the additional licenses on top will be cheaper. 

These changes give more freedom to businesses and allow them to only purchase the applications they need for users, based on their responsibilities. 

New licensing model for dynamics 365

Who will they impact?

These changes to the licensing model will affect any business with a Dynamics 365 Subscription currently, or ones planning to transact licenses in the future. The cost impact will be dependent on how many licenses your business requires, which may result in a price reduction, or increase. 

Do I need to do anything if I am a Dynamics 365 customer?

If you are a current customer, Microsoft commit to your current price plan for a minimum of 1 year. As an example, if you have existing licenses purchased in August 2019, you will not be moved across to any new licenses until September 2020.  This can be done directly through Microsoft, however we always advise engaging with a Microsoft Dynamics partner, who are likely to have a deeper understanding of what is the most costeffective price plan for your business, in line with the current rules Microsoft set. 

If you would like more information on the new licensing plans or have any queries relating to Microsoft Dynamics 365, please feel free to get in touch with a member of our team. 

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