New Dynamics 365 Pricing | October 2024 Update

Microsoft has rolled out a major Dynamics pricing update after five years that will applicable across various applications from October 1, 2024. In these years, Microsoft has brought various innovations to the Microsoft Dynamics 365 solution, like in-built AI (Copilot) and a consistent user interface.

The new pricing increase is ranging from 10% to 17%, depending on the product. If you are a Microsoft Dynamics 365 user, this blog will help you navigate through the pricing change, how to optimize the pricing and licensing update.

Why Microsoft Has Increased the License Cost?

To justify the Dynamics 365 pricing update 2024, Microsoft has presented various reasons. The most important factors include:

Continuous Innovation

In the past five years, Microsoft has rolled out various features. Copilot, an in-built AI and the first intelligent assistant for the workforce, is at the top of all the innovation. It has been in-built across all the applications to help businesses automate repetitive tasks and boost productivity. AI integration across the applications is one of the main reasons for the price increase.

Enhanced Value Offering

Business is relying on digital solutions to manage customer relationships, optimize operations, and drive growth. Microsoft has added various functionality according to relevant business requirements. For instance, users can experience a consistent interface across all D365 applications for a unified experience.

Global Parity and Regulatory Compliance

Microsoft is aligning its pricing globally to ensure fairness across all regions. This is particularly relevant as exchange rates fluctuate and regulatory demands change. The pricing change also brings U.S. government pricing in line with commercial pricing over time, ensuring consistency across customer segments.

Improved Security

Rising data security concern is the biggest problem for businesses. To resolve this concern, Microsoft has heavily invested in their technology to upgrade the security and compliance features to prevent data loss, offer encryption features, and increase compliance protocol.

Affected Applications After the D365 Pricing Update

The October 2024 price changes will impact several key Dynamics 365 products, including both Microsoft ERP and CRM. Below is a detailed list of some of the key products affected by the price increase:

• Microsoft Dynamics 365 Sales Enterprise: CAD $128.90 to CAD $142.50 per user per month (11% increase).
• Microsoft Dynamics 365 Customer Service Enterprise: CAD $128.90 to CAD $142.50 per user per month (11% increase).
• Microsoft Dynamics 365 Field Service: CAD $128.90 to CAD $142.50 per user per month (11% increase).
• Microsoft Dynamics 365 Finance: CAD $244.20 to CAD $284.90 per user per month (17% increase).
• Microsoft Dynamics 365 Supply Chain Management: CAD $244.20 to CAD $284.90 per user per month (17% increase).
• Microsoft Dynamics 365 Commerce: CAD $244.20 to CAD $284.90 per user per month (17% increase).
• Microsoft Dynamics 365 Human Resources: CAD $162.80 to CAD $183.20 per user per month (13% increase).
• Microsoft Dynamics 365 Project Operations: CAD $162.80 to CAD $183.20 per user per month (13% increase).

*Note: Microsoft Dynamics 365 Business Central and Customer Insight will remain unaffected by the price increase to provide cost-effective solutions for businesses of all sizes.

You can take a look at the below table to know more about the pricing change about all the licenses.

Best Way to Manage Your Licensing Cost

The upcoming pricing & licensing update may seem overwhelming at once. You might be evaluating the new pricing cost to align with your budget. Here are several strategies that you can incorporate to optimize your licensing cost.

Conduct a License Audit: Ensure you're only paying for what you need. Conduct an internal audit to identify unused licenses and eliminate those that are no longer necessary.

Utilize the Base/Attach Model: Microsoft offers a base and attach licensing model that allows businesses to purchase a primary application and attach additional apps at a lower cost. This can significantly reduce overall costs for businesses that require multiple Dynamics 365 applications.

Leverage Team Member Licenses: For employees who only require limited access to certain features, Team Member licenses offer a more affordable option. This can save money for users who don’t need full access.

Take Advantage of Promotions: Keep an eye out for promotions or bundle deals that Microsoft or its partners, like Dynamics Square offers around the time of the pricing update.

How Can Dynamics Square Help You with the Pricing Change?

Dynamics Square is a Microsoft Solutions Partner and has 14+ years of experience in offering D365 solutions. We have a team of 135+ expert consultants and 500+ other team members that keep an eye on Microsoft updates.

Our experts will perform a thorough audit of your existing licenses to identify any cost-saving opportunities and help you leverage the latest promotions and bundle deals. We also offer guidance that assists you with the licensing, which is suitable for your business.

Know more about pricing update 2024 and optimize the solution cost accordingly with our expert consultants.