Microsoft Dynamics 365 Licensing and Pricing


If you are considering implementing Dynamics 365 it can be a tough task to get your head around Dynamics Licensing type, options and structure.

Whether you’re licensing a Dynamics 365 environment for the first time, renewing an existing licensing subscription or managing the migration of a legacy on premise environment into the cloud – Alletec can help you figure it out.

We need to carefully choose the licenses depending on scale and size of your organization as it impacts license types and app selection.

Dynamics 365 constitutes of various apps, and you can pick what your business needs. Following are the most important apps:

  • Sales
  • Customer Service
  • Field service
  • Project Service
  • Marketing
  • Commerce
  • Finance
  • Supply Chain Management
  • Human Resources
  • D365 Business Central

Below is some description of the core apps in Dynamics 365

Dynamics Pricing

With the new year, Microsoft came up with refined pricing structure for the Dynamics Apps and introduced Base and Attach licensing models. In order to license Apps, customer first or Base license must be the highest priced license for the user. Every full user must have a Base license.

Users requiring multiple core Business Applications may purchase as many Attach SKUs as needed at a reduced price.  Each Attach license can only be assigned to a user with a qualifying prerequisite Base license. Always refer below license chart for base and attach SKU’s mapping and minimum seat count

Some apps have a Professional and an Enterprise version. Here are some differences in the two versions:

Customer Service Apps: Professional license gives access to Core functionality like lead creation, mobile access, Case management etc. But with Enterprise you get access to reports, chats, dashboards, define and configure every aspect of the system to your needs.

Similarly, in Sales App: Professional license give full access to core Sales functionality including Leads, Opportunities, contacts, quotes but with Enterprise you get access to Unified Service Desk, Embedded intelligence, knowledgebase and many other features.

But with these two license types comes a complication which needs to be understood cautiously. The Enterprise and Professional applications are not meant to be combined within an organization and may not be deployed on the same instance; however, they may be deployed on the same tenant.

Apart from the above-mentioned apps, Microsoft has also introduced supporting apps and add ons

  • Customer Insights: Unifying data from across numerous sources, this app gives users a single view of customers, helps boost engagement to help businesses and produce personalized experiences.
  • Customer Service Insights: Using machine learning, this app enables businesses to offer better customer service by measuring performance across channels, using data analysis to highlight areas for improvement
  • Digital Messaging: is an add-on capability for Customer Service Enterprise that includes Chat for Dynamics 365 Customer Service, 3rd party SMS, and future social messaging channels
  • Chat For D365 Customer Service: helps agents engage in real-time with customers and resolve issues faster
  • Virtual Agent for D365 Customer Service: combines the power of Power Virtual Agents with Customer Service Insights to empower customer service teams using AI generated insights from Customer Service Insights to easily create powerful bots to drive toward automation, without the need for data scientist or developers
  • Sales Insights improves engagement and decision-making with prebuilt and embedded insights to businesses that are quick to deploy and easy to act upon. It includes assistant, email engagement, auto capture and business card scanning
  • Fraud Protection: is a cloud-based anti-fraud solution for medium to large-sized organizations, designed to help lower fraud-related costs, increase profits, and improve customer experience
  • Forms Pro: creates surveys and polls to collect customer feedback, measure employee satisfaction, and organize team events
  • Gamification: allows customers to incentivize their workers by turning work into play via individual and team contests
  • Power Apps: is a suite of apps, services, connectors and data platform that provides a rapid application development environment to build custom apps for your business needs. Using Power Apps, you can quickly build custom business apps that connect to your business data stored either in the underlying data platform or in various online and on-premises data sources (SharePoint, Excel, Office 365, Dynamics 365, SQL Server).

Microsoft has a vast pool when it comes to licensing, not only there are many apps to license according to requirement but there are different channels to procure those licenses depending on customer’s current licenses, need, scope and financial capability. Microsoft offer different channels to customer to buy licenses.

Alletec is a global SPA partner and CSP direct partner in United States, Australia, India, Hong Kong, Malaysia, Singapore, Maldives, Nepal, Srilanka, Thailand, and few more Asian countries.

Ready to begin your Digital Transformation with skilled expert, contact us @ info@alletec.com and we can help you with the further details.

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