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Microsoft Dynamics 365 Licensing Demystified?Insight written by William Wu on September 8thLicensing has historically caused some pain. Even though most?users don’t exist in traditional departmental structures anymore, licensing by application has stayed in the same constrained parameters as it always has. Which is why the impending launch of Microsoft Dynamics 365, with an all new licensing model, is going to be revolutionary.Microsoft Dynamics 365?is Microsoft’s new approach to end-to-end business intelligence. Designed to improve productivity and collaboration in your business, Dynamics 365 is a cloud platform that fully integrates all of your data from business apps with Office 365, Power BI, Azure, and Cortana Intelligence.No matter what your role is, everyone needs some access to data that is held in business apps. Although credit controllers should only need access to?Finance, they are able to provide additional value to those numbers when they can see what’s in the Sales pipeline. In the license by application model, only the lucky few that you’ve paid for have access to this data. When the time comes to find something that doesn’t fall under your department, the reality is that you have to ring up a person with access and waste their time trying to find that information.Pay For What You Need With Dynamics 365The new licensing model in Dynamics 365 is inclusive, where roles are built around business outcomes. Everybody gets access to the functionality they need across Apps, Plans, and Team Members – the building blocks to the licensing structure. These three building blocks essentially offer you a spectrum of licenses to pick and choose from for one or many products, for any type of user, and for businesses of any size.??Here is an overview of what these new terms (Team Members, Apps, and Plans) mean:TEAM MEMBERSRoles can be much more productive and effective when they have the opportunity to range across all the business apps deployed within the client. A Team Member license in Dynamics 365 gives read rights to all other apps. If you cover a person with this license, they can review data from all Dynamics 365 applications. Why is this such an exciting new offer? Because it means that there are no barriers for allowing your employees to consume information anymore.One Team Member license instantly makes use rights and knowledge sharing accessible to all employees – which also puts an end to double licensing. You do not need to buy a separate license for someone that wants to read data in Dynamics AX and in Dynamics CRM. Team Member licenses are included in all Apps and Plans.If you buy Dynamics 365 Enterprise Edition for Team Members, you get this:One SKU that covers all light use scenarios and knowledge sharing use rightsLimited rights to power apps and flow so you’re plugged into the platformA rich feature set in addition to collaboration toolsLower TCO! i.e buy more seats, pay lessAPPSLicensing by application is still relevant and available. With Dynamics 365, you have the option to buy applications individually or buy them through a Plan. The core applications available in Dynamics 365 are: Financials, Operations (Dynamics AX 2016), Sales, Field Service, Customer Service, Customer Insight, Project Service Automation, and Marketing. Power BI and Cortana Intelligence will be embedded in all apps. They will also come with two new extensibility apps, PowerApps and Flow, which allows you to pull data from any app and data source and build web apps and workflows based on all those data sources. You can buy Dynamics 365 apps on a standalone basis and add to them easily through Microsoft AppSource as you grow.PLANSLicensing by Plan is a package of apps for companies with people who need to access multiple apps. This option is more affordable when you need a solution that caters to Joe who does Sales and a bit of Marketing and Mary who does Operations and Finance. Dynamics 365 takes these normal roles and adds value by giving these employees the flexibility they need to work in more than one app. By leveraging the integration across the Dynamics 365 platform, you are enabling your employees with more information to do their jobs better. You also have the ability to build whatever customized role within the span of the use rights in the plan. If you have a user who leaves, you can easily adjust what an employee uses or assign to other employees over time.Here are the Plans available in the Dynamics 365 Enterprise Edition:Plan 1Dynamics 365 for SalesDynamics 365 for Customer ServiceDynamics 365 for Field ServiceDynamics 365 for Project Service Automation+ Microsoft PowerApps and Microsoft Flow (only available through Plan)Plan 2Includes all the Plan 1 apps + Dynamics 365 for Operations (Dynamics AX 2016/Version 7)Manufacturing and Supply ChainRetail and CommerceFinanceNote: Dynamics 365 Business Edition is currently only available for Financials. You can purchase per user for full users and for Team Members. Dynamics 365 Business Edition Plans will be available next year when Microsoft will also be releasing Sales and Marketing.Choose Your License Based on User TypeIn every business you have a mix of highly specialized employees and general employees. Because of this, Microsoft has segmented its licensing based on two broad categories of users: Light Users and Full Users.Light Users?are your everyday people who read and consume data. They don’t need full permissions to every single department, but in order to do light task like write reports, they still need to be able to see data across the company.Full Users?are professional users, people who specialize in one business application. These are the employees with licensed business apps and full permissions today.??The fully inclusive licensing model in Dynamics 365 designed to support every employee. Every company has a mix of generalists and specialists. The licensing solution for Team Members encourages operational transparency, granting every employee access to the read rights to the business applications deployed within the client. Licensing by application is still a requirement for?full users so you can still simply buy the Sales app and get the Sales app. But, the key component here is the ability to mix and match with Licensing by Plans, and that’s where we think Dynamics 365 really stands out. You can now buy any combination of licenses that suit your specific needs which is something we have never seen before!Two licensing models for Microsoft Dynamics 365Microsoft Dynamics 365?has?two licensing models:1) Named user subscriptions,?which classify users into?two types: full user and light userFull users need access to the full range of rich features and functionality in business apps. These are people in?roles like?sales, customer service, finance,?and supply chain management.?In the past, these users have been referred to as Pro Users or Power Users.?In?Dynamics 365 licensing, a full user?is licensed with either a Dynamics 365 Plan or Dynamics 365 application subscription.Light users typically consume data or reports from line of business systems and complete tasks like time and expense entry or HR record updates. In?Dynamics 365 licensing, a light user is licensed?with the Dynamics 365 for Team Members subscription.2) Device licensing, available for the Enterprise edition, for shared device scenariosNew: Dynamics 365 Plan subscriptionsThe hero offerings in Dynamics 365 are Plans. We are grouping together a set of apps with Microsoft PowerApps and Microsoft Flow for a robust offering to customers. The user who needs everything is rare, but many users?require the flexibility to utilize pieces of functionality in multiple apps as?they are needed. Plans provide that flexibility.When compared to the Microsoft Dynamics CRM Online Pro license, there are differences?to what is included in the Dynamics 365 Plan 1 applications.?With any of the Plans, or with single Plan 1 business apps (Sales, Customer Service, Field Service, Project Services Automation),?one portal license is included.?The default storage has been increased from 5GB to 10GB per tenant, and additional storage received when adding users has been increased to 5GB per 20 Plan or app users. A 40-user company will now get double the storage – 20GB instead of 10GB.Social Engagement will be included within?each of?the Dynamics 365 Enterprise Plans and the Enterprise Plan 1 business?applications, andwill not have the 10 seat minimum?to unlock.?Microsoft Dynamics?Marketing,?Parature, and?Microsoft?Dynamics Marketing Sales Collaboration will not be part of the Dynamics 365 service.?We’ll share?news about these?capabilities as the information is available.????If you have been frustrated with the 5-user minimum for Dynamics CRM Online in the Cloud Solution Provider program, I have great news for you. With Dynamics?365,?no?minimums apply for commercial customers for Plan?1, any?single?business application?in Plan 1,?or the Team Members subscription.?Minimums may apply for non-profit or academic customers.?Enterprise?Plan 1 offers partners more opportunity to expand to additional users or divisions within the customer with the additional business apps?that are included.?It also?has the potential to increase deal size with additional Microsoft Azure services like Cortana Intelligence Suite.?The new Team Members offer delivers organization-wide value?that can help you expand the Dynamics 365 footprint?for users who?may not have been a part of the?sales or service process previously.???In line with the licensing changes I noted above?with regard to?Dynamics CRM Online Pro, the pricing structure changes as well, with the addition of the portal license and Social Engagement and the increase in storage for the Enterprise apps and Plan 1. For a customer that wants more than one app, Enterprise Plan 1 is a cost-effective solution.For partners, selling Enterprise Plan 1 is an opportunity to expand to additional users or divisions within a customer with the additional apps. And, the inclusion of Microsoft PowerApps – part of?the Microsoft common application platform?along with Microsoft Flow and the Microsoft Common Data Model??–? means that you can create new mobile apps that harness data from Office 365, Sales, Operations, and third-party applications. This?common?application platform?helps?simplify data management and integration across apps and business processes. Understanding this common application platform?is?important for articulating?the value proposition?of Dynamics 365 to your customers.Learn more about the Microsoft Dynamics 365 common application platformDynamics 365 introduces the benefit of lower marginal cost per unit as user counts increase on select subscriptions. Tiered pricing applies to Enterprise edition Plan 1 and Team Members, Enterprise Edition. While there are no price tiers on Enterprise edition Plan 2, the Plan 2 subscription counts toward Plan 1 price tiers levels. Plan 2 will be most applicable for users who need both Operations and a Plan 1 application or PowerApps.Licensing programs for Dynamics 365Microsoft Dynamics 365 will be available in the Cloud Solution Provider program?for all Plans and business applications.?There is no minimum except for the Plans or apps that include?Operations, which has a 20-user?minimum. ................
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