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Microsoft publishes October release: Dynamics NAV becomes Dynamics 365 Business Central

Microsoft rolled out the October releases for some of its business applications. The new version of the ERP software Dynamics NAV not only includes new features and improvements, there is also a new name: Dynamics 365 Business Central (On-Premises).

It has already been known for some time that after the last published version Dynamics NAV 2018, no new release will appear under the former name. Instead, the product line continues themed Dynamics 365 Business Central. Customers who are currently using a local Dynamics NAV solution can continue using it in future, but all subsequent versions of the product line will be published under the new name.

Dynamics 365 Business Central Roadmap
Dynamics 365 Business Central Roadmap (Source: Twitter/atotovic)

For new customers Dynamics NAV 2018 is only available until December 31st 2018. After that date there will only be Business Central (On-Premises) available. In addition, existing customers with Dynamics NAV 2009 or older versions can no longer upgrade to NAV 2018 starting January 1st 2019, only to Business Central (On-Premises).

Dynamics NAV customers with an active Dynamics Enhancement Plan can continue to use their current installation or upgrade to Dynamics 365 Business Central (On-Premises). The existing Dynamics NAV licenses and functions will be transferred to Business Central (On-Premises) accordingly. Downgrading to Dynamics NAV 2018 or earlier versions won’t be possible any longer.

New name – new licensing model

The release of Business Central (On-Premises) is also accompanied by a modified Business Central licensing model. Microsoft changes from the Concurrent User to the Named User model. With the Concurrent User model, access was limited to the number of users who can login to the system at the same time. In the Named User model, which is used in almost all other Microsoft products, only the licensed users can be authorized – regardless of whether they work simultaneously or with a time delay in the system. Existing Dynamics NAV customers with an active enhancement plan up to and including version 2018 can continue to buy the previous Concurrent User licenses.

Furthermore, the Starter and the Extended Pack are no longer available. Instead, you can now choose between Full User Essentials and Premium. A combination of Essentials and Premium users is not possible. For companies that do not use the modules Service and Production, the Full User Essentials is sufficient. In addition, instead of Limited Users, there is now the Team Members license with the same limitations as the previous Limited User. When updating to Business Central, the license components will be transferred accordingly.

User Model in Dynamics 365 Business Central
New user model in Dynamics 365 Business Central (Source: Microsoft)

Licensing can continue to occur either via the Perpetual Licensing Option (purchase license) or the Subscriptional Licensing Option (rental license). Perpetual Licensing provides the purchase of the software for permanent and unrestricted use. Subscriptional Licensing, on the other hand, is a subscription model in which the software can be used only during the term of the subscription period. The Subscription Licensing model provides more flexibility and is specifically targeted for using the solution in the cloud as Software-as-a-Service (SaaS).

Dynamics 365 Business Central (On-Premises) is officially available since October 1st 2018. Further information about the Business Central innovations, especially the new licensing model, will be available shortly on our blog.

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