Dynamics 365 Business Central: New Name – New Licencing Model

The current autumn releases of several Microsoft business solutions are on the market for a few weeks now. In addition to new features and improvements, the ERP software Dynamics NAV has also officially been named Dynamics 365 Business Central. Along with the new title there is also a new licencing model for the product.

What remains unchanged is the option to choose whether to purchase the software under the perpetual licencing model or simply rent it via subscription licencing. The former allows the buyer to purchase the solution for unlimited and unrestricted use and requires annual maintenance fee of 16%. In contrast, subscription licencing constitutes a model where the software can be used for a certain period of time. The subscription licencing model is therefore much more flexible and particularly suitable for cloud-based use as Software as a Service (SaaS). The product is billed monthly per user.

Business Central Licencing
Business Central Licencing (Source: Microsoft)

The licencing model underwent some changes during the introduction of Business Central. Instead of the previous Concurrent User model, the Named User model, which is already in place for nearly all other Microsoft products, is used now. The Concurrent User model merely offered restricted access to a set number of users being able to log into the system at the same time. In contrast, with the Named User model, only licenced users can be authorised – no matter whether they are working in the system concurrently or at different times. Every user who wants to access the system therefore requires his own licence. Existing Dynamics NAV customers with an active enhancement plan up to and including the 2018 version still have the option to extend their licence. In this case, previous Concurrent Users will also be available for purchase in the future.

Essentials and Premium packages

Previously, user licences were available as a Starter and Extended pack. The Starter and Extended packs have now been replaced by individual Full Users in the Essentials and Premium versions. The premium version also offers additional functionalities and modules. It is not possible to mix the users of Essentials and Premium packages. However, the Full User Essentials package suffices for companies that do not use the modules Service and Production. Full Users receive unrestricted access to all available functions of the licenced server software, including setup and maintenance of all parameters and functional processes within the ERP solution.

Business Central Licencing
Business Central Licencing (Source: Microsoft)

The majority of users within a company are so-called Additional Users. They can access data or reports in the system, complete simple tasks such as time logging and cost recording, or carry out bigger tasks that do not require the full range of user authorisations. Up until now, Additional Users had been licenced as Limited Users. In Business Central, the prior Limited User licence has been replaced by the Team Members licence, which features the same restrictions as the Limited User licence.

Business Central Licencing
Business Central Licencing (Source: Microsoft)

If you are planning an update to Business Central, we will gladly advise you on the best update and licencing strategy that is individually tailored to your needs. Please contact us! We will be happy to help you.



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