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.
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.
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.
For new customersDynamics 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.
In order to keep up with digitization in the corporate world, even classic business applications are on trial. In many companies there is need for action in order to map all segments across the value chain in future by an integrated solution.
At Microsoft the traditionally separated fields of ERP and CRM are growing together under the umbrella brand “Dynamics 365”; the integrated business application suite “Business Central” is a major part of this. Modern software solutions like this offer lots of opportunities, but the scope of implementing such a system should never be underestimated.
Even though new business applications have different pricing models than before and even offer leasing models, the implementation and conception of such a software solution is still a major investment. And even if manufacturers keep talking about “self-service” and there is no longer a need to provide your own hardware, for complex business processes it will always be necessary to include consultants with experience from other similar projects. Many companies will have to check and adapt their existing processes to the parameters specified by the new software. To this end, lots of plans and discussions are required to ensure the success of the project. So it’s worthwhile to keep the following principles in mind before launching a new project.