Tag Archives: Perpetual Licencing

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.

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