24 Dec Licensing and pricing considerations to upgrade from Dynamics NAV to Business Central
With the launch of Microsoft Dynamics 365 Business Central, 2 product modalities will coexist: Business Central On-Premise and Business Central Cloud. Although it is the same product with the same functionalities and same core, the licensing and pricing will be different.
Business Central On-Premise Licensing
With the launch of Business Central On-Premise, the concurrence of users disappears, that is, the licenses become named users. This is the first big change regarding the On-Premise licensing. In this way, each user who has to access Business Central On-Premise must have a license configured and, therefore, there can not be more users configured than licenses available.
What does this mean for the transition from your current Dynamics NAV license to BC On-Premise?
When you decide to transition to Business Central, if you have paid the BREP to Microsoft, you will be offered a free Business Central Essentials user for each full user that you have in your current license. This means that you will have double the licenses in Business Central. Attention! This applies to all users acquired until the date of the announcement, which was last October 1st. It does not apply to subsequent purchases that you may have made.
From Grup de Serveis Triangle we believe that for 90% of customers this conversion factor of 1 to 2 is more than correct. Do you think the same? Is this conversion factor valid for your company? Let us know your opinion in the comments section.
If the answer to the previous question is a ‘no’, you want to know that Team member users (formerly known as Limited User) gain in functionality. An exercise that you can move forward is to specify which users are mostly in consultation or use a very specific functionality within the application.
And finally, if your license is Extended, that is, you use the manufacturing and service modules, your license transitions to Premium users so you can continue using the same functionality.
Business Central On-Premise Pricing
Regarding prices of the On-Premise mode, as users become named users, the price per license decreases and, for example, a BC On-premise Essentials license now costs € 1,500 per user compared to the € 2.250 that it cost so far . Remember that the annual BREP that must be paid to Microsoft is still active for this type of licensing.
If you are currently working on a subscription, contact us and we will explain how to transition your license, since important changes have also been made.
Business Central Cloud Licensing
Ready to transition to Business Central Cloud?
First of all you should know that your Dynamics NAV On-Premise license does not transition to BC Cloud but it can be converted. The Business Central Cloud license is monthly payment per named user (and they have no concept of additional annual BREP). If you want to make the jump to the cloud, once the license has been converted you will stop paying the annual BREP and you will have a 40% discount on the user’s price until June 30, 2021 (if you have the active BREP on your current license) .
Business Central Cloud Pricing
Microsoft Dynamics 365 Business Central Cloud comes on the market with an aggressive price of € 59.03 per user per month. Aggressive price if we take into account that this amount includes both license and accommodation. The prices indicated in red in the following image correspond to the applicable prices with the discount of 40%. Remember that this discount is applicable until June 30, 2021, regardless of when you make the change to Business Central Cloud.