How is Microsoft Dynamics 365 Business Central licensed?

EERP software is one of the most important systems in a company. Choosing the right solution, as well as the implementing company, requires solid preparation, testing and patience. In the area of licensing, so far the most popular model has been “on premises”, because it often only required a one-time purchase, and most Manufacturers preferred this model.

How is this topic today for Microsoft Dynamics 365 Business Central licenses?

Po pierwsze Microsoft daje wybór (przynajmniej na dzień publikacji tego materiału). Oznacza to tyle, że użytkownik decydując się na zakup licencji ma możliwość zakupu licencji w klasycznym modelu „on premises” lub „cloud”.

In the “on premises” model, the software license is only a part of the required environment for a production startup, because in addition to the need to purchase a license on the customer's side, it remains to purchase the infrastructure with the required software, i.e. Windows Server, as well as Microsoft SQL. Of course, this does not always have to be the purchase of a physical server. The customer also has a choice in terms of billing method. For the “on premises” model, subscriptions (opex) and perpetual licenses (capex) are available. In the case of the latter, an Enhancement Plan of 17% on the value of the licenses purchased is added to the price. It allows for license expansion (purchase of new users, module extensions) or access to system updates.

The “online” or “cloud” model is currently the most developed licensing model. The main difference is that in addition to the software, the customer also receives the infrastructure, hence the threshold for entry into a professional ERP system is lower. In this model, only subscriptions are available on an annual or monthly basis. In addition, in combination with other Microsoft 365 services, the integrity of individual services works sensationally, including user management from a single panel.

Which model is better?

There is no clear-cut answer, because as is often the case in IT, “it depends” on the client's needs and capabilities, i.e. the form of financing (often in the case of grants, perpetual licenses are the only option), the planned budget, the number of users, the planned complexity of the system, the amount of data processing and integration with other systems. The decision to choose the right model should be supported by a case-by-case analysis.

In addition to the licensing model, there are 3 system packages available for Microsoft Dynamics 365 Business Central software:

• Essentials: the base version of the system, is designed to handle tasks in financial management, logistics processes, as well as service management. It is mainly aimed at trade and service companies.
• Premium: this version is designed for organizations requiring a wider range of functionality. In addition to the capabilities of the Essentials package, it includes additional modules like production management (BOM, marshalling, production order costing, capacity planning, demand planning, demand forecasting) and service. It is targeted at manufacturing companies, among others.
• Team Members: this license is dedicated to users who are supposed to shitty read data from the system and make minor edits.

Finally, 3 most important information to consider when choosing a Microsoft Dynamics 365 Business Central licensing model:

• It is not possible to combine Essentials and Premium package. Either one option or the other. On the other hand, you can bundle Team Members licenses with each package.
• For the Polish market, the inseparable element of the license is the Polish localization module. This module contains the Polish interface of the program and a number of functionalities adapted to Polish conditions and laws.
• Regardless of the package or licensing model, every user logging into the system requires an assigned license.

Masz pytania dotyczące Dynamics 365 Business Central? Skontaktuj się z nami - tel: 177415350, email: biuro@innovation-se.com.

SOLIDEXPERT INNOVATION is an authorized Microsoft partner and offers a full suite of implementation and support services for MS Dynamics 365 Business Central and ERP integration with SOLIDWORKS PDM.