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The 2024 release wave 1 for Dynamics 365 introduced powerful new capabilities and features aimed at transforming business operations. This release spans hundreds of features across key applications such as Sales, Customer Service, Field Service, Finance, Supply Chain Management, Project Operations, Human Resources, Commerce, Business Central, Customer Insights, and more.
Alongside these enhancements, some pricing adjustments were also implemented. Whether you are a new Dynamics 365 customer or an existing user of Dynamics 365 Finance and Operations or Dynamics 365 Customer Engagement, you may wonder how these changes will impact your costs.
This blog explores the updated Microsoft Dynamics 365 CRM pricing structure and provides insights on optimizing your license costs.
What’s included in Microsoft Dynamics 365 Customer Engagement (CRM)?
Dynamics 365 for Customer Engagement (CE) is a suite of applications designed to enhance customer relationship management (CRM), elevate front-line service operations, and boost sales teams’ productivity. In addition, it unifies customer interactions and data, driving business growth by providing a comprehensive view of all customer activities and interactions. This helps businesses make informed decisions and strategize effectively.
Dynamics 365 Customer Engagement includes the following applications:
- Microsoft Dynamics 365 Customer Insights (Previously known as Microsoft Dynamics 365 Marketing)
Depending on your company’s needs, you may have one or more of these apps implemented through a Dynamics 365 Implementation Partner, with users holding licenses for one or multiple applications.
Dynamics 365 Customer Engagement pricing overview
Before we discuss the licensing costs for each Dynamics 365 Customer Engagement application, here’s a breakdown of the starting costs for each Dynamics 365 CRM application.
| Application | Starting Price |
| Microsoft Dynamics 365 Sales | $65 per user per month |
| Microsoft Dynamics 365 Customer Insights | $1700 per tenant per month |
| Microsoft Dynamics 365 Project Operations | $120 per user per month |
| Microsoft Dynamics 365 Field Service | $95 per user per month |
| Microsoft Dynamics 365 Customer Service | $50 per user per month |
Dynamics 365 Sales pricing explained
Dynamics 365 Sales offers several licensing options, including Professional, Enterprise, Premium, and Microsoft Relationship Sales (MRS). It’s important to note that users with a Professional license cannot combine Sales Premium, Enterprise, or Sales Insights within the same environment. All Sales application options are licensed per user, though Sales Enterprise can also be licensed per device.
Dynamics 365 Sales Professional
The price of Dynamics 365 Sales Professional starts at $65 per month per user. This license provides essential sales force automation (SFA) for businesses with straightforward sales processes.
Dynamics 365 Sales Enterprise Edition
Dynamics 365 Sales Enterprise Edition goes beyond basic SFA, catering to more complex sales workflows. The price starts at $95 per month per user. In addition to everything available in the Sales Professional license, Sales Enterprise offers advanced customization, extensibility, embedded intelligence, and manual forecasting. It also includes Copilot in Dynamics 365 Sales, enhancing the sales experience with AI-powered insights.
Dynamics 365 Sales Premium
Sales Premium takes the Sales Enterprise capabilities and accelerates engagement and decision-making through prebuilt and embedded business insights that are easily actionable. This user-based license includes all Sales Enterprise features, along with Sales Insights automation and AI capabilities. Additionally, users benefit from full access to Copilot for Sales. Pricing starts at $135 per user per month.
Microsoft Relationship Sales
Microsoft Relationship Sales (MRS) empowers sales professionals to cultivate essential relationships for effective relationship selling. MRS combines Sales Enterprise functionality with LinkedIn Sales Navigator Advanced Plus, and it is also licensed per user.
Dynamics 365 Customer Insights pricing explained
Dynamics 365 Customer Insights now includes two applications: Dynamics 365 Customer Insights – Journeys (formerly Dynamics 365 Marketing) and Dynamics 365 Customer Insights – Data (formerly Dynamics 365 Customer Insights). Therefore, the new Customer Insights license includes rights to two separate applications.
Customer Insights is licensed per tenant and allows installation of both the Customer Insights – Journeys and Customer Insights – Data applications in up to four distinct environments for each application. The licensing also provides a base capacity of 10,000 Interacted People for engagement through the Customer Insights – Journeys app and 100,000 Unified People for profile unification via the Customer Insights – Data app, along with default Dataverse capacity. The starting price is $1,700.00 per tenant per month.
Dynamics 365 Field Service pricing explained
The Field Service user license includes access to Dynamics 365 Guides, Remote Assist, and the latest version of Field Service Mobile (a Microsoft product specifically designed for Field Service and distinct from Dynamics 365 Mobile Client). When you license Dynamics 365 Field Service, you automatically become entitled to 2,000 Customer Voice responses per tenant per month. The price starts at $95 per user per month.
Dynamics 365 Field Service – Resource Scheduling Optimization is also available as an add-in. It is licensed per resource with the price of $30 per month.
Dynamics 365 Project Operations pricing explained
Dynamics 365 Project Operations integrates sales, resource management, project management, and finance teams into one cohesive product, enabling you to secure more deals, speed up project delivery, and enhance profitability. The solution is licensed on a per-user basis, with a minimum user requirement. The pricing for Dynamics 365 Project Operations is set at $120 per user per month.
Dynamics 365 Customer Service pricing explained
Dynamics 365 Customer Service offers three user license options: Professional, Enterprise, and Premium, each offering different capabilities depending on your business needs. However, these licenses must be deployed in separate environments if you choose to purchase both. Additionally, the Enterprise license can be licensed by device.
Beyond these licenses, there’s also the Dynamics 365 Contact Center, an all-in-one solution designed to transform customer engagement across digital and voice channels, available at $110 per user per month.
Dynamics 365 Customer Service Professional
Priced at $50 per user per month, Dynamics 365 Customer Service Professional is designed for simpler customer service scenarios, providing essential tools for customer service agents. It includes access to a self-service portal and a knowledge base for customers, offering streamlined support for both teams and end users.
Dynamics 365 Customer Service Enterprise
The Enterprise license costs $105 per user per month and builds on the features of the Professional license, adding advanced capabilities like scheduling, dispatching services, and managing resources. As part of the package, Enterprise users receive 2,000 Customer Voice responses per tenant per month.
Dynamics 365 Customer Service Premium
The Premium license, priced at $195 per user per month, includes advanced features such as AI-driven insights, customer service analytics, and enhanced case management capabilities. It is ideal for businesses looking to leverage cutting-edge technology to improve customer service.
How does the Microsoft Dynamics 365 CRM pricing change impact users?
Changes in the Microsoft Dynamics 365 CRM pricing structure will have varying impacts on different user groups:
- Existing customers: Current users will continue to pay their existing rates until their next renewal date after October 1, 2024. This provides some time for businesses to adjust their budgets and plan for the increased costs.
- New customers: Prospective users will need to consider the new pricing when evaluating Dynamics 365 Customer Engagement as a potential CRM solution. Despite the price increase, the enhanced capabilities and features may justify the higher costs for many organizations.
Tips to manage the new costs
For organizations looking to manage cost changes, several strategies can be employed, such as
- Optimize license usage: Conduct a thorough review of current license usage to identify any underutilized or redundant licenses. By optimizing the number of licenses, businesses can reduce unnecessary expenses.
- Leverage discounts and promotions: Look for Microsoft discounts, promotions, or special pricing offers. These can provide significant savings, especially for larger organizations with substantial licensing needs.
- Consider long-term contracts: Negotiating long-term contracts with Microsoft can sometimes result in more favorable pricing terms. This approach can provide cost stability and predictability over an extended period.
Summing up
The new pricing structure for Microsoft Dynamics 365 CRM reflects the platform’s evolution and the substantial investments made in enhancing its capabilities. While the price increases may pose challenges for some organizations, the enhanced features, improved security, and unified interface offer significant value. By understanding the changes and implementing strategies to manage costs, businesses can continue to leverage Dynamics 365 to drive growth and efficiency.
As the October 1, 2024, implementation date approaches, it is crucial for both existing and prospective users to stay informed and plan accordingly. For more detailed information and personalized advice, it is recommended to contact a trusted Dynamics 365 partner. At Confiz, we can help you navigate the changes and ensure a smooth transition tailored to your specific needs. For expert guidance, reach out to us at marketing@confiz.com.
