Microsoft Dynamics License Changes

Share This Post

đŸ”ș Changes Effective October 1, 2023:

đŸ’” Price Increases:

  • An 11% price increase applies to Dynamics 365 Business Central.
  • A 15% price increase specifically applies in Sweden.

📊 Enhancement Plan Fee Increase:

  • Microsoft’s Enhancement Plan Fee has increased from 17% to 18%.
  • This fee applies to your annual license renewal and any new license purchases made after October 1, 2023 (prorated accordingly).

What This Means for You:

  • Your existing license investments remain unchanged.
  • Any additional licenses or application objects (e.g., tables, reports, pages) purchased after October 1, 2023, will reflect the new pricing.
  • We recommend evaluating your licensing needs early to optimize costs before future increases.

🔁 Changes Effective April 1, 2025:

🔒 Licensing Model Transition:

  • Microsoft will discontinue perpetual (one-time) license purchases for new customers.
  • Only subscription-based on-premises licensing will be available moving forward.

What This Means for You:

  • If you’re an existing customer, you can continue to upgrade or expand your current licenses with no disruption.
  • These changes impact new customers only, who must transition to a subscription model starting April 1, 2025.

💡 A1 Dynamics Ltd Guidance:

In line with Microsoft’s updates, A1 Dynamics Ltd will also adjust our licensing and service pricing effective:

  • October 1, 2023 – in line with Microsoft’s pricing changes.
  • April 1, 2025 – to reflect the licensing model shift.

We remain committed to supporting both cloud and on-premises customers. While Microsoft continues to push a cloud-first strategy, on-premises solutions will still be supported. We encourage customers to assess whether a transition to Microsoft’s SaaS/cloud environment may better serve their future needs in terms of scalability, security, and flexibility.

📞 Need Help Planning Your Next Steps?

Our team is available to discuss how these changes may affect your organization and help you determine the most cost-effective path forward—whether that means locking in additional licenses now, reviewing your enhancement plan, or beginning a gradual cloud transition.

Please don’t hesitate to contact us at support@a1dynamics.com or reach out to your A1 Dynamics account representative.

More To Explore