Microsoft has announced the next stage in its efforts to modernize licensing for Dynamics on-premises business, moving towards a subscription model with unified pricing and customer choice of deployment topology.
"As we continue transforming our Dynamics on-premises business, we want to further harmonize the purchasing decision across cloud and on-premises services. For most customers, we believe a Dynamics 365 online solution remains the preferred approach, but we recognize some customers will continue to require an on-premises solution."
What is changing and when?
Business Model Update (Business Central)
Starting April 1, 2025, new customers licensing Dynamics 365 Business Central (on-premises) will use subscription licensing, with sale of perpetual licenses to new customers for these products being discontinued at that time.
Pricing Update
Dynamics On-Premises Subscriptions (Business Central, NAV). Over the next three years, Microsoft is targeting to better align DPL subscription prices with Dynamics 365 online CSP pricing. The initial adjustment to subscription pricing will take place on October 1, 2023.
Dynamics On-Premises Perpetual (Business Central). Effective October 1, 2023, local currency perpetual license prices for Business Central (on-premises) will increase in some regions, consistent with prior Dynamics 365 online pricing changes.
Dynamics On-Premises Enhancement Plans (EP/AP). Effective October 1, 2023, the annual price of Enhancement Plans (EP) and Advantage Plans (AP) will increase by 1 point (e.g., EP from 17% to 18% of PLP).
