How much does a Dynamics 365 implementation cost in 2022?

Microsoft Dynamics 365 implementation costs have numerous tiers. Here are factors that affect the cost and methods for cost reduction.

Microsoft Dynamics 365 is a cloud-based application that combines CRM and ERP systems components, the forces that drive this application forward are productivity applications and AI tools.

Today’s Dynamics 365, which supports the cloud, on-premise, and hybrid solutions, is the rebranded version of Microsoft Dynamics CRM and Microsoft Dynamics AX. Businesses can find suitable solutions and make reliable decisions with the application’s data-driven insights.

People, process, and technology perspectives are the three factors that govern a successful Microsoft Dynamics 365 implementation in the business world. These dimensions help businesses adapt to the constant changes that their respective industries undergo constantly.

How much does it cost to implement Microsoft Dynamics? What are the components that decide the final cost?

Cost components of a Microsoft Dynamics 365 implementation

Different components affect the price of a Dynamics 365 implementation. Therefore, organizations must consider the cost of the implementation and efforts. Listed below are the components that affect the final cost of implementation.

• To get the business case approved
• To define key business outcomes
• To elicit business requirements
• To implement the solution
• To license the software
• To upgrade the solution to the latest version
• To support the ongoing maintenance of the software application.

Internal costs are crucial

Most of the time, organizations tend to focus on external costs and overlook internal costs. Yet, internal costs affect the final price just as external costs do. Listed below are internal factors that intervene in the final cost.

• Resource requirements
• Disruption to the Business
• The lack of seasoned professionals to conduct an activity if internal resources contribute to the project deliverables.

Microsoft Dynamics 365 has three license types to choose from:

1. a) Essentials: $70 per user per month

This license entails the following:

1. Financial Management
2. Supply Chain Management
3. Customer Relationship Management
4. Human Resources Management
5. Project Management
6. Warehouse Management

1. b) Premium: $100 per user per month

This license comprises the following:

1. Everything in Essentials
2. Service Management
3. Manufacturing

1. c) Team Members: $8 per user per month

This license is open to the following:

1. Read anything within Business Central
2. Update existing data and entries in Business
3. Approve or reject tasks in all workflows assigned to a user
4. Create, edit, delete a quote
5. Create, edit, delete personal information
6. Enter a timesheet for Jobs
7. Use Power Apps/Power Automate Use Rights with Dynamics 365 license

Note: The various Microsoft Dynamics 365 plans and how much they each cost.

These plans come with a 30-day free trial, and many of the paid features are not available during the trial period. Microsoft Dynamics 365 allows users to buy add-on apps that can precisely help organizations meet their business requirements.

Ways for cost reduction

• Use templates – Export templates from Microsoft Dynamics 365 and then export the data from source systems following the templates. The use of available templates reduces data migration costs, reflecting the final price.
• Avoid customization – Customization might have to be left out. Adapt Dynamics 365 without any customizations for a much more cost-efficient implementation.
• Say no to minute automation – Try not to automate everything. Instead, automate critical functions.
• Consolidate technology platforms – There is a massive spike in implementation cost when businesses run on multiple Dynamics 365 instances. If all technology platforms can be consolidated, that can lower the pricing further.

DemandDynamics – A way to budget-friendly implementation

DemandDynamics is a Microsoft Gold certified partner and has coordinated with numerous companies for Dynamics 365 implementation and migrations. It is an organization that extends expert support to clients to benefit their Businesses and goals.

DemandDynamics’ On-Demand Services are popular amongst clients as they serve their purpose in a pocket-friendly way. If you would like answers to questions regarding the ODS model or Microsoft Dynamics 365 implementation, one of our experts can help you with a quick phone call.