Microsoft Dynamics 365 is an intelligent business applications in the cloud and it is designed to help businesses accelerate digital transformation.
As businesses continue to adopt new technologies to remain competitive, many companies are choosing to achieve their goals by subscribing to cloud-based subscription services (SaaS) to stay relevant.
But, there is a misconception that having a CRM is viable only for enterprise business and it is not very effective for medium and small companies. That’s not true. If you look at the larger picture, it all comes down to choosing the right licensing options based on the business need. Remember, one of the most important decisions you make at the early stage of your business is choosing the right licensing options for your teams. Make sure you get them right.
You may ask why?
Do you know that unused licenses create up to 38% of technology waste for companies that don’t have visibility into their software?
In this blog, we will explore the different types of Microsoft Dynamics 365 licensing options and how you can choose the right licensing plan for your business.
Microsoft Dynamics 365
Microsoft Dynamics 365 is the next generation of intelligent business applications in the cloud and the applications are designed to help businesses accelerate digital transformation to meet the changing needs of customers.
Understanding Dynamics 365 – Dynamics CRM + Dynamics AX
Microsoft Dynamics 365 is a combination of Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP). Earlier, these were called Dynamics CRM and Dynamics AX.
A break-down of Dynamics 365 is divided into two sections.
- Customer Engagement
- Unified Operations
Customer Engagement includes applications such as: Sales, Marketing, Customer Service, Field Service and Project Service Automation.
Unified Operations includes applications such as: Retail, Talent, Finance & Operations which fall under ERP functions.
Types of subscriptions and product licenses in Dynamics 365
One of the advantages of Dynamics 365 is the wide variety of options available for businesses of all sizes. The bundled plans become a cost-effective option if you are looking at leveraging the functionalities of the sales and service.
Dynamics 365 Plan
This is a bundled plan that offers both the CRM and ERP functionalities. In addition to Customer Engagement and Unified Operations, it also comes with Power Apps.
Dynamics 365 Plan
Unified Operations | Customer Engagement
Dynamics 365 Customer Engagement Plan
The Customer engagement plan is packed with functionalities that can boost your sales and service campaign. To fulfil your marketing needs, Dynamics 365 Customer Engagement plan is what you need. As an add-on, there’s power apps and Marketing App included in the plan. But the functionalities of the marketing app can be utilized only if your organization have more than 10 users.
Here’s a run-down of the Dynamics 365 Customer Engagement Plan
Customer Engagement Plan
Sales | Power Apps | Marketing App
Project Service Automation
If you are a business with limited capabilities and wish to opt for a portion of the Customer Engagement Plan, you are allowed the license to benefit from modules like Sales which are available independently.
Dynamics 365 Unified Operations Plan
If you are a business on the finance and operational front, Dynamics 365 Unified Operations Plan is the right fit for you. It has all the capabilities your business requires to stay ahead of the competition. You can opt for additional devices at a price along with the plan.
Here’s a run-down of Dynamics 365 Unified Operations Plan
Finance & Operations | Power Apps
Having covered all the three plans of Dynamics 365, let us quickly move on to the licensing options. It is one of the most important things for a business to consider before choosing their licensing options.
What are user licenses?
User licenses in Dynamics 365 refers to a license dedicated to a particular user. Each user should have a unique user license to access Dynamics 365. As the user licenses are dedicated licenses, they cannot be shared. If your business has limited device licenses and more user licenses, you are efficiently cutting down on costs as your team is able to access Dynamics 365 on any licensed device to get their work done.
Under User Licenses, there are two more options available at your disposal.
Light User | Team Member License
Full User | App License and Plan License
Light user license is for members who are tagged to more than one job/responsibility. The functionality of the light user is to provide basic read and write access for lighter tasks across Dynamics 365 applications. For a light user, there’s no restriction on the Customer Engagement Plan or Unified Operations Plan, but to configure one or more light users, there should be one full user assigned to the plan to administer the service.
Full user license is for your sales head and finance functional heads who needs to have a future rich access to Dynamics 365 applications.
What are device licenses?
Device license is another cost effective option for your business if you have more user licenses and fewer devices. With the help of use rights, you can license fewer number of devices that can be shared by users.
With share device login, multiple users can login and get access to the following applications.
Choose the right licensing plan for your business
When it comes to choosing the right licensing plan for your business, there’s no one-size-fits-all solution as Dynamics 365 is offering solutions your business may need at any given stage. It allows you to choose from a host of plans including Customer Engagement Plan, Unified Operations Plan or the combined Dynamics 365 plan to meet the changing needs and to accelerate your business growth.
Still unsure if you have the right Dynamics licenses? Use our free check to confirm what Dynamics 365 licenses your team need based on their usage of the product.