Microsoft Dynamics 365 Licensing

Published: 17 October, 2018

Microsoft have released new licensing guidelines for Dynamics 365 in October 2018 including changes to:

Team Member licenses
Marketing app pricing
Customer Service license offerings
Portal allowance.

All these changes will be in effect for new users of the affected apps from 1^st October 2018. For some updates, there are grace periods for existing users.

Team Members

One of the most notable changes is to the Team Member license type. For those who are unsure, a Dynamics 365 Team Member license is a named, limited functionality user type intended for use in certain basic Dynamics 365 use scenarios; across all the apps.

The intended use cases for this license type have been simplified to the following:

Access	Dynamics 365 Mobile Client Application Dynamics 365 for iPad and Windows Dynamics 365 for Outlook Dynamics 365 Web application
Read	All Dynamics 365 application data Custom entity data
Approve	Dynamics 365 Unified Operations Plan functionality: Time, Expense, Invoices
Portal/API Access Only: Create, Read, Update, and Delete (CRUD)	Employee self-service: cases
Entities: Create, Read, Update, and Delete	Maximum of 15 custom entities Dynamics 365 Unified Operations Plan functionality: Time and Expense Dynamics 365 Unified Operations Plan functionality: Requisitions Dynamics 365 Unified Operations Plan functionality: Quality Control Contacts Activities and Notes Personal views; Saved Views Shared Azure Announcements
Entities: Actions	Dynamics 365 Unified Operations Plan functionality: Manage Budgets Dynamics 365 Unified Operations Plan functionality: Manage personal info Dynamics 365 Unified Operations Plan functionality: Manage direct reports and candidates Chat with support team (as chat client for self-service, requires 3rd party solution) Use Yammer collaboration requires a Yammer Enterprise license (acquired separately) Add or remove a Connection (stakeholder, sales team) for an Account or Contact Associate a Marketing List with an Account or Contact Post & follow activity feeds Use a queue item Start dialog Perform mail merge Submit Time & Expense for Project Service Automation Update Project Tasks for Project Service Automation Update Own Resource Competencies for Project Service Automation Apply for Open Project Position for Project Service Use Project Finder Mobile Application
General System Use: Actions	Use relationships and connections between records Search and Advanced find search Export data to Microsoft Excel
Additional Services and Software	Dynamics 365 – Gamification Fan and Spectator Microsoft Project Online Essentials

Note the restriction of CRUD access to custom entities is now 15 per application as opposed to unlimited. Create, Update, and Deletion rights to Accounts have been revoked. Portal access has also been removed. Managing/publishing of knowledge base articles know requires a full Customer Service license.

Marketing App Amendments

Upon product release, Dynamics 365 for Marketing was priced tiered by number of contacts in the database. The change to the pricing here is simple – the pricing is now based upon number of contacts in your database that you market to. So, if you have a database with 1,000,000 contacts and you market to 100,000 of them, you pay for 100,000 contacts.

Once counted, you can only REDUCE your number of marketable contacts if you delete them or if they permanently become non-marketable. Contacts are additive and may not be replaced month to month.

There are then additional contact packs to be purchased if your number of marketable contacts increases:

Additional to the pricing change, Dynamics 365 for Marketing now supports 33 new languages, and it is now available in every market geography that Dynamics 365 for Sales is supported in. You can check if your country and language is supported.

Customer Service Professional

Following Dynamics 365 for Sales [Enterprise] and Dynamics 365 for Sales [Professional] licenses announced earlier this year, October 2018 brings the Dynamics 365 for Customer Service [Professional] license.

Similar to the two Sales app licenses, the Dynamics 365 for Customer Service [Enterprise] and Dynamics 365 for Customer Service [Professional] licenses cannot be rolled out together in one instance.

The Customer Service Professional license is for customers with less complex service scenarios, only requiring core support functionality.

The difference in functionality can be seen here:

Function	Professional	Enterprise
Unlimited named users	Yes	Yes
Case management	Yes	Yes
Knowledge management	Yes	Yes
Social customer care	Yes	Yes
Mobile	Yes	Yes
Portal	Add on only	Yes
Customisation	Limited – max 15	Yes
Feedback and surveys (VoC)	No	Yes
Unified Service Desk	No	Yes
Dynamics 365 for Customer Service embedded intelligence	No	Yes
Service Gamification	No	Yes
Leads (creation only)	Yes	Yes
PowerApps P2	Add on only	Yes

Changes to Portal allowance

As of 1^st October 2018, access to a free Portal for a tenant requires the purchase of a minimum of 10 Full User licenses of Dynamics 365 Customer Engagement Plan, Dynamics 365 Customer Engagement Business Applications (Sales, Customer Service, Field Service or Project Service Automation) or a combination. Team Member licenses do not contribute to this minimum. If you purchase less than 5 users and wish to have a Portal, you may purchase the Portal add on.