From the 1st October 2024, Microsoft will implement price increases for Enterprise level Dynamics 365 subscriptions. Dynamics 365 has evolved into one of the most advanced and comprehensive CRM and customer engagement platforms available. With new features added since launch, with more coming later this year, this price adjustment reflects the growing value and innovation offered by the Microsoft Dynamics 365 ecosystem.
Below is a breakdown of what the new pricing structure means for your organisation and how to best prepare for these changes.
Why Are Prices Increasing?
Microsoft regularly revises its pricing model to ensure it aligns with the value provided by its products and services. Dynamics 365 has seen significant advancements, with major investments in artificial intelligence (AI), automation, and user experience enhancements across all platforms.
These improvements have transformed Dynamics 365 from a traditional CRM/ERP solution into a comprehensive suite that powers everything from sales and marketing to customer service, finance, and supply chain management.
Here are a few key reasons driving the price increase:
- Enhanced AI Capabilities: With new AI-driven insights and tools like Copilot, Dynamics 365 offers deeper business intelligence and process automation, saving time and improving decision-making.
- Expanded Feature Set: Continuous updates have expanded the core functionality, giving businesses access to more advanced tools within the same platform.
- Stronger Security and Compliance: With tighter data protection measures and compliance features, Microsoft has made Dynamics 365 a more secure option for businesses across all industries.
How Much Will Prices Increase?
Microsoft has announced a standard price increase across most Dynamics 365 Enterprise-level subscriptions of 11% (average). Dynamics 365 Sales Professional, Dynamics 365 Business Central Essentials, Dynamics 365 Team Members and other lower-level subscriptions won’t be affected. This adjustment will apply to new and existing customers, with the increase coming into effect from 1 October 2024.
However, prices won’t increase on your existing subscriptions until their renewal date. If you’re considering taking out more subscriptions, then there may be a way for your organisation to maintain current expenditures. By taking out one or more three-year subscriptions before 1st October, you will be able to port your other subscriptions across to that plan as they renew. For more information on how this works, contact your account manager or speak to a member of our team.
What Does This Mean for Your Organisation?
If your organisation already uses Dynamics 365, it’s important to understand how the price changes will impact your budget. While the price increase may cause concern for some businesses, remember prices only increase as subscriptions renew, so you won’t pay a penny more until then.
Also, bear in mind that Dynamics 365’s growing feature set and capabilities offer more value than ever before, so you’ll be getting more bang for your buck, especially with the Wave 2 update rolling out soon. Here are a few considerations to keep in mind:
- Maximising ROI on Your Dynamics 365 Investment
Take this opportunity to evaluate how you’re currently using Dynamics 365. Ensure you are leveraging the full range of tools available. With AI enhancements and automation features, businesses can significantly streamline operations, reduce manual processes, and improve customer experiences, boosting the overall return on investment (ROI).
- Optimise Your Subscription Strategy
Review your subscription strategy to ensure you’re only paying for what you need. Many businesses are over-subscribed, so now might be a good time to assess the number of users and their specific subscription types. You might find opportunities to optimise your subscription costs by adjusting usage or consolidating subscriptions.
- Consider Long-Term Growth
As Dynamics 365 continues to evolve, its capabilities will support the growth of your organisation over time. The upcoming price increase should be viewed as an investment in a platform that is constantly innovating to help your business meet the changing demands of your industry.
Preparing for the October Deadline
To ensure a smooth transition to the new pricing model, consider taking the following steps:
- Review Existing Contracts: If you have long-term subscription agreements, check when they are due for renewal and how the price increases will affect your future payments.
- Budget for the Changes: Adjust your annual or quarterly budgets to account for the price increase from 1st October 2024.
- Engage with Your Microsoft Partner: If you work with a Microsoft partner, it’s a good time to reach out and discuss how the price changes will affect your business. They can help you navigate subscription options and ensure you’re getting the most out of your Dynamics 365 setup. Don’t leave it to the last minute to have these conversations as it can take time to process orders. Any subscriptions that aren’t fully processed before the deadline will be charged at the new price.
Looking Ahead
While price increases are rarely welcome news, Microsoft’s enhancements to Dynamics 365 are aimed at helping businesses. The integration of AI, automation, and advanced analytics is paving the way for the next generation of business operations, providing tools that were once beyond reach for many organisations.
At QGate, we’re committed to helping you navigate these changes. Our team of Dynamics 365 experts is here to help you make the most of your investment, providing support and guidance where it will deliver the most value.
To learn more about how we can help, speak to a member of the team.
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Get in touch with us today to learn more about how we help businesses like yours navigate Microsoft Dynamics 365 recovery and deployments.
