Microsoft announced the launch of Dynamics 365 a few days before WPC and launched Dynamics 365 SKUs on Nov 1st 2016. In this blog I have summarised what I see as the impact to existing Dynamics customers and partners. I have also tried to outline what our Dynamics partners need to do with the launch of Dynamics 365.
In summary, there will be 2 editions of Dynamics 365 available, these are:
1. Dynamics 365 Enterprise Edition
• Comprises of CRM Online and AX
• Online / On premises dual use right
• Available through: EA, MPSA, CSP and MOSP (CRMOL only)
• Optimized for 250+ employees
• Available from Nov 1st
2. Dynamics 365 Business Edition
• Includes Financial apps from NAV
• Sales and Marketing app coming in US Spring 2017
• Cloud only
• 300 seats maximum
• Only available in US and Canada now.
The biggest change to Dynamics 365 is how the applications are licensed. If you need CRM, you just purchase the Sales app. If you need to provide customer support, you buy the Customer Service app. If you need more than 1 feature, you pay US$20 to purchase a plan instead. If you are a light user who only needs light access, buy a team member licenses.
The Dynamics 365 Enterprise Edition is now available (since Nov 1st 2016 onwards), while the Financial app is the only SKU available in US and Canada from Dynamics 365 Business edition on Nov 1st 2016. Other Dynamics 365 Business apps will only be coming in Spring 2017.
So how does Dynamics 365 Enterprise Edition impact existing/new AX and CRM Online customers?
With Dynamics 365, the existing/new AX customers will be able to purchase additional feature such as Sales app, Field Service app and Power app by upgrading to Enterprise Plan 2 at US$20 more. Existing task users can also purchase team members’ licenses at a lower price.
The launch of Dynamics 365 will have a bigger impact on CRM online customers. The price has gone up, but the new licensing model of Dynamics 365 will enable customers to add features such as PowerApp by only paying a small price to upgrade to Enterprise Edition plan 1, or even plan 2. More details can be found below.
The following are the different aspects of how the launch of Dynamics 365 Enterprise edition will impact existing or new CRM Online customers:
1. New Dynamics 365 SKU
• Existing Dynamics AX7 and CRM online SKUs will be retired. New customers must purchase Dynamics 365 SKUs from Nov 1st 2016 onwards.
• CRM online will be broken down into Sales, Field Service, Customer Service and Project service Automation and Marketing (coming soon) apps. Price of each app is US$95/user/month, compared to US$65/user/month for CRM Online Professional edition today.
• If customers need more than Sales app functionality, they can choose to purchase Enterprise Plan 1, which costs US$115/user/month and have access all CRM functionalities. There is also waterfall pricing available, which allows customers with more than 100 Enterprise Edition Plan 1 users to get Enterprise Edition Plan 1 at US$90. Further discount with additional Enterprise Edition Plan 1 seats. Waterfall pricing also applies to team member apps
• The Operations app, which is the renamed Dynamics AX7, costs $190. Customer can also get Plan 2 at $210, which allows Operations customers to purchase Sales and other CRM Online apps at mere US$20 more. There is no waterfall pricing for Enterprise Edition Plan 2.
• Existing CRM Online can customers can get Dynamics 365 transition pricing with 20% (Sales app) or up to 50% (Enterprise plan) discount on renewal
3. New Team member’s apps and retirement of CRM Online Basic and Essential USLs
• Existing CRM Online basic, essential will be retired. Upon renewal, existing customers can either choose to upgrade to Sales app, enterprise edition plan 1 with transition pricing, or choose to purchase team members licenses instead.
4. Existing Open customers to transition to Sales app in MOSP, CSP, MPSA or EA on renewal
• Dynamics 365 is not available through Open program, existing CRM Online customers are to transition to Sales app in EA, MPSA, MOSP or CSP.
• Therefore, SMB customers with less than 250 seats renew their CRM Online licenses through MOSP or CSP only.
5. Retirement of Dynamics Marketing
• Microsoft Dynamics Marketing will be retired and will no longer be available for ordering from Nov 1st onwards.
Dynamics 365 SMB promo available only through CSP
As the Dynamics 365 Business Edition targeted at SMB customers is not available until Spring next year, Microsoft are offering a US$40/user/month Promo (58% discount) for SMB customers who purchase Dynamics 365 Enterprise Edition Sales app before the Dynamics 365 Business Edition Sales app launch.
This promo is available only through CSP for SMB customers. Customers can purchase no greater than 25 Sales app seats.
With Dynamics 365 Business Edition and SMB Sales App promo only available through CSP, sign up to be a rhipe CSP reseller to partner with rhipe for CSP or email email@example.com if you have more questions.
By Jye Yau Wong, Partner Enablement Specialist (CSP), rhipe