Part 1. Main Licensing Channels Explained – for those Considering a Move to Dynamics 365
For those considering moving to Microsoft Dynamics 365, this post summarises the two main licensing channels and the differences between them.
Companies can purchase Dynamics 365 licenses through two main channels: by making a direct agreement with Microsoft or through authorised Microsoft Partners – called CSP Partners (Cloud Solution Providers).
1. Microsoft Enterprise Agreement
The Microsoft Enterprise Agreement is a direct license agreement between Microsoft and organisations.
It is designed for those who are planning to make a significant investment in Dynamics 365 and the number of licences required, and typically lasts between 3 to 5 years.
For some companies, this option can be too rigid as the agreement term and number of licences is fixed and cannot be reduced, with the billing frequency strictly annual.
As such, typically large organisations will pursue this option and make a direct agreement with Microsoft.
One positive aspect of making such a commitment is that companies can seek to negotiate a licensing discount with Microsoft.
2. Cloud Solution Provider (CSP)
Cloud Solution Providers can also license Dynamics 365. This channel typically applies to mid-size and smaller companies, and the deals are more flexible than the Enterprise Agreement.
Companies can reduce the number of licenses initially purchased, monthly or annually, depending on their commitment, but the price is typically 20% higher for monthly commitments.
Determining the most appropriate channel for you
Determining the optimum number and type of licences and the most appropriate licensing channel can sometimes be complex: getting it wrong can have cost implications. Speaking to an approved Microsoft CSP Partner will help you define what is the best overall option for your organisation.
Dynamo is a trusted Microsoft Partner that can help you determine the number and type of licenses your organisation needs to most effectively – and cost-efficiently – optimise the usage and benefits of Dynamics 365. Contact us for a no obligation quotation – we will be delighted to assist.
In Licensing Part 2, we will explain the different types of licenses. (Subscribe here to ensure you receive a copy directly)