Dynamics 365 Has Launched! What You Need to Know about Licensing and More

As of November 1, 2016, Microsoft has officially launched Dynamics 365. This new product combines the best of Microsoft Dynamics CRM and Microsoft’s cloud-based enterprise resource planning software into a single business intelligence platform that delivers purpose-built apps for the typical business unit functions at most organizations. If that sounds like a lot of change to digest, you’re absolutely right. So in today’s blog, we’re going to help by clarifying Dynamics 365’s licensing model.

Want to dive deeper? Review IOTAP’s technical blog series on Dynamics 365 at the link below:

What are Dynamics 365 Editions Available? 

  • Enterprise edition: (Available November 1, 2016) designed for organizations with 250+ employees that are already using Dynamics CRM online and AX
  • Business edition: (available mid-2017) designed for small and medium-sized businesses. This edition will launch with apps that support financials and bookkeeping.

The New Dynamics 365 Licensing Model – Users, Plans, and Teams 

Microsoft has tweaked it is Dynamics 365 licensing plans to better fit the way businesses and teams actually use the software. Here’s how:

User Types

  • Dynamics 365 licenses can now be purchased for individual users OR devices
  • Individual users have two license tiers:
  • Full Users are those who will be interacting with the full version of Dynamics 365 every day. Think of your customer service, sales, or finance teams. (Current Microsoft Dynamics CRM customers may have called these licenses “Professional” subscribers in the past)
  • These individuals will be licensed under either a Dynamics 365 App or a Plan license
  • Light Users are those who only need to accomplish a single task, like enter data or access a report.
  • These individuals will have their licenses covered under a Dynamics 365 for Team Members subscription.
  • Device licenses will be tied to a particular device and be useful for shared-device environments

liberating customers from traditional business

Dynamics 365: The Difference Between Apps and Plans 

Full Users can be licensed in two ways:

  • For specific apps: this Dynamics 365 licensing model is ideal for specialized employees who only work in one area (e.g. bookkeeping, social media, etc.), as it removes any extraneous functionality from the user and keeps things simple.
  • Via Plans (pre-packaged groups of apps): this licensing model is a good fit for individuals who work across functions and need access to a number of different apps on a regular basis.

Here’s a list of all the plans that will eventually be available with Dynamics 365:


And let’s not forget to address a few of the other common Dynamics 365 questions we’ve received: 

Do I Need a Server for Dynamics 365?  

Not if you don’t want to be on the premise. Dynamics 365 licensing is flexible and supports both cloud and on-prem usage. If you are currently using Dynamics CRM Online or Dynamics AX, contact IOTAP to review your options.

Will my Dynamics CRM installation still be supported? 

Yes. IOTAP and Microsoft will continue to support existing Dynamics CRM installations for the foreseeable future, with planned Dynamics CRM functionality improvements still scheduled for at least the next 2 years.

What does all this mean? If your business depends on data-driven intelligence, Dynamics 365 is an incredible tool worth investigating. And if you’re already using Microsoft Dynamics CRM, there’s lots of change coming that can benefit you. At IOTAP, we’re here to help you through the Dynamics 365 transition. Please contact us at [email protected] for more information or to help answer any questions related to Dynamics 365.