The Transition from Microsoft Dynamics CRM to Dynamics 365 – Branding and Pricing Changes

By Ryan Plourde posted 10-27-2016 07:17 PM

  

There is a change coming for current users of Microsoft Dynamics CRM. Not a bad change, but change is never easy.

As of November 1, 2016 Microsoft Dynamics CRM will be part of Microsoft Dynamics 365 Enterprise Edition. Microsoft Dynamics 365 is designed to bring together Microsoft’s CRM and ERP offerings and runs in Microsoft Azure.

The first big change is that the Microsoft Dynamics CRM brand name is going away, effective November 1, 2016. The various elements of CRM – Sales, Marketing and Service – will be incorporated into Dynamics 365 in differing configurations and on different timelines. Effective November 1, there will be no way for new CRM customers to purchase CRMOL except as part of Dynamics 365.

At first all existing customers on CRM Online (CRMOL) would need to transition to Dynamics 365 when their subscription renewals were due. Now Microsoft just extended the renewal deadline to give users more time to deal with this change. "All existing CRM Online customers in Direct and CSP will be allowed to auto-renew in to their existing CRM Online subscriptions until February 1, 2017. "

Similarly, the upcoming release of CRM On-Premises will be referred to as Dynamics 365 On-Premises.

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Dynamics 365 includes two editions. Microsoft Dynamics 365 Business Edition is optimized for 10-250 employees and will include “cloud only” financials. Sales and Marketing will be part of the Dynamics 365 Business Edition offering, but not until Spring 2017. The third leg of the CRM stool, Customer Service, will also be included later.

Microsoft Dynamics 365 Enterprise Edition is optimized for companies with more than 250 employees. This is also scheduled for release this month (October 2016) and will essentially be comprised of “Dynamics AX and Dynamics CRM/OL” with both “Online / On Premises dual use rights.”

The second big change is the pricing model for Microsoft Dynamics 365.

CRM Pricing in Dynamics 365

In the Business Edition of Dynamics 365 each module, Sales, Marketing and Customer Service (when they are available) will be priced separately at $40 per user per month. Or you can pay just $10 more, at $50 per month to get access to everything - including Financials. And light users (read only users) are just $5 per month and can access all modules.

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In the Enterprise Edition of Dynamics 365, you can also buy the modules a la carte or purchase a plan. Each module (Sales, Field Service, Customer Service, PSA etc…) is $95 per user per month. Or you can pay just $20 more, $115 per user per month, to give that use access to all this functionality. Plan 2 includes Operations (which is ERP functionality of Microsoft Dynamics AX) for $210 per user per month. (Or you can get Microsoft Dynamics 365 for Operations as a stand alone at $190 per user per month). The Marketing has yet to be priced.

Again, there are team member licenses that start at $10 per user per month and have read only rights to all functions.

In the Enterprise edition there is also waterfall pricing in some plans (note the stairstep type symbol in the image below). This means the more users you have, the less expensive it is.

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In Conclusion

With releases on Dynamics 365 coming out this month (October 2016), there still appear to be some unanswered questions and details to be announced. It’s possible that some of the CRM functionality that does not appear to be included will be available through the new marketplace, which is called AppSource.

Microsoft has made it very clear that there are significant discounts (up to 40%) that will be available for customers transitioning from Microsoft Dynamics CRM to Dynamics 365 at the end of their contract. This discount will be available to anyone who renews within the next 3 years. (Hint: Anything that you purchase and add to your Dynamics CRM contract before November 1, 2016 is eligible for this discount. So if you need to add users or functionality, now is the time to do it).

We are confident that all of our Microsoft Dynamics CRM clients will get more value from Microsoft Dynamics 365. And we will be your resource to guide you smoothly through the transition.

By AbleBridge, now a Crowe Horwath company, www.AbleBridge.com

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