Change in Dynamics 365 Business Central on-premises licensing and pricing
Microsoft announced changes to the availability and pricing of some on-premises products in early April 2023. These changes are a further indication of the increasing cloud focus and the enhancement of the subscription licensing model. Below we provide a detailed overview of the changes.
The changes to Business Central on-premises licensing and pricing have two cut-off dates: 1 October 2023 and 1 April 2025. What does this mean for you?
Change of on-premises pricing
In addition to the cloud pricing adjustments on 1 April 2023, there will be the following pricing adjustments from 1 October 2023:
- 11% price adjustment for Dynamics 365 Business Central On-Premises Purchase Licences.
- 10% price adjustment for Dynamics 365 Business Central on-premises subscription licences (rental licences)
- 14% Price adjustment for Dynamics NAV Subscription Licences (rental licences)
- Adjustment of the rate for Enhancement Plans from 17% to 18% (for existing customers from Renewal Date)
- Successive reduction of the existing customer discount for subscription licences (in the first step to 10%), which run at a reduced rate with the addition of “on-Azure
Change of on-premises licensing
It will no longer be possible for new customers to purchase Dynamics 365 Business Central On-Premises perpetual licences (purchase licences) from 1 April 2025. However, it does not mean that the Dynamics 365 Business Central on-premises deployment will be discontinued altogether. Only the purchase-by-purchase will be discontinued in two years for new customers. Dynamics 365 Business Central On-Premises Subscription Licences (rental licences) will continue to be available, so subscriptions to Dynamics 365 Business Central On-Premises will remain. Licensing will also continue for existing customers with active enhancement plans.
What is the next step?
Microsoft has been focusing on the cloud-first strategy for some time, and these changes reinforce that focus. On-premises licensing will remain (for now). Only the purchase option will be discontinued in two years. We recommend interested or new customers to go directly into the cloud version of Dynamics 365 Business Central. Existing customers should at least consider a cloud migration in the long term. We also recommend the Microsoft promotion Bridge to the Cloud 2, which offers an inexpensive opportunity to try out the Business Central Cloud. We would be happy to advise you individually, contact our experts now.
Do you have questions about your licences and the price adjustments mentioned? Our team will be happy to advise you.
