Microsoft Dynamics 365: The Next Generation of Cloud Based Business Apps

By - November 17, 2016

Microsoft has officially released the Dynamics 365 Suite as of November 1, 2016 and it’s creating a significant amount of interest among current and potential customers.  There are three major changes I want to highlight that have occurred as part of this transition .

  • ERP Applications
  • Common Data Model
  • Licensing Structure

Dynamics 365 ERP Applications

Along with the Dynamics CRM functionality that has been available on the hosted platform for quite some time, Microsoft has now added ERP functionality with the introduction of Dynamics 365.  You now have the option of two different ERP selections based on the Dynamics 365 Edition you select.

  • Dynamics AX Online (Enterprise Edition Only)
  • Dynamics 365 Financials for Business (Business Edition Only)

Dynamics AX Online offers a solution for the medium to large businesses that need ERP functionality, with the ability to expand as the organization continues to grow.

Dynamics 365 Financials for Business is designed for the Small to Medium sized businesses which need a lightweight ERP solution to help manage day to day operations.

Common Data Model

One of the major benefits of the Dynamics 365 platform is the introduction of a Common Data Model or CDM.  In short, this will reduce the need for integration or custom development to have your sales/customer service application talk to your ERP system.  This can be a significant cost savings to any organization that wants to integrate both front and back office applications.

Power BI now plays a huge role in this transition because you can essentially do cross-system reporting out of the box for the standard entities that are available in the CDM.  There will also be an add-in for Microsoft Excel so you can leverage any data available in the CDM directly from Excel.

Licensing Structure

The new licensing structure can get a little confusing so I want to try and summarize the overall design.

There are two version of Dynamics 365 available, Enterprise Edition and Business Edition.

Enterprise Edition

  • Price ranges from $4-$210 per User / Month
  • You can purchase a Plan that contains multiple applications at a reduced cost or just buy individual apps based on your needs
  • There are light licenses (Similar to the previous Essentials License) for users that need minimal access and range from $4 – $10 per User / Month

Business Edition

Price ranges from $5 – $40 per User / Month

  • Currently only one Plan is available
  • Dynamics 365 for Financials is the only ERP option at this level
  • The light user licenses are $5 per User / Month

Looking to deploy Microsoft Dynamics 365 or upgrade to Dynamics 365? RSM US LLP offers a full range of services from implementation and optimization to development and support to help guide you through a successful upgrade. Contact our professionals for more information on our services at 855.437.7202 or  Or visit us on the web to learn more about Microsoft Dynamics 365.

by John Annunziato for RSM


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