Microsoft Dynamics Cost: New Pricing Scheme May Impact Renewing Customers

Organizations with more than 100 users may face increased costs despite using only one application, according to Microsoft customers and a review of their contracts. This change is expected to substantially impact renewing customers.

Microsoft claims that 80% of its customers use only one application, but anecdotal evidence suggests otherwise. The new individual pricing scheme, which will take effect in October, may lead to significant increases for midsize and larger organizations using multiple applications.

The company has introduced a 'attach pricing' plan, which allows users to add or remove applications as their businesses grow and change over time. Under this plan, the cost is $95 per user/month for one app, with an additional $20 fee for each extra app. The five core applications included in the plan are Sales, Customer Service, Field Service, Project Service Automation, and Marketing.

Currently, cloud apps come priced as bundles, with many companies paying $115 per user/month on a Customer Engagement Plan. However, Microsoft's decision to unbundle Dynamics 365 apps and sell them à la carte may lead to increased costs for organizations using multiple applications.

Alysa Taylor, corporate vice president for business applications at Microsoft, explained in a blog post that customers prefer the flexibility of adding or removing applications as their businesses evolve. The company has given partners advance notice of the new pricing scheme, which was announced at the Inspire conference in Las Vegas last week.

Microsoft's new pricing scheme is expected to have a significant impact on renewing customers, with some facing increases of up to 158%. As Ianni said, 'I feel that a majority of renewing customers are going to be substantially impacted by this change.

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