Dynamics 365 Price Increases Announced by Microsoft: What You Need to Know

In April, Microsoft announced the first price increase for Dynamics 365 products in five years. Although this change has been revealed, it will not take effect until 1st October 2024, giving businesses ample time to prepare.

If you currently have Dynamics 365 licensing or are considering adopting a Dynamics 365 solution for your business, you might be wondering how this impacts you. We delve into the announcement in more detail, including the extent of the price increases, the reasons behind them, and the steps you should take now.

What Are the Price Increases?

The price increases will affect various Dynamics 365 products, with each product experiencing different increase rates. The hikes range from 9.26% to 16.67%.

The table below outlines the changes in prices across the Dynamics 365 suite. Note that these prices have not yet been announced in GBP by Microsoft, but similar increases are expected

It's important to mention that Business Central will not experience a price increase, nor will products outside the Dynamics 365 suite.

Why Are These Price Increases Happening Now?

These are the first price increases for Dynamics 365 prices in five years, a period during which the world has undergone significant changes, presenting new challenges for businesses.

Over these five years, Microsoft has significantly enhanced their products, adding new functionalities and value for users.

By increasing prices from October, Microsoft aims to continue investing in research and development for Dynamics 365. This investment will support the integration of advanced innovations, cutting-edge technology, and AI capabilities.

Microsoft will continue to provide twice-yearly updates across Dynamics 365 products, ensuring users benefit from improved functionality regularly. Consequently, users will be equipped with the best tools to navigate the increasingly digital world and address evolving challenges and opportunities in the marketplace.

What Does It Mean for Dynamics 365 Customers?

The price increases will apply globally to new and existing customers from 1st October 2024. If you already have a Dynamics 365 subscription, the price increase will only take effect at your next renewal date.

If you start your subscription before October 2024, you can secure it at the current price until your next renewal.

Everything else about Dynamics 365 remains unchanged. You will continue to receive the same service, product, functionality, and access to twice-yearly updates.

Lock in Dynamics 365 Prices Now

If you have been considering a Dynamics 365 solution and services but have not yet committed, now is the time. By deploying your Dynamics 365 solution now, you can lock in the current prices for up to three years.

As one of the largest Dynamics partners in the UK, Dynamics Stream UK can support you in designing, customizing, and deploying a Dynamics 365 solution tailored to your business needs.

We can also help you identify the best products and licenses to achieve your goals.