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Demystifying Dynamics 365 CRM Licensing

Published: 8 November 2023

Microsoft Dynamics 365 CRM is a robust tool for managing customer relationships and driving business growth. However, understanding Dynamics 365 CRM licensing can be difficult due to its many features and licensing options. We’ve done the hard work for you and have provided a comprehensive guide to help you understand and choose the right licensing for your CRM needs.

Understanding Dynamics 365 CRM Licensing

In order to access the fundamental Dynamics 365 business applications, clients can procure subscriptions for either Base or Attach licenses. The initial license to obtain is the base license, which should have the highest cost among the full user licenses for a specific business application. If a user needs functionality from more than one core Dynamics 365 business application, they can purchase Attach licenses on top of their primary Base license to obtain the necessary permissions and operate across multiple business applications or functions. These Dynamics 365 Attach licenses are available at significantly discounted rates and are suitable for various business scenarios and employee roles.

To recap:

  • Start by purchasing a Dynamics 365 Base license at the standard price.
  • Subsequently, additional Dynamics 365 Attach licenses can be acquired for different applications at a reduced price.

Understanding Dynamics 365 Attach licenses and their requirements?

Once you have your Base licence, you can then start looking at Attach licenses. You can have more than one Attach license and the following are available for attachment:

  • Dynamics 365 Sales Enterprise
  • Dynamics 365 Sales Professional
  • Dynamics 365 Customer Service Enterprise
  • Dynamics 365 Customer Service Professional
  • Dynamics 365 Field Service

However, there are certain caveats to having an Attachment license. Firstly, you must have a valid Base license and each user is limited to possessing a single primary Dynamics 365 license. The assignment of additional licenses (Attachments) by administrators is contingent upon the user already holding a valid primary license. You can’t use different types of licenses together in the same Dynamics environment. For instance, if you pick a Professional license as the main one, you can’t attach an Enterprise or Field Service license to it. This means that if you have one user that needs any of the Enterprise features, you need to buy all Enterprise level licensing. Finally, in cases where multiple applications are being procured, the primary license must be the highest priced one.

Tips for Choosing the Right CRM License

  • Assess CRM Requirements: Understand your organisation’s CRM requirements and the functionalities needed for effective customer engagement.
  • Evaluate CRM User Roles: Identify CRM user roles and match them with appropriate CRM license types to ensure cost-effectiveness.
  • Consider CRM Growth: Choose a CRM licensing model that allows for scalability as your CRM needs grow and evolve.
  • Regular CRM License Review: Periodically review your CRM licensing to ensure it aligns with your organisation’s evolving CRM strategies and customer engagement goals.

Are there other options?

As an alternative to Dynamics 365 CRM, you could make use of Power Apps Plans. These apps can harness numerous basic Dynamics entities and offer limitless custom entities support. They’re equipped with the same user-friendly, responsive model-driven app interface as Dynamics, ensuring secure data storage in basic Microsoft Dataverse, thus facilitating seamless data and process integration across your organisation. With Power Apps Plans, you get usage rights for a single app or grant individual users access to unlimited apps with a user plan.

Summary

Licensing is a complicated and confusing part of buying technology, there are so many options available to you. Understanding Dynamics 365 CRM licensing is vital in helping you reach its potential. Our guide can help you to understand what you need from CRM. This understanding is key to aligning CRM features with goals and making informed licensing choices for business success. Consulting experts can further optimise CRM licensing for your organisation.

 

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