Software King of the World Microsoft is about to crank up their Dynamics 365 suite prices by an eye-watering average of 12 per cent, or a hefty £13.60 per user or device each month.
As Vole pumps in more fancy generative AI magic, it also pumps up costs.
To be fair, it has been five years since the last hike, but Microsoft’s breaking the price freeze with increases ranging from £8 to £24 (that’s 9 to 17 per cent for those counting pennies)
Volish VP Bryan Goode said it is about “helping people work smarter.” But let’s be honest, it’s also about padding those profit margins.
However, some partners agree that Microsoft’s AI changes have added value to Dynamics 365, although this makes the product a little harder to sell.
There’s no escape for those clinging to on-premises versions – they’re getting hit with the same price surge as the cloud crowd. But if you’re cosy with D365 Business Central or other unnamed offerings, breathe easy; you’re dodging the bullet this time.
Newbies and renewals from 1 October will feel the pinch, while the US will see a 10 per cent hike in 2024, followed by another bump in 2025 to match commercial rates.
Here’s the lowdown on the price jumps:
- D365 Finance, Supply Chain Management, and Commerce are soaring from £144 to £168 – a whopping 17 per cent rise.
- D365 Sales, Customer Service, and Field Service Devices will nudge up from £116 to £128, Which could significantly impact your budget if you’re a Dynamics 365 user. It gives you some time to prepare for the changes.10 per cent increase.
- D365 Sales Enterprise, Field Service, and Customer Service Enterprise will jump from £76 to £84, an 11 per cent hike.
- D365 Human Resources and Project Operations will leap from £96 to £108, up 13 per cent
- D365 Operations Device will go from £60 to £68, also up 13 per cent
- And Microsoft Relationship Sales? That’s going from £130 to £142, up by 9 per cent
In its latest earnings call, Microsoft boasted a 19 per cent year-over-year increase in Dynamics products and cloud services revenue, with Dynamics 365 revenue growing 24 per cent. They’re predicting mid-teens growth next quarter.
