The licensing model for Microsoft Dynamics is structured in a way that offers flexibility and options for organizations to choose the most suitable plan based on their specific needs. The licensing model may vary slightly depending on the product edition and whether it is for Dynamics 365 Business Applications or Dynamics 365 Finance and Operations. Below are some key points about the licensing model for Microsoft Dynamics:
User-Based Licensing: Most Microsoft Dynamics products follow a user-based licensing model, where users are assigned specific licenses that grant them access to relevant functionalities. Each user typically requires a separate license.
Named User License: Under the user-based licensing model, licenses are typically assigned to specific named users. Each named user has access to the licensed features and functionalities associated with their license.
Concurrent User Licensing: Some older versions of Dynamics 365 Finance and Operations (formerly known as Dynamics AX) offer concurrent user licensing, where a certain number of users can share a pool of licenses. However, this licensing model is becoming less common in favor of named user licensing.
Enterprise and Team Licenses: In some cases, Microsoft offers different license types, such as Enterprise licenses with more extensive features and Team licenses with more limited functionality, at a lower cost. Organizations can choose the license type that best matches their users' requirements.
Add-On Licenses: Organizations can often add additional functionalities or modules to their existing Dynamics 365 deployment through add-on licenses. This allows them to expand their capabilities without purchasing entirely new licenses.
Subscription-Based Licensing: Microsoft Dynamics licenses are typically sold on a subscription basis, where customers pay a recurring fee (monthly or annually) for each user license.
Cloud and On-Premises Licensing: For Microsoft Dynamics 365, organizations can choose between cloud-based subscriptions and on-premises licenses. Cloud-based licenses offer additional benefits, such as automatic updates and scalability.
License Enforcement: Microsoft provides various tools and mechanisms to enforce license compliance and ensure that users are appropriately licensed to use the software.