How to Save Money with Dynamics 365 Apps?

Understanding Microsoft license subscriptions can be daunting, regardless of your level of expertise. The abundance of options available can be overwhelming. It’s important to note that mostly all license subscriptions can be obtained through two primary avenues: EA (Enterprise Agreement) or Microsoft CSP (Cloud Solution Provider) agreements. In the Volume Licensing program, you have access to Office 365, Dynamics 365, and Azure, which are available through three channels: Enterprise Agreement (EA), Enterprise Agreement Subscription (EAS), and Server and Cloud Enrollment (SCE).  

This blog aims to provide an overview of these options and guide users in optimizing their licensing costs. By exploring these aspects, readers will gain valuable insights into navigating the complexities of Microsoft license subscriptions and achieving cost efficiency. 

First and subsequent application licenses: 

All Dynamics modules have a base license. This includes the Customer Engagement Suite (Sales, Field Service, Customer Service, Project Operations / Project Service Automation, and Marketing) and Financial Suite (Business Central and Finance and Supply Chain). Most applications have multiple license types like enterprise or professional for customer engagement suite. For example, users can buy a Professional or Enterprise sales license. On a tenant level, these licenses cannot be mixed and matched. If one CRM tenant is set up with a professional license, then it cannot have users with enterprise licenses.  

Dynamics 365 also has additional licenses, offering more advanced AI and features. These include Dynamics 365 Sales Premium, Viva Sales, Relationship Sales, Remote Assist, and other advanced licenses.  

Exploring the Features of Professional and Enterprise for Dynamics 365 Apps: 

Professional Edition: 

The Professional edition of Dynamics 365 is designed for small to medium-sized businesses that require a comprehensive CRM solution with essential functionalities. Here are some of the key features of the Professional edition: 

1. Sales Management: The Professional edition offers robust sales management capabilities, allowing businesses to track leads, manage opportunities, and streamline the sales process. It provides tools for managing contacts, accounts, and sales pipelines efficiently. 
2. Customer Service: With the Professional edition, organizations can deliver exceptional customer service by efficiently managing cases, tracking customer interactions, and providing self-service options. It enables businesses to resolve customer issues promptly and enhance customer satisfaction. 
3. Integration: Professional edition supports integration with other Microsoft products and services, such as Office 365 and Power Platform. This integration enables seamless collaboration and data exchange across different platforms. 

Enterprise Edition: 

The Enterprise edition of Dynamics 365 benefits targets larger organizations with more complex CRM requirements. It offers advanced features and scalability to support enterprise-level operations. Here are some of the key features of the Enterprise edition: 

1. Sales Intelligence: The Enterprise edition provides advanced sales intelligence capabilities, leveraging AI-driven insights, predictive analytics, and machine learning algorithms. It enables businesses to gain deeper customer insights, identify sales trends, and make data-driven decisions. 
2. Customer Service Optimization: With the Enterprise edition, organizations can optimize their customer service operations by leveraging advanced tools such as service level agreements (SLAs), entitlements, and AI-powered virtual agents. It allows for personalized customer interactions and efficient case resolution. 
3. Advanced Marketing Automation: The Enterprise edition offers robust marketing automation features, including advanced segmentation, customer journey orchestration, and multi-channel marketing campaigns. It empowers businesses to deliver personalized, targeted marketing experiences at scale. 
4. Field Service Management: This edition includes comprehensive field service management capabilities, enabling organizations to schedule and dispatch field technicians, manage work orders, and track service performance. It facilitates efficient field operations and enhances customer satisfaction. 
5. Unified Service Desk: The Enterprise edition provides the Unified Service Desk (USD), a powerful tool for contact center agents. USD offers a unified view of customer information, streamlines agent workflows, and enhances productivity by integrating with telephony systems and other applications. 

Understanding Pricing Structures for Professional and Enterprise 

When it comes to Dynamics 365 cost savings with Sales licensing, understanding the pricing structures is essential to make informed decisions. Both editions follow a per-user, per-month subscription model. However, additional factors can impact the overall cost of the licenses: 

1. User types and access: Depending on user roles and required functionalities, different license types may be applicable, such as Sales, Team Member, or Customer Engagement. 
2. Add-on modules: Additional modules, such as Sales Insights or Customer Voice, can enhance the CRM capabilities but may come at an extra cost. 
3. License bundles: Microsoft offers bundled packages that combine multiple Dynamics 365 applications, providing more comprehensive solutions for specific business needs. These bundles  

Exploring Subscription Options for Dynamics 365 Licensing 

• Enterprise Agreement (EA): The Enterprise Agreement is a licensing program offering flexibility and cost savings for businesses with over 500 users. It provides a predictable pricing model, annual payments, and the ability to add or remove licenses as needed. With EA, businesses can consolidate their licensing across various Microsoft products, including Dynamics 365, Office 365, and Azure. 
• Enterprise Agreement Subscription (EAS): EAS is a variation of the Enterprise Agreement that caters to businesses with smaller user counts. It offers similar benefits as EA but is designed for organizations with fewer than 500 users. EAS provides the option to pay for licenses monthly or annually, giving businesses greater flexibility in managing their licensing costs. 
• Server and Cloud Enrollment (SCE): SCE is specifically tailored for organizations with a significant investment in on-premises software and a need for cloud services. It allows businesses to license on-premises servers and cloud services under a single agreement, such as Dynamics 365, Azure, and Office 365. SCE offers cost savings and simplifies licensing management for hybrid environments. 

First and Subsequent Application Licenses:  

All Dynamics modules have a base license. This includes the Customer Engagement Suite (Sales, Field Service, Customer Service, Project Operations / Project Service Automation, and Marketing) and Financial Suite (Business Central and Finance). Most applications have multiple license types like Enterprise or Professional for customer engagement suite. For example, users can buy a professional or Enterprise sales license. On a tenant level, these licenses cannot be mixed and matched. If one CRM tenant is set up with a professional license, then it cannot have users with enterprise licenses. Please check these links for additional pricing and the difference between sales and professional licenses.    

Find out more about Dynamics 365 pricing: https://dynamics.microsoft.com/en-us/pricing/  

Within the Dynamics 365 ecosystem, additional licenses offer advanced AI capabilities and enhanced features to empower organizations further. These licenses go beyond the standard offerings and provide specialized functionalities for specific business needs. Here are some notable additional licenses in Dynamics 365: 

1. Dynamics 365 Sales Premium: This license is designed to amplify the capabilities of the sales module by providing advanced features and tools. With Dynamics 365 Sales Premium, businesses can leverage predictive analytics, sales insights, and AI-driven recommendations to enhance sales performance, optimize deal management, and drive revenue growth. 
2. Viva Sales: Viva Sales is a broad license that combines the power of Dynamics 365 Sales with Microsoft Viva, an employee experience platform. It enables organizations to create a unified and collaborative environment for their sales teams, promoting knowledge sharing, employee engagement, and streamlined communication. Viva Sales empowers sales professionals with intelligent insights, personalized coaching, and seamless integration with Microsoft Teams. 
3. Relationship Sales: This license focuses on building and nurturing customer relationships through effective relationship management. Relationship Sales leverage AI-driven insights, social selling tools, and intelligent sales processes to help sales teams deepen customer connections, drive engagement, and foster long-term loyalty. With this license, businesses can gain a competitive edge by creating meaningful customer interactions and delivering personalized experiences. 
4. Remote Assist: Remote Assist is a specialized license that enables remote collaboration and assistance for field service and support scenarios. It leverages augmented reality (AR) technology to connect remote experts with on-site technicians, allowing them to collaborate in real time, share visual information, and resolve complex issues efficiently. Remote Assist improves service delivery, reduces downtime, and enhances customer satisfaction. 
5. Other Advanced Licenses: Dynamics 365 offers a range of additional advanced licenses tailored to specific industry needs or specialized functionalities. These licenses may include features such as advanced analytics, customized applications, industry-specific modules, or integrations with other Microsoft products. 

These additional licenses allow organizations to choose the correct set of capabilities to meet their unique requirements.  

Further Reading: Hidden Costs In CRM: Navigating Dynamics 365 

The Difference Between Professional and Enterprise for Dynamics 365 Sales 

Dynamics 365 Sales offers two distinct versions: Professional and Enterprise. While they share a common goal of enhancing sales processes and improving customer relationships, there are notable differences between them. Let’s explore these disparities in detail. 

• Target Audience: Small Businesses vs. Large Enterpris

The first significant difference lies in the target audience for each edition. Dynamics 365 Sales Professional is designed primarily for small to medium-sized businesses, offering a comprehensive, more affordable CRM solution. On the other hand, Dynamics 365 Sales Enterprise caters to the needs of large enterprises, providing robust features and scalability to accommodate complex sales operations. 

• Feature Set: Comprehensive vs. Advanced 

Both Professional and Enterprise versions offer a range of features to streamline sales activities. However, Enterprise takes it a step further by providing advanced functionalities to meet the detailed requirements of enterprise-level organizations. These advanced features include: 

• AI-driven sales insights and forecasting 
• Advanced sales process automation 
• Enhanced customization options for complex workflows 
• The hierarchical security model for greater control over data access 

• Scalability and Customizability: Meeting Evolving Needs 

Scalability and customizability are crucial aspects to consider when selecting a CRM solution. While both versions offer some scalability, Dynamics 365 Sales Enterprise excels. It provides greater flexibility to accommodate growing businesses, complex sales processes, and evolving requirements. The Enterprise version also offers extensive customization options, allowing organizations to tailor the CRM system to their needs. 

• Integration Capabilities: Extending the CRM Ecosystem 

Integration with other business applications is essential for seamless operations and data management. Dynamics 365 Sales Professional and Enterprise offer integration capabilities with various Microsoft and third-party applications. However, Enterprise provides deeper integration options and supports more advanced integrations, enabling organizations to create a comprehensive CRM ecosystem that aligns with their existing software infrastructure. 

• Support and Service Level Agreements (SLAs): Meeting Business Expectations 

Regarding supporting and service level agreements, Dynamics 365 Sales Enterprise provides more extensive coverage than the Professional edition. Enterprise customers can usually access faster response times, dedicated support channels, and priority assistance for critical issues. This heightened level of support is crucial for large enterprises that heavily rely on their CRM system for day-to-day operations. 

Subsequent Application Licenses: 

1. Qualifying Application License: Subsequent qualifying application licenses are applicable for users already licensed for the base application. For example, suppose a user has a Sales Enterprise license and requires access to other applications like Field Service or Customer Service. In that case, they can be provided access via a subsequent qualifying application license. These licenses are available at a fraction of the cost of the base license, allowing users to access additional modules without incurring significant expenses. 

Module-Specific Considerations: 

1. Dynamics Marketing: The Marketing module provides tenant-level access. Once Dynamics Marketing is configured, all users can access the marketing module without requiring additional licenses, ensuring broad access to marketing capabilities within the organization. 
2. Project Service Automation (PSA): PSA is no longer available as a standalone license and has been replaced by Project Operations, which requires a Dynamics Finance license. Users with the Customer Engagement Suite can upgrade to a Sales Premium license and then add the Project Operations add-on, providing a cost-effective approach compared to acquiring a separate Project Operations license. 
3. Dynamics Business Central: Dynamics Business Central offers an attach option. The subsequent application license discount applies only to professional sales and customer service licenses with a Business Central license, allowing businesses to optimize costs when integrating Business Central with other modules. 

Pre-Requisite License Requirements 

Certain licenses can only be purchased if specific pre-requisite licenses are provisioned. These requirements ensure the necessary foundational licenses are in place before adding additional capabilities. Purchases of the following Licenses also require the purchase of a Pre-requisite License listed in the table below:  

License	License Prerequisites (Base License only)
Dynamics 365 Team Members	Dynamics 365 user SLs other than the Team Members SL
Dynamics 365 Marketing Attach*	10 or more seats of ONE the following: - Dynamics 365 Customer Service Enterprise - Dynamics 365 Customer Service Professional - Dynamics 365 Sales Enterprise - Dynamics 365 Sales Premium - Dynamics 365 Sales Professional - Dynamics 365 Field Service - Dynamics 365 Finance - Dynamics 365 Supply Chain Management - Dynamics 365 Commerce - Microsoft Relationship Sales
Dynamics 365 Sales Insights	- Dynamics 365 Sales Enterprise, or - Dynamics 365 Sales Premium, or - Microsoft Relationship Sales
Dynamics 365 Conversation Intelligence	Dynamics 365 Sales Insights
Dynamics 365 Customer Insights Attach	Dynamics 365 Marketing, or 20 or more seats of ONE of the following: - Dynamics 365 Sales Enterprise - Dynamics 365 Sales Premium - Dynamics 365 Customer Service Enterprise - Microsoft Relationship Sales
Chat for Dynamics 365	Dynamics 365 Customer Service Enterprise
Dynamics 365 Intelligent Order Management User SL	Dynamics 365 Intelligent Order Management
Dynamics 365 Customer Service Messaging	Dynamics 365 Customer Service Enterprise
- Sensor Data Intelligence Scenario Add-in for Dynamics 365 Supply Chain Management - Cloud Scale Unit Add-in for Dynamics 365 Supply Chain Management - Edge Scale Unit Add-in for Dynamics 365 Supply Chain Management	Dynamics 365 Supply Chain Management
- Dynamics 365 e-Commerce Tier - Dynamics 365 Commerce Scale Unit - Cloud - Dynamics 365 Commerce Recommendations - Dynamics 365 Commerce Ratings and Reviews	Dynamics 365 Commerce

*Users with less than ten seats of the Prerequisites or are new to Dynamics may purchase the Marketing (Standalone) application 

Dynamics 365 ROI: A Microsoft Success Story 

Dynamics 365 is a set of business applications developed by Microsoft, and many organizations worldwide have adopted these tools to drive transformation in their businesses. 

One notable success story involves the Italian company Campari Group. 

Campari Group’s Dynamics 365 ROI Success Story 

Background: Campari Group, the famous producer of alcoholic beverages, wanted to enhance its sales and distribution processes, which were crucial to their growth strategy. They needed a unified system that would integrate various business units, allow for better communication and data-sharing, and ultimately streamline operations. 

Solution: Campari chose to implement Dynamics 365 for Finance and Operations as a part of their digital transformation initiative. This integrated approach provided the company with a unified view of its operations. 

Outcomes: 

• Streamlined Processes: The company’s end-to-end processes were optimized, and as a result, they saw increased operational efficiency. 
• Enhanced Decision Making: The unified platform provided insights into sales, inventory, and finance, enabling Campari to make more informed decisions. 
• Increased Agility: The modular and scalable nature of Dynamics 365 allowed Campari to adapt quickly to the changing business environment. 
• Improved Customer Experience: With better access to data and insights, Campari was able to enhance its customer experience, ensuring that they remained at the forefront of the beverages industry. 

Dynamics 365 ROI Realized: While exact ROI figures are proprietary, it’s clear that Campari Group saw significant returns on their investment in Dynamics 365. Not only did they achieve operational excellence, but they were also better positioned to tackle future challenges, ensuring their continued growth and success. 

Read the complete story: Campari Group personalizes customer experiences and builds brand awareness with Dynamics 365 

AlphaBOLD Your Dynamics 365 integration Partner  

AlphaBOLD’s portfolio boasts success stories from diverse industries, testament to their versatility and expertise. From retail and manufacturing to healthcare and finance, they have a proven track record of driving transformation through Dynamics 365. 

Why Choose AlphaBOLD? 

• Experience and Expertise: With a deep understanding of both Dynamics 365 and industry-specific challenges, AlphaBOLD’s team is uniquely positioned to tailor solutions to your business needs. 
• End-to-End Solutions: Beyond mere integration, AlphaBOLD ensures that the entirety of Dynamics 365’s capabilities are leveraged, from sales and customer service to finance and operations. 
• Continuous Support: Implementing a system is just the beginning. AlphaBOLD remains a steadfast partner, providing post-deployment support and ensuring that Dynamics 365 evolves alongside your business. 
• Innovative Approach: Recognizing that no two businesses are the same, AlphaBOLD prides itself on its innovative approach. They take the time to understand your unique challenges and goals, ensuring a customized Dynamics 365 solution. 
• Knowledge Transfer: AlphaBOLD believes in empowering their clients. Not only do they implement solutions, but they also ensure that your team is trained and well-equipped to harness the full power of Dynamics 365

Conclusion: 

Microsoft licensing has many options, and it can get complicated. This blog was kept short and specific to certain scenarios on purpose. If you have additional questions on licenses, please get in touch with us, and we will be more than happy to help with the best licensing option for your scenario.