What is Microsoft Dynamics 365?

This blog article explains what Microsoft Dynamics 365 (D365) is, what apps it includes, how much it costs, how it can help your business and facilitate your and your team’s work.

What is D365?
D365 is an umbrella name for a line of Microsoft software products. It includes the following apps (on the date on this post was written):
      ▪ Artificial Intelligence;
      ▪ Business Central (former Microsoft Dynamics NAV);
      ▪ Commerce;
      ▪ Customer Service;
      ▪ Field Service;
      ▪ Finance (former Microsoft Dynamics 365 for Finance and Operations; former Microsoft Dynamics AX);
      ▪ Marketing;
      ▪ Mixed Reality;
      ▪ Project Service Automation;
      ▪ Retail;
      ▪ Supply Chain Management (former Microsoft Dynamics 365 for Finance and Operations; former Microsoft Dynamics AX);
      ▪ Sales (former Microsoft Dynamics CRM);
      ▪ Talent.

In the heart of D365 can be said to lie two types of software: ERP (enterprise resource planning) and CRM (client relationship management). These are the programs that help companies maintain their financial (including financial reporting and issuance of externally facing documents such as sales invoices and computer cheques), inventory, manufacturing, fixed (capital) assets, client base (e.g. contact information, email and campaigns, etc.).

Microsoft has combined based ERP and CRM functions with different features, such as AI (artificial intelligence) to help satisfy the needs of some businesses more fully.

It is worth noting that the apps above may be self-exclusive rather than complementing each other. For example, both Business Central and Finance are both ERP systems and, therefore, a company should only need either and is unlikely to need both.

Licensing & Pricing
Microsoft has different licenses for different apps the price also varies depending on the app and other factors. Price guidelines are regularly issued by Microsoft. These are typically quite complex documents that require a specialist, an official Microsoft Partner (such as Edocation) to clarify the details.

This post focuses on the license guidelines for the ERP products of D365BC and in particular on the Cloud (SaaS – software as a service) version of the these apps based on the date on this post was written:
      ▪ Business Central:
           ✓ Essentials = $89.60 CAD per User / month- this license is, perhaps, most frequently used and allows using all Modules except Manufacturing and Service Management.
           ✓ Premium = $128.00 CAD per User / month – this license allows using all Modules, including Manufacturing and Service Management. Currently, it is impossible to mix Essentials and Premium licenses – all Users must be either on Essentials or on Premium licenses.
           ✓ Team Member = $10.20 CAD per User / month – this license, roughly, allows read all things (and create some), but not to post (e.g. a Sales Invoice) documents – it is often used by field workers to initiate a PO process and by managers who only need to run financial reports (e.g. BS, IS, Trial Balance, etc.). Team Member license can be combined with either Essentials or Premium licenses.

      ▪ Finance:
           ✓ Full – $230.40 CAD per 1st User / month – the subsequent licenses for qualified Users (typically, the 1st license should be of the equal or higher value) cost less.
           ✓ Team Member – $10.20 CAD per User / month.

      ▪ Supply Chain Management:
           ✓ Full – $230.40 CAD per 1st User / month – the subsequent licenses for qualified Users (typically, the 1st license should be of the equal or higher value) cost less.
           ✓ Team Member – $10.20 CAD per User / month.

Importantly, a license can be per Named User (i.e. a User must sign in with her/his credentials – usually Office 365 email and the password) or per Device (i.e. multiple Users can use the same device – e.g. a computer in a warehouse to clock in/out).

Licensing can be quite complex, but it can save money, sometimes thousands a year or even a month. If you have a question about licensing and pricing of D365, you can ask us.

How an ERP Can Help You, Your Company and Your Team?
One of the biggest advantages of an ERP system is the ability to make business decisions efficiently and effectively. For example, by having timely financial reports, managers (and sales people) can help increase revenue and decrease unnecessary costs. Purchasers, in turn, can always order what is needed to fulfill orders timely (which may result in higher customer satisfaction and, therefore, more orders) and avoid over-ordering (which helps save money and prevents waste of goods and services).

Besides helping with financial and inventory reports, an efficient ERP system can streamline processes. For example, it is possible to send an Sales Invoice to a Customer or a PO to a Vendor within a click or so.

Additionally, when it comes to Microsoft ERP systems (such D365BC), it can integrate with other Microsoft products (e.g. Office 365, Outlook, PowerBI, etc.) and many other (non-Microsoft) system through API.

D365 is an umbrella term for different Microsoft products. These products are licensed and priced based on a number of factors. D365, including its ERP apps are used by companies to help increase efficiency and effectiveness of their business.

Edocation team has tremendous experience in ERP analysis (including, license advice and fit-gap analysis), implementation, upgrade, migration and support and you can contact us for a free consultation.

Related Posts
1. Dynamics 365 Business Central: 2019 Release Wave 2

2. How to Save on Microsoft Dynamics 365 Business Central (ERP) Implementation

Further Reading
1. Microsoft Dynamics 365 official Web page

2. Microsoft Dynamics 365 licensing guide