What Does Dynamics 365 Business Central Cost

Posted on: May 2, 2019 | By: Jim Bertler | Microsoft Dynamics Business Central

So, a question we often get is, “How much does Dynamics 365 Business Central cost?” People are referring not so much to the implementation cost but the actual software cost. We can discuss the implementation cost in a separate blog. But from a software cost perspective, Dynamics 365 Business Central can be deployed both in the cloud and on premises, which is something a lot of folks don’t know. It’s touted as a cloud solution but absolutely can be done on premises as well.

Dynamics 365 Business Central Cost

There are two options or editions of Dynamics 365 Business Central that drive cost. The first is the Essentials edition, which is $70 per user per month, and then the Premium edition which is $100 per user per month. There also are team member licenses, which you can think of as read-only type of licenses which are $8 a user a month. You must choose whether you want either the Business Essentials version for $70 or the Premium version for $100. You can’t mix and match and have both editions in the same deployment. If you go on premises, those numbers are $2,000 a user for the Business Essentials, $2,800 a user for the Premium, and then $400 a user for the team member licenses. Those are onetime costs with a 16% annual maintenance fee added. The difference between the two editions is functionality. The Business Essentials edition contains all of the financial functionality and basic distribution functionality. If you need manufacturing functionality or deep distribution functionality like put away and pick logic than you will need the Premium edition.

Microsoft Promotions

Now the other interesting piece is if you already own a Dynamics solution, and typically companies own an on-premises solution like Dynamics GP or Dynamics SL.  In those instances, the cost of Dynamics 365 Business Central will change. There are promotions from Microsoft and the first promotion would be allowing you to move to the cloud, and you would get a 40% discount off those numbers that I quoted earlier of $70, $100, and $8. So, each of those would be discounted by 40% and that’s through the year 2020. The promotion may be extended but at this time the promotion is through 2020.

If you want to move to an on-premises solution and already have Dynamics GP or Dynamics SL or even Dynamics AX, you get a dollar for dollar credit from Microsoft for what you’ve already spent. So, let’s say over the years you’ve bought $50,000 worth of Dynamics GP software and users and modules. When you go to purchase Business Central on-premises, the Business Central cost is reduced by that $50,000 that you’ve spent already. For example, if you were going to buy $70,000 of Business Central software and had already spent $50,000 on Dynamics GP, you would only spend the $20,000 plus the 16% maintenance.

Summary

As you can see Microsoft offers some great promotions, and also, we feel a pretty reasonable cost for Dynamics 365 Business Central. If you’d like to discuss further, please feel free to contact Logan Consulting, your Chicago based Dynamics 365 Business Central partner. We’d be happy to discuss with you in more detail.

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