How will the new Dynamics 365 BC licensing affect your business?

March 16, 2020
Dynamics 365 Business Central licensing

With the introduction new Microsoft licensing terms have followed. Do you want to expand your current Dynamics NAV solution or convert your licenses to Business Central? Read about the possibilities here.

Last updated on March 16, 2020

Dynamics 365 Business Central licensing

Licensing Business Central

Microsoft Dynamics 365 Business Central was released in 2018 with a complete cloud ERP system consisting of NAV 2018 technology. The new solution in Microsoft’s portfolio included new license types and licensing terms depending on the individual Dynamics NAV existing license and the future business plans of the license owners.

In BC we find the following license types: Essentials, Premium, Team Members and Device:

  • Essentials is for companies who want a sophisticated yet simple business solution across finance, logistics and project management
  • Premium is for companies who seek an all-in-one solution for finance, logistics, project management, service management, and manufacturing
  • Team Members is users that can read, approve and/or create orders and reports
  • Unlike the other licenses the Device license is non-personal. It can be licensed for devices used for point of sale, on the shop floor, by store managers and in the warehouse.
Business Central licens types

Differences between NAV licenses and BC licenses

The licensing differs in several ways:

    • Dynamics NAV licenses are calculated from concurrent users, where multiple users can share a license. Business Central licenses, on the other hand, are calculated from named users
    • With Business Central it is no longer necessary to have a Starter Pack. As a minimum, you need a Premium or Essentials user
    • It is only possible to have either Premium or Essentials users in your license. You can purchase Teams Members for both Premium and Essentials licenses.

Learn more about Dynamics 365 Business Central licensing here »

Do you wish to implement or continue with Dynamics NAV 2018?

It is no longer possible to upgrade an older NAV solution to NAV 2018 or to offer 2018 licenses to new customers. If you are using Dynamics NAV 2018 already, you can continue using your existing licenses and purchase additional licenses when needed.

Are you planning on upgrading your existing Dynamics NAV solution to BC on-premises?

Are you already using Dynamics NAV, but wish to upgrade? Then you have the opportunity to do so today. As described above in licensing, the licensing setup is different in Business Central. Therefore, your initial licensing setup will be changed to the new terms.

If you have purchased your Dynamics NAV with Module Based Licensing, Business Ready Licensing or Perpetual Licensing, your current NAV licenses will be converted from:

  • One Full User in Extended Pack to three Premium users (purchased before October 1. 2018)
  • One Full user to three Essentials users (purchased before October 1. 2018)
  • One Limited user to three Team Members (purchased before December 1. 2018)

In addition to the converting of licenses, the licensing setup is different. As mentioned, Dynamics NAV licenses are calculated from concurrent users, where multiple users can share a number of licenses. Business Central licenses, on the other hand, are calculated from named users. The total value of your current licenses will remain the same – even after the conversion.

If your Dynamics NAV has Subscription Licensing you can change the subscription to Dynamics 365 BC on-premises.

Michael Garver Burgaard

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