How will the new Dynamics 365 Business Central licensing affect your business?

November 14, 2018
Dynamics 365 Business Central licensing

With the introduction of Dynamics 365 Business Central, 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.

Dynamics 365 Business Central licensing

Dynamics 365 Business Central licenses

Now that Microsoft Dynamics Partner conference, Directions EMEA, is over, we are back with a lot of new information regarding Dynamics 365 Business Central licenses, and what it means for existing NAV customers.

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

In Business Central we find the following license types: Essentials, Premium and Team Members:

  • 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.
Business Central licens types

Differences between NAV licenses and Business Central licenses

Licenses for Business Central differ from Dynamics NAV licenses 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?

If your company is planning on implementing or upgrading to Dynamics NAV 2018, there are still some months left to go. Microsoft has set a deadline for March 31, 2019 for the purchase of new licenses and for upgrading older NAV licenses to NAV 2018. If you have an older version of Dynamics NAV and wish to upgrade to 2018, you should start the process before the deadline. As of April 1, 2019, 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 if needed. The deadline in April 2019 does, therefore, not apply to existing NAV 2018 customers.

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

Are you already using Dynamics NAV, but wish to upgrade to Dynamics 365 Business Central? 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 with the upgrade to Business Central on-premises.

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 two Premium users (purchased before October 1. 2018)
  • One Full user to two Essentials users (purchased before October 1. 2018)
  • One Limited user to two 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 Business Central on-premises.

Maria Bindesbøll at Navi Partner

Want to learn more?

Want to learn more about Dynamics 365 Business Central? Contact us today for a noncommital talk with one of our consultants. We might be helpful in transforming your business.