October 2024 Microsoft Dynamics 365 Pricing Update: What You Need to Know

Microsoft has announced its first pricing update for Microsoft Dynamics 365 in over five years, a development that will affect a range of products within its CRM and ERP offerings. With the effective date set for October 1, 2024, this update brings a lot of attention from businesses that rely on Dynamics 365 to streamline their operations and manage customer relationships.

So, what exactly does this pricing update mean for your organisation? Why has Microsoft decided to change pricing now? And more importantly, how will these changes impact the value you get from your Dynamics 365 solutions?

In this blog, we’ll break down everything you need to know about the October 2024 Dynamics 365 pricing update, the reasons behind it, and how to ensure your organisation continues to reap the benefits of one of the most innovative business application suites on the market.

The Reason Behind Updating the Pricing

You may wonder why Microsoft has updated its pricing after over five years. A lot has changed since the last pricing update. In that time, Microsoft Dynamics 365 has evolved significantly. What started as a powerful tool for CRM and ERP has now grown into a fully integrated platform with applications across marketing, sales, customer service, finance, operations, supply chain, and more.

Microsoft has continuously introduced hundreds of new features and enhancements that transform how organisations work. These innovations are driven by artificial intelligence (AI) and data insights, helping businesses streamline their processes, improve collaboration, and ultimately drive better outcomes.

For instance, one of the biggest recent advances has been the introduction of Microsoft Copilot. This AI-powered assistant helps users across Dynamics 365 leverage real-time insights to make smarter decisions, automate routine tasks, and enhance customer experiences. From marketers using AI-driven customer insights to service agents resolving issues with the help of automation, Dynamics 365 has continued to help businesses work smarter, faster, and more effectively.

While the technology has advanced rapidly, pricing has remained unchanged for five years. This update is Microsoft’s way of ensuring the pricing better reflects the expanded capabilities and value that Dynamics 365 now delivers.

The Updated Pricing List

Note: The above price is offered under the Annual Licensing Contract and subject to change by Microsoft. For the most competitive rates, please contact Dynamics Square

Which Microsoft Products Will Have Updated Pricing?

The pricing changes set to take effect on October 1, 2024, will impact a wide array of Dynamics 365 products. These include applications across key business areas such as:

Sales: For sales teams using Dynamics 365 to manage leads, close deals, and nurture customer relationships, the updated pricing will reflect the additional AI-powered features introduced in recent years.

Marketing: Dynamics 365 for Marketing, now rebranded as Dynamics 365 Customer Insights, offers tools for creating personalised campaigns and tracking customer engagement. It will also see a price adjustment.

Customer Service and Field Service: These applications have been enhanced with real-time analytics, chatbots, and other AI-driven features that improve the customer service experience. The pricing updates will account for these added capabilities.

Finance, Operations, and Supply Chain: These areas have benefited from automation tools that streamline financial processes, enhance supply chain visibility, and improve overall operational efficiency.

However, it’s worth noting that Microsoft Dynamics 365 Business Central, a key tool for small and medium-sized enterprises (SMEs), will not see a change in its cloud pricing. This is great news for businesses using Business Central to manage their finances, supply chain, and operations in a simplified, cost-effective way.

Reviewing the specific pricing updates for each application is important if you're using any of the above products. Microsoft has made the full list of products with updated prices so be sure to look to understand exactly how your licenses will be affected.

What is the Impact of the Updated Pricing on Your Business?

Now that we know which products are affected let’s talk about what this means for your business. Will these pricing changes increase your overall costs? Or will they be offset by the added value of the new features?

The answer largely depends on how your business is using Dynamics 365. Suppose you’ve been leveraging some of the newer AI-driven features, such as Microsoft Copilot or real-time analytics. In that case, the price increase may feel justified, given the additional value these tools bring. For instance, Copilot can significantly reduce your employees' time on repetitive tasks, freeing them up to focus on more strategic initiatives.

On the other hand, if your business uses Dynamics 365 primarily for its core CRM or ERP functions, you may want to take this opportunity to explore the newer features and capabilities that have been added over the last few years. By adopting some of these innovations, your business could see greater efficiencies and productivity gains that offset the cost of the pricing increase.

For those concerned about budget impacts, now is a great time to engage with your Microsoft partner or account manager. They can help you explore ways to optimise your current setup, maximise your return on investment, and ensure you’re taking full advantage of everything Dynamics 365 offers.

What Doesn’t Change?

Despite the pricing changes, one thing remains constant: Microsoft’s commitment to delivering the highest possible value through its business applications. Dynamics 365 continues to be one of the most comprehensive, scalable, and innovative platforms available. Microsoft is dedicated to ensuring that organisations of all sizes can leverage it to fuel their digital transformation.

In addition, Microsoft’s pricing strategy aims to be as transparent and consistent as possible across different currencies and regions. So, while there will be updates to the pricing structure, businesses can rest assured that prices will remain comparable globally, ensuring fairness regardless of where your business operates.

What is Your Next Step?

With the October 2024 pricing update just around the corner, now is the time to start preparing. Here are a few steps you can take to ensure your organisation is ready:

Review the Updated Pricing List: Head to Microsoft’s website to check out the full list of products affected by the pricing changes. Ensure you understand how the new prices will impact your current licenses and subscriptions.

Explore New Features: Take this opportunity to review some of the new features and capabilities that have been added to Dynamics 365 in recent years. Now might be the perfect time to start if you’re not already using AI-powered tools like Microsoft Copilot. These innovations can help you get more value from your investment.

Talk to Your Microsoft Partner: Your Microsoft partner can provide valuable insights into how the pricing changes will affect your business and help you identify ways to optimise your use of Dynamics 365. Whether finding cost-saving opportunities or unlocking new capabilities, your partner can be a key resource during this transition.

Plan for the Future: Dynamics 365 can grow with you as your business grows and evolves. The pricing update is an opportunity to re-evaluate your current setup and ensure it aligns with your long-term business goals.

Conclusion

While price increases are never ideal, the October 2024 Dynamics 365 pricing update reflects the incredible advancements made within the platform over the past five years. With AI-driven insights, enhanced automation, and a fully connected suite of business applications, Dynamics 365 continues to provide organisations with the tools they need to thrive in an increasingly complex business environment.

By staying informed and taking full advantage of the platform’s new features, your business can maximise its return on investment and stay ahead of the competition.