Microsoft plans to increase prices for a variety of Dynamics 365 offerings on Oct. 1 by an average of 12% or $17 per user or per device per month, as the vendor adds more generative AI functionality and options for the suite.
This marks the first price update for users of the vendor's CRM and ERP suite in more than five years, according to a blog post on Friday. Offerings will increase by between $10 and $30 (9%–17%).
"Each year, we release hundreds of new features and enhancements designed to help people work smarter, reclaim time, and collaborate seamlessly," Bryan Goode, Microsoft's corporate vice president of business applications and platform, said in the blog post.
Michael Goldstein, CEO of Florida-based Microsoft partner LAN Infotech told CRN in an interview that D365 has been benefiting from Microsoft's GenAI push lately and added plenty of capabilities since the 2019 price change to justify an increase. "We have seen a lot of value added in that time," he said.
Prices for Dynamics 365 on-premises customer engagement and operations products will increase by the same percentage as the corresponding cloud versions, according to Microsoft. Prices of D365 Business Central and other offerings not explicitly named by Microsoft will be unchanged.
The price changes kick in on Oct. 1 for new customers and existing ones upon their renewal date, according to Microsoft. U.S. government prices for the same products will increase first by 10 percent that day, and then on Oct. 1 2025, they will have a smaller increase to equal commercial prices.
D365 price changes breakdown
The price increases will hit 14 D365 offerings. Facing the largest hikes of about 17% – or $30 per user per month – are the following offers:
- D365 Finance
- D365 Supply Chain Management
- D365 Commerce
Those three D365 offerings will increase from $180 to $210, according to Microsoft.
The following D365 offerings will increase from $145 to $160, up about 10%.
- D365 Sales Device
- D365 Customer Service Device
- D365 Field Service Device
And the following D365 offerings will increase from $95 to $105, an increase of about 11%:
- D365 Sales Enterprise
- D365 Field Service
- D365 Customer Service Enterprise
D365 Human Resources and Project Operations will increase from $120 to $135, up about 13%. D365 Operations Device will increase from $75 to $85, up about 13%.
Finally, Microsoft Relationship Sales will increase from $162 to $177, up about 9%. All tiers of MRS per user per month prices will increase by $15, according to Microsoft.
In January, during Microsoft's latest quarterly earnings call, the vendor reported that Dynamics products and cloud services revenue increased 19% year-over-year. Dynamics 365 revenue grew 24% year-over-year.
Microsoft said at the time that Dynamics revenue should grow in the mid-teens the following quarter. The vendor will report those quarterly earnings on 25th April.
This article was first published on CRN.
