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Microsoft Dynamics 365 Licensing

This article explains about Microsoft Dynamics 365 Licensing that will guide you through the process of finding and purchasing the licenses that best fit your organization’s needs. Microsoft Dynamics 365 (Dynamics 365) is the next generation of intelligent business applications in the cloud.

Dynamics 365 unifies CRM and ERP capabilities by delivering new purpose-built applications to help manage specific business functions, including D365 for Sales, MS D365 for Marketing, D365 for Customer Service, D365 for Field Service, D365 for Project Service Automation, MS D365 for Finance and Operations, MS D365 for Retail and D365 for Talent.

Dynamics 365

Dynamics 365

Outlined to be personalized, enable greater productivity, deliver deeper insights and adapt to business needs, Dynamics 365 applications help businesses accelerate digital transformation to meet the changing needs of customers and capture the new business opportunities of tomorrow.

Microsoft Dynamics 365 Licensing Requirements



1. Licensing Requirements for the Internal Users

Customers must purchase the Subscription Licenses (SL) for their organization or their affiliates employees and on-site agents, vendors or contractors who directly or indirectly access the Dynamics 365 solution.

Dynamics 365 for Marketing

Dynamics 365 for Marketing

Dynamics 365 has two types of SLs (the only exception is Dynamics 365 for Marketing application, which is licensed per organization)

  • User SL

The primary licensing is by User SLs, which are assigned on a “named user” basis, meaning each user requires a separate User SL named user subscription. User SLs cannot be shared, but an individual with a User SL may access the service through multiple devices.

  • Device SL

With Device SL any number of users can access a licensed device with separate logins without the need for separate User SLs. Individual users cannot be tracked as they all share one login.

2. Licensing Requirements for the External Users

External users are the end customers and third party users of the organization or its affiliates and do not require SLs’ to access Microsoft Dynamics 365. External user access is included with the organizations internal user SL’s. Customer Engagement Applications graphical user interfaces may not be accessed by external users.

3. Multiplexing

Multiplexing refers to the use of hardware or software that a customer uses to pool connections, reroute information, or reduce the number of devices or users that directly access or use the Dynamics 365 service.

Multiplexing does NOT reduce the number of SLs of any type required to access the Dynamics 365 service. Any user or device that accesses the Dynamics 365 service whether directly or indirectly must be properly licensed.

Microsoft Dynamics 365 Licensing Subscriptions

With one single user subscription, a Plan subscription is the most cost-effective option to provide ultimate flexibility for a user to have access to any Dynamics 365 functionality.

Microsoft PowerApps

Microsoft PowerApps

Plan subscriptions provide users rights to use functionality across any of the respective Plan applications as well as use of Microsoft PowerApps, the mobile application platform service.

  • Dynamics 365 Plan

Dynamics 365 Plan includes access to Customer Engagement Plan functionality plus Dynamics 365 Unified Operations Plan.

  • Dynamics 365 Customer Engagement Plan

Dynamics 365 Customer Engagement Plan gives you the flexibility to work with any application functionality within the plan.

  • Dynamics 365 Unified Operations Plan

Dynamics 365 Unified Operations Plan includes full read, edit and approval access across the entire ERP solution.

  • Dynamics 365 Applications

Application subscriptions are named user subscriptions where a user is licensed only for one individual application.

For more information on Microsoft Dynamics 365 Licensing, please contact us.

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