Dynamics 365 Pricing & Licensing Explained

Coins falling out of jar

Last year, Microsoft announced that Microsoft Dynamics CRM was being 'replaced' by Dynamics 365 to create one business application platform that combines CRM and ERP.

The release of Dynamics 365 brought new applications, features, functionality and also a new licensing & pricing model. This article will help to explain how Dynamics 365 is licensed - or you can download the Dynamics 365 Pricing & Licensing Guide here.

If you're an existing Microsoft Dynamics CRM customer, then check out our Dynamics 365 Transition Guide to discover how your licensing will map from Dynamics CRM to Dynamics 365. You can download the guide here.


There are two editions of Dynamics 365; Business and Enterprise.

business vs enterprise

SMB Offer

At the moment, we can only talk about Enterprise Edition, as information on Business Edition will be announced closer to its release. While smaller businesses might consider waiting until the Business Edition is released there is currently a fantastic SMB offer available to small businesses, allowing access to Enterprise edition at a great price. To find out more about this SMB offer please contact us.

dynamics 365 tablet

What’s included in Dynamics 365?

Dynamics 365 Enterprise can include the following applications:

Sales: Equip your sales team with the tools that they need to help them sell more and with greater speed while giving fantastic reporting insights for smarter decision making.
Customer service: Allow your customer service team to work quickly and effectively to resolve and manage cases, delivering fantastic customer satisfaction and building customer loyalty.
Field service: Empower your field service team, giving them the technology they need to easily book and manage field service calls - from scheduling assistance to inventory management.
Project service: Successfully manage your projects with Project Service, which includes features such as resource scheduling, customer billing, time and expense management and more.
Marketing: Microsoft are partnering with Adobe Marketing Cloud to provide a comprehensive marketing solution.
Operations: based on Microsoft Dynamics AX, this gives smarter operations capabilities from transportation to budget planning, inventory management to demand forecasting.

What else is included?

  • 1 x non-production instance
  • 1 x web portal
  • 10GB default storage (double the default in Microsoft Dynamics CRM)
  • Mobile offline access
  • Social Engagement
  • Voice of customer survey
  • Knowledge management
  • PowerApps & Microsoft Flow


There are two types of users in Dynamics 365: Light and Full users

users dynamics 365

Team Member

Team Member Licences provide users light access to all the Dynamics 365 apps to gain organisation-wide visibility, connect employees and allows them to read data from all Dynamics 365 applications as well as perform light tasks. It is a highly cost effective licensing method.

Tiered pricing no longer applies.

App Licence

If users only need to have full access to one app or ‘module’ within Dynamics 365 then an App Licence is the most suitable and cost effective option. This gives full use of the named app, however, if they need to have write access for another app then a Plan can be more cost-effective option.

Tiered pricing does not apply.

Plan Licence

If a user needs to have full read/write access to multiple apps then a Plan is the most cost effective route to take. With a Plan, you gain access to the full CRM suite of apps, which is ideal for power users or those than need to access multiple business apps in their role.

Tiered pricing applies.

There are two plans available:

Plan 1

Provides all CRM functionality, which is: Sales, Customer Service, Field Service, Project Service & Marketing (coming soon)

Plan 2

Provides CRM and Operations functionality, which is all the above plus Operations

Dynamics 365 plans

Device Licensing

You can now also licence devices so that any individual can use Dynamics 365 on the licensed device. This can be a very cost effective licensing method, for example for organisations that have shift workers or those in Retail. Rather than having to licence each user you can simply licence devices and then anyone can use these.

This only applies to Field Service, Customer Service and Sales apps in Enterprise edition. Plans do not apply for device licensing but you can mix and match device and user licenses.

device vs user licence dynamics 365

Tiered Pricing

Dynamics 365 provides tiered pricing to give discounted prices based on the number of seats being purchased. This only applies to Plan 1 licenses and not to App licences or Team Member licences. Plan 2 licenses do not apply but are counted toward Plan 1 totals.

Microsoft tiered pricing

Download the Pricing & Licensing Guide

Our pricing and licensing guide explains how Dynamics 365 is licensed and what is included to help you choose the most suitable licensing.

Remember it's always best to speak to a CRM partner to ensure you choose the most suitable and cost effective licensing for your organisation; please contact us.

Download button

This guide includes:

  • Dynamics 365 overview
  • Apps explained
  • What's included
  • Business vs Enterprise Edition
  • Pricing
  • Light vs Full Users
  • Team Member licence
  • App Licence
  • Plan Licences
  • Device Licensing
  • Tiered Pricing

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