Most companies renew their Dynamics 365 licenses the same way they file taxes: they wait until the last moment, scramble for information, and sign off just to get it done. 

A Dynamics 365 renewal is one of the few times an organization pauses and looks at its digital foundation. It’s a rare moment when you can step back and ask: Is our system still supporting how we actually work? Are we paying for features we don’t use? Are we ready for what the business needs next?

This viewpoint aligns with insights shared by Manish Goyal, Co-Founder of Dynamics Square, in his Forbes Technology Council article, “Are You PREPARED? Turning Dynamics 365 License Renewal Into Strategic Advantage” (Dec 03, 2025). In that piece, he explains how most organizations treat renewal as a transactional step rather than a strategic checkpoint — missing the chance to reassess performance, strengthen architecture, and realign technology with where the business is headed next.

To help companies turn this moment into something far more strategic, I use a practical approach called the PREPARED Framework. It’s designed to slow the renewal conversation down just enough so leaders can make decisions based on evidence, not habit.

Below is what PREPARED really looks like in practice — and why more businesses are adopting partners like Dynamics Square to guide them through it.

1. Start With Performance, Not Pricing

Before deciding what to renew, get a clear picture of how Dynamics 365 is performing today.
Not server uptime.
Not login counts.
Actual business performance.

For example:

• Are month-end processes faster than they were last year?
• Are supply chain teams actually using automation, or falling back to spreadsheets?
• Are sales teams working inside the CRM or exporting data to third-party tools?

When organizations examine the real numbers — cycle times, accuracy rates, automation usage — the renewal conversation shifts from “How much are we spending?” to “What are we getting out of it?”

2. Check Whether the System Still Matches the Business Strategy

This is the most overlooked part of any renewal. Your business is not the same as it was when you first implemented Dynamics 365.

Maybe:

• You're entering new markets
• You’ve expanded the product line
• You’re focusing on sustainability, analytics, or customer retention
• Or your leadership priorities have shifted entirely

If the system hasn’t evolved with the business, renewal becomes the perfect moment to realign. Sometimes it means adding new modules. Sometimes it means removing old ones. Often it means cleaning up configurations that once made sense but now slow the business down.

3. Review the Systems Connected to Dynamics 365

Most Dynamics environments depend on a web of integrations — Power Platform apps, Azure services, ISV tools, finance connectors, warehouse systems, and legacy apps.

A renewal is a good time to ask:

• Are these integrations still stable?
• Are we paying for custom connectors we no longer need?
• Can some integrations be simplified or modernized?

Inefficient integrations cost money, create frustration, and limit scalability. Clearing up even one or two points of friction can have a dramatic impact.

4. Assess Your Readiness for the New Wave of AI and Automation

Microsoft is pushing consistent improvements across Dynamics 365 — especially around AI and Copilot-driven capabilities. But many organizations aren’t structured to benefit from them yet.

Before renewing, check:

• Is your data clean enough for predictive insights?
• Are your security roles defined well enough for automated recommendations?
• Do you have the right metadata and processes in place?

You don’t need to adopt every AI feature immediately, but you should be preparing the foundation. Renewal becomes the checkpoint for that preparation.

5. Understand How People Actually Use the System

A surprising truth: most companies drastically overestimate their user adoption.

Just because people log in doesn’t mean they’re using the system the right way — or gaining value from it.

Look at:

• User feedback
• Common workarounds
• Training gaps
• Areas where teams revert to Excel
• Features no one touches

Renewal opens the door to fixing these issues, retraining teams, and redesigning workflows. When adoption improves, ROI naturally follows.

6. Evaluate the Team and the Partner Behind the System

The technology is only half the story. The people supporting the system matter just as much.

Internally:

• Do you have enough functional and technical ownership?
• Are day-to-day issues resolved quickly?
• Is there someone ensuring best practices are followed?

Externally:

• Is your Microsoft partner proactive or reactive?
• Do they advise you on roadmaps, licensing, and future capabilities?
• Are they capable of supporting more complex initiatives like expansions, integrations, or AI adoption?

This is where Dynamics Square plays a significant role for many businesses. Organizations choose them not simply for implementation, but because they act as a long-term advisor — someone who steps in during renewal cycles, audits the environment, identifies hidden costs, and helps shape a roadmap that aligns with business goals.

A strong partner can turn renewal from an administrative step into a strategic planning exercise.

7. Anticipate Growth — Don’t React to It

Many renewal mistakes happen because companies think only about today’s license count.

Instead, consider:

• Upcoming locations
• New business units
• Potential acquisitions
• Increases in transaction volumes
• Operational expansions

By planning growth into your licensing and architecture, you avoid costly fixes later. Renewal isn’t just about continuity. It’s about future capacity.

8. Revisit Data Governance and Compliance

Regulations shift. Privacy expectations increase. Security threats evolve.

Renewal is your moment to review:

• Who has access to what
• Whether data retention periods are correct
• Whether encryption and audit settings meet current standards
• Regional compliance requirements (especially for multi-country operations)

This step alone can prevent significant risk.

Putting PREPARED Into Action

Organizations that use the PREPARED framework usually follow a four-stage process:

Stage 1: Discovery

Collect performance data, review integrations, study adoption patterns, and gather input from teams.

Stage 2: Insight

Identify gaps, underused licenses, friction points, redundancies, and areas for improvement.

Stage 3: Roadmap

Determine what needs to change: licensing mix, modules, governance, training, integration cleanup, or new capabilities.

Stage 4: Renewal

Use your findings to negotiate confidently, renew only what you need, and position the system for future growth.

A Renewal That Builds a Stronger Future

A Dynamics 365 renewal is not just a budgeting checkpoint. It’s one of the most important opportunities you have to:

• Evaluate what’s working
• Correct what isn’t
• Modernize your environment
• Prepare for AI-driven capabilities
• And ensure your system can scale with your business

When companies combine a structured approach like PREPARED with the right advisory partner, renewal becomes far more than a contract extension. It becomes a strategic moment — one that strengthens the foundation of the business for the years ahead.

FAQs on Dynamics 365 License Renewal 

1. What is a Dynamics 365 license renewal?

A Dynamics 365 license renewal is the process of extending your subscription for the next term while reviewing your licensing needs, user adoption, system performance, and future business requirements.

2. Why is a Dynamics 365 renewal important?

Because it’s the best time to evaluate whether your current licenses, modules, and integrations still support the way your business actually operates. Renewal gives you the opportunity to optimize costs, improve system performance, and plan for upcoming growth.

3. How do I prepare for a Dynamics 365 renewal?

Focus on eight areas:

1. Performance
2. Relevance to business strategy
3. Integrations
4. AI readiness
5. User adoption
6. Team and partner capability
7. Scalability
8. Data governance

This ensures your renewal is based on real needs, not assumptions.

4. How can I reduce Dynamics 365 licensing costs?

Audit your license usage, remove underused seats, reassign roles, retire outdated customizations, and simplify integrations. Many businesses find cost savings simply by adjusting user roles or eliminating redundant modules.

5. How does AI affect Dynamics 365 renewals?

AI features like Copilot require clean, structured data and proper security roles. A renewal is the ideal time to evaluate whether your system is ready for analytics, automation, and AI-driven insights.

6. What role does a Microsoft partner play in renewal planning?

A partner can audit usage, validate your licensing mix, recommend the right modules, and help align your system with your business roadmap. Companies often rely on trusted partners like Dynamics Square for strategic renewal guidance, cost optimization, and long-term support.

7. When should I start planning for my Dynamics 365 renewal?

Most organizations start 60–90 days before renewal. This gives enough time to assess performance, collect user feedback, evaluate licensing needs, and negotiate effectively.

8. What are the biggest mistakes companies make during renewal?

• Renewing licenses without reviewing usage
• Ignoring system performance and user adoption
• Forgetting to evaluate integrations
• Not preparing for scalability or AI adoption
• Treating renewal as paperwork instead of a strategic review