Licensing Model Changes for Microsoft Dynamics NAV 2013, Part 1: Who Benefits and Why?

With Microsoft Dynamics NAV 2013 reaching its most important milestone, the Release-To-Manufacturing, the new licensing model takes over. As expected, Microsoft has paved the way for its newest release of its most popular Dynamics ERP product by changing the licensing model. There have been several major licensing model changes in the past, but this one is truly radical and it reflects Microsoft's shifting strategies in positioning Microsoft Dynamics NAV.

Simplification

Compared to earlier models, Perpetual Licensing is a lot simpler. Business Essentials and Advanced Management offerings have been discontinued and the Foundation Pack has been replaced with the Starter Pack. Every new customer must purchase the Starter Pack, which includes three full users, and is priced slightly more than twice the price of the old Business Essentials license. The Starter Pack allows users to access almost the same functionality as the Business Essential license did.

If the customer requires more advanced functionality, then they can purchase the Extended Pack, which is purchased only once regardless of the number of users. It allows all licensed users to access the full stack of Microsoft Dynamics NAV functionality at the flat price of two Starter Packs.

Whether or not the customer has purchased the Extended Pack, all new users are priced at the same price, and there is no waterfall pricing based on the number of users. The new user price is approximately half way between the old Business Essentials and Advanced Management user prices.

The Extended Pack is completely different from the Advanced Management offering. Whereas the Advanced Management simply allowed you to order additional granules, some at very high cost, the Extended Pack includes almost ...