Microsoft announces better storage allowances for Dynamics 365 Business Central cloud customers

April 13 2021

Microsoft is preparing to roll out new pricing and allowances on Dynamics 365 Business Central cloud storage. With the new plans, all customers will gain added storage based on the number of Essential and Premium seats they own. And new pricing for additional storage will be slashed by three quarters or more.

The Business Central leadership team announced the plans at their latest Business Central Launch Event for 2021 release wave 1. General manager Mike Morton acknowledged the change was one that many partners and customers have been asking for because the current model is not feasible for a sizable number of organizations looking to either upgrade or move to the cloud.

The new model builds on the old 80 GB storage entitlement by adding 2GB per user for Essential licenses and 3GB per user for Premium. These added storage allocations will take effect for all Business Central cloud customers on July 1.

While Morton said his team is confident this new model will meet the needs of the vast majority of customers, Microsoft will continue to offer added storage, but now at a reduced price, from $40 per GB to $10. And when purchased in increments of 100GB, the price falls to $5 per GB.

"Hopefully we won't have to talk about storage again," Morton said, adding that his team had simulated a range of examples of real customer scenarios that ranged from thousands to tens of thousands of dollars in extra storage costs per month (as high as $56,000 per month for a 1.5TB database) down to no added cost.

While Morton said he believes almost all customers will be covered by the new allowances and therefor not need to purchase storage, customers that still find they need to buy it will need to change to a new purchase SKU for the reduced prices when they become available.

In response to audience questions, Morton added that Microsoft has no pricing announcements planned on the topic of purchasing added Business Central environments like added dev or staging environments. He also didn't rule out additional updates in the future. "We want to make Business Central as competitive as possible in terms of pricing," he added.

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Prior to co-founding, Jason was a Principal Software Consultant at Parametric Technology Corporation (PTC), where he implemented solutions, trained customers, managed software development, and spent some time in the pre-sales engineering organization. He has also held consulting positions at CSC Consulting and Monitor Group.

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