Microsoft confirms pricing and licensing updates for Dynamics 365 coming in October 2019

Microsoft's "placemat" view of the new Attach pricing model for Dynamics 365

Microsoft today confirmed the pricing and licensing updates coming to both Dynamics 365 and Power Platform on October but offered only limited new details on what partners and customers should expect.

The new licensing for apps under the Dynamics 365 Customer Engagement and Finance and Operations (aka Unified Operations) product lines was revealed at Inspire 2019 and will allow for pricing calculated on an app consumption basis, with every user assigned a base app, for which they pay the full (new) price and an "attach" price for each additional app from either collection. The move will also divide today's Finance and Operations solution into separately licensed Finance and Supply Chain Management (SCM) applications alongside the existing Retail and Talent products.

In a blog post today recapping Inspire 2019 announcements and information, Microsoft CVP Alysa Taylor reiterated the company's commitment to the new model but offered few additional details beyond what was shared at Inspire 2019. She wrote:

In October, Microsoft will be moving from “one-size-fits-all” Microsoft Dynamics 365 licensing plans to focus on providing customers with the specific Dynamics 365 applications that meet the unique needs of their organization. Customers need software that aligns to their functional roles and scenarios, and they require the ability to add or remove applications as their company grows and changes over time. The new licensing model will allow customers to purchase the applications they need, when they need them. Each application is extensible, and applications can be easily mixed and matched to configure integrated solutions that align to a customer’s unique business requirements.

Taylor recommended people review the slides from the related Inspire sessions, “Customer Engagement Licensing Updates” (Session I-BAP203) and “Unified Operations Licensing Updates” (Session I-BAP209), which are now available for download, though the recorded presentations appear to have been taken down.