Microsoft prepares to end new licensing deals for Dynamics AX 2012 R3

Now that Microsoft has released the on-premise version of Microsoft Dynamics 365 for Operations, dubbed Dynamics 365 for Operations Local Business Data, the company will no longer offer Dynamics AX 2012 R3 to new customers as of July 1. This coincides with the expected Spring 2017 release of D365 for Operations.

Although this move was expected, the timing was a bit sooner than most people anticipated, according to a blog post by Ellipse Solutions. "All good things must come to an end," wrote the Ellipse team; it described the discontinuation as the "inevitable aftershock" of the Dynamics community's pressing for an on-premise D365 for Operations.

Another likely consequence is that functional enhancements will be limited to Dynamics 365; and while bug fixes and code maintenance will likely continue for Dynamics AX 2012, functional improvements will decelerate rapidly.

Customers that are currently running Dynamics AX 2012 can still buy additional licenses. However, after July 1 those licenses will be based on a new pricing list, and invoiced according to the new pricing, according to Ellipse. The existing licenses for customers that stay on the current Enhancement Plan will not be affected.

Microsoft has also added a new "middle-tier" user license called "Activity" to Dynamics 365. This license is similar to the AX 2012 Functional license, but adds more functionality for less money than the full Dynamics 365 Operations licenses.

And Ellipse reports that Microsoft will continue to offer Business Value Discounts for Dynamics AX 2012 R3, it will not offer those discounts for Dynamics 365 for Operations Local Business Data.

In addition, Dynamics AX 2009 customers can no longer ...