Price increases are coming to some Microsoft Dynamics 365 apps

Microsoft will be raising prices on several Dynamics 365 apps later this year, with increases of about ten to fifteen percent.

The changes will impact a range of Dynamics 365 Sales, Customer Service, Field Service licenses, as well as Finance, Supply Chain Management, Human Resources, and Project Operations.

Per-user per-month pricing will go up for fourteen SaaS products. A few examples include: 

• Dynamics 365 Sales Enterprise – from USD$95 to $105
• Dynamics 365 Customer Service Enterprise – from $95 to $105
• Dynamics 365 Finance – from $180 to $210
• Dynamics 365 Supply Chain Management – from $180 to $210
• Dynamics 365 Project Operations – from $120 to $135

Prices for Dynamics 365 on-premises Customer Engagement and Operations products will increase by the same percentage as the respective cloud versions.

Pricing for Dynamics 365 Business Central, Microsoft’s SMB ERP offering, will not change, the company stated. A Microsoft spokesperson also told MSDW that pricing for “subsequent qualifying Dynamics 365 apps”, such as a license of Customer Service Enterprise at a lower price for a user who already has Sales Enterprise, will not change as part of this update. 

The spokesperson also clarified that these price changes will not be accompanied by any specific changes to the Dynamics 365 Licensing Guide and it will not change any partner activities or incentives. 

In a blog post, Microsoft CVP Bryan Goode wrote that the price increases come after five years of product updates and enhancements. 

Since our last pricing update, Dynamics 365 has transformed CRM and ERP with connected applications for every line of business – across marketing, sales, customer service and field service, finance, operations, and supply chain – and each year, we release hundreds of new features and enhancements designed to help people work smarter, reclaim time, and collaborate seamlessly.

Some of the current prices for enterprise Dynamics 365 apps date back to changes announced in July 2019 and rolled out in October 2019, including Sales Enterprise, Customer Service Enterprise, Field Service, Supply Chain Management, and Finance. 

Speaking to analysts in March, Microsoft’s Jared Spataro, CVP for Modern Work and Business Applications with overall marketing responsibilities, stated that Dynamics apps are still priced below some competitors. He said:

I had the chance to start to manage Dynamics, I don't know if it's been 18 months ago. And I have just been amazed at the price/value ratio we have with Dynamics. If you look at the price point versus the competition like Salesforce, we have an incredible steal of a deal. And I do believe it's a lot of like under known.

Microsoft revealed in a 2023 earnings report that Dynamics 365 is now a $5 billion business, with each of the key apps now surpassing $1 billion in revenue.