Microsoft has announced that “simplifications and adjustments” to pricing and licensing are coming with Microsoft Dynamics AX 2012 R3. The pricing approach won’t change structurally, but the added capabilities in the new release will lead to price increases, at least on the server side.
Redmond did not publicly release specific numbers, saying the cost of solutions will continue to be based on the individual needs of each customer. But the company said it is in the process of alerting partners to the details of the pricing scheme.
When AX 2012 R3 is released in April, Microsoft said partners will have access to price lists so they can help customers in their purchasing decision.
The company said the Server + CAL licensing model will remain. “With Microsoft Dynamics AX, there are no complicated and multiple modules to understand, count, license and track, just server licenses and CALs (client access license) for users or devices,” said Paco Contreras, Director of Business Planning, Pricing and Licensing, Microsoft Business Solutions, in a blog post.
Microsoft will continue to offer four-tiers of CALs with options to license devices or users. And it has made the following minor adjustments based on value and feedback:
- The Enterprise CAL will continue to provide full access to all functionality. Redmond is reducing the price of the Enterprise CAL based on customer and partner feedback.
- The Functional CAL will offer new role-based capabilities such as marketing manager, environmental manager and quality control manager, among others that were previously only available in the Enterprise CAL. Additionally, much of the new warehouse and transportation functionality will be accessed through the Functional CAL. Microsoft said there will be a slight price increase for this CAL.
- The Task CAL will offer expanded use rights with approval of invoices and approval of all time and expenses. Microsoft said it will also add rights to operate a warehouse device as well as some administrative functional roles. There is no price change for this CAL.
- The Self-Serve CAL will remain the same in use rights and price.
The Server License will account for the new set of capabilities added to AX 2012 R3 within retail, master data management, warehouse management, transportation management and enhanced Microsoft Dynamics Lifecycle Services.
“With this improved value, we will be reflecting an increase in the price of the Server License,” Contreras wrote.
“In summary, we are maintaining the familiar and flexible Server-CAL licensing model for Microsoft Dynamics AX, with no multiple modules to understand and license separately,” Contreras said. “We are introducing more value and functionality and making adjustments based on customer and partner feedback. All of this while keeping changes to a minimum.”
Microsoft introduced a new pricing model for Dynamics GP and Dynamics NAV in July 2012, which represented a more significant change of direction. The company marketed the pricing scheme as “Napkin Pricing” with the goal of getting prospective Dynamics GP and NAV customers to focus on the solutions not the prices. It was intended to let account execs provide fast quotes of the Perpetual Licensing models based on the potential number of user licenses an organizations buys.
When Microsoft made these announcements about GP and NAV pricing at Convergence in 2012, the company also changed the pricing scheme for Dynamics AX. One goal of the changes, Microsoft explained at the time, was to create incentives for larger customers (with roughly 100 seats or more) to select AX while smaller customers would opt for GP or NAV based on license costs. At the time, MSDynamicsWorld.com reported how a company buying more seats would potentially see more value in going with AX: “The price comparisons reverse for the larger deals, and this was by design. [Pricing lead Carl] Radecke explained that the Dynamics ERP team wants to add value to Dynamics AX for customers with more than 100 users.”
by Linda Rosencrance. Published February 5, 2014 and shared via http://msdynamicsworld.com/story/pricing-and-licensing-changes-coming-dynamics-ax-2012-r3-microsoft-advises