Deployment Cost Of Dynamics 365
There are two editions of Microsoft Dynamics 365: Business and Enterprise. The former is the least expensive option and is designed for small and medium-sized businesses with up to 99 employees, while the Enterprise edition is meant for companies with 100 or more employees. The Dynamics 365 cost is based on the edition, the number of users, and their roles in terms of what features of the software they need to access in order to perform their job functions. Read more about dynamics 365 pricing and options.
In addition to role-based licensing, there's the more traditional, application-based licensing, in which you would pay a per-user fee for individual apps, such as Dynamics 365 for Operations, Sales, Customer Service, Field Service, or Project Service Automation. Microsoft PowerApps is often used in conjunction with Dynamics 365 and is eligible for application-based licensing as well.
Business Edition Pricing
The Business edition is also known as Business Financials and Dynamics 365 for Financials. It's ideal for companies that have graduated from basic financial and accounting software but aren't yet ready to invest in a custom enterprise resource planning (ERP) solution. At only $40 per user per month, Dynamics 365 for Financials is an affordable stepping stone to a more advanced implementation.
Enterprise Edition Pricing
Microsoft dynamics CRM cost depends on #of users and deployment on premise / on cloud. Basic elements of ms dynamics CRM on premise product estimate are: 1. Professional server of dynamics CRM: 5000$ 2. Professional user (full access): 1.
The pricing for the Enterprise edition is a bit more complicated than that for the Business edition. In Dynamics 365 Plan 1, the cost is $70 per user per month for 500-999 users. Plan 1 includes Dynamics 365 for Sales, Customer Service, Field Service, and Project Service Automation. Also included are Microsoft PowerApps and Microsoft Flow.
Dynamics 365 Storage Pricing
For less than 500 users, or if operations functionality is needed, Dynamics 365 Plan 2 applies and is $210 per user per month. It includes all of the apps in Plan 1, as well as Dynamics 365 for Operations.
With the Enterprise edition, individual apps (Sales, Field Service, etc.) can be purchased at rates of $40 to $190 per user per month.
Team Members Pricing
Both the Business and Enterprise editions have a 'Team Members' licensing option, which is similar to the 'Limited' and 'Self-Service' roles associated with traditional Microsoft Dynamics products. The pricing for Team Members ranges from $4 to $10 per user per month, depending on the number of users and whether the plan is for the Business or Enterprise edition.
The Dynamics 365 cost breakdown is for the software alone; it does not include installation, configuration, or other products and services that might be required to successfully deploy your chosen edition. If you need implementation guidance from a Microsoft Certified Partner or would like a detailed estimate of the Dynamics 365 cost for your company's unique business case, please contact us.
How much does a Microsoft Dynamics GP implementation cost?
Most successful companies start their business with an entry level accounting solution and then face the daunting task of graduating to a more robust solution that’s more specific to their business requirements. While this is a great problem to have, it can be overwhelming to understand what to ask in order to understand the true costs of making that change.
Here we outline the cost considerations for implementing Microsoft Dynamics GP, but these buckets of cost are applicable for any accounting/ ERP software solution. Hopefully the breakdown we’ve provided will give you the means to ask the right questions and get specific, realistic answers.
First, you’ll need to consider how you will deploy your software:
On Premise vs. Cloud? The main difference, as it relates to cost, between these two options, is that On Premise software is paid for upfront and is typically a capital expense, while cloud software solutions are paid for on a per user/per month basis, and is an operating expense.
Every business has different needs. Some organizations only have capital money to spend, which typically drives them toward an On Premise solution. More recently, companies have had larger savings of operating expense funds, which is one reason why the cloud is becoming so popular.
Next, you’ll need to consider three main costs:
#1 Software Costs
A. Number of User Licenses
This has the biggest impact on your software costs, whether you purchase it up front (on premise), or you pay on a per user/per month basis (cloud).
- Dynamics GP Starter Pack comes with 3 Users and List Price is $5,000
- Each additional Full User is $3,000
- There are two other User License options with limited capabilities: Limited User for $600 and Self-Service User for $60
B. Advanced Functionality
If your business requires additional functionality for Manufacturing ($10,000), Extended HR/Payroll ($7,000), or needs to do additional development or configurations to the software ($6,000), these additional modules are available as a one-time charge (on premise), or as an increased per user, per month fee.
C. Third Party Products
While there is a breadth of functionality that comes with GP, out of the box, there are hundreds of Independent Software Vendors (ISVs) that write software for specific industries or functionalities. Often, Microsoft Dynamics GP users, will have one or more third party products to enhance their solution. The cost of these solutions vary because they range from simple utilities, on average $500 per user, to very robust industry specific user licenses, which can average $5,000 per user.
D. Annual Maintenance
You can expect to pay 20% of your software list price on an annual basis. This annual maintenance charge covers software upgrades, service packs, tax updates, and access to online help, communities, and learning resources.
#2 Service Costs
A. Rapid Implementation vs. Standard
Every Microsoft Dynamics GP partner has a different methodology, and the terms may vary, but generally you can expect that a Rapid Implementation will cost you less because your partner will do a significant amount of discovery up front, and then set the system up based on that what they’ve learned. With a Standard implementation, you can expect your partner to teach you the functionality of Dynamics GP, whereby you will decide which modules to use, and you will set the system up together as you go. A standard implementation is more thorough and, therefore, takes longer and costs more.
B. Train the Trainer vs. Train the Team
In every implementation, you will be expected to train at least one person from your team to be the “power user”. This person could be the “trainer” for the rest of your team. You could reduce training costs by training one (or more) power users, rather than training your entire team.
C. Data Conversion
This is where an implementation can get very expensive, and where you need to be sure you see the cost/benefit of converting your data. To keep costs down, stick to a typical data conversion, and don’t convert your transactional history. If you need to convert historical transactions, be realistic about the time it will take your team and your partner.
D. Integrations with Other Applications
Deployment Cost Of Dynamics 365 Business
If you’re using another software system, such as a POS system, or an in-house database, or need to create journal entries for your outsourced payroll, consider integrating these systems rather than entering the data twice. Often, integrating other applications, or importing data, is much simpler than you would expect and can save you time and money by not duplicating data entry.
E. Customizations
Consider modifications to the software that will increase productivity, or provide your business with specific functionality that would save you time and money in the long run by customizing the software using standard tools that don’t prohibit you from getting support or easily upgrading in the future.
#3 Hardware: Server and Workstations, Operating Systems, and Network Bandwidth
With either an On Premise or Cloud implementation, you will need to consider your network/ internet connection speed and reliability.
For On Premise implementations, you will also need to consider your hardware specifications and your operating system versions. Each of these needs to meet the requirements for the software and often require further investment to upgrade.
While we can’t provide an estimate here, because every situation is different, you need to consider these costs as a necessary element to implementing Microsoft Dynamics GP.
In summary, Microsoft Dynamics GP will cost you $3,000 to $5,000 per user, multiplied by the number of users and third party products and annual maintenance combined for an On Premise solution. Or $230 to $530 per user, per month for a cloud hosted solution. And service will cost you 2 to 4 times the cost of your software for both On Premise and Cloud solutions.
What are you waiting for? Call us to find out how much your customized Microsoft Dynamics GP solution will cost you!
207-761-2133 [email protected]
By Tidestone Solutions
Ask The Author |