Business Central On-Premises: Important changes to the licensing and costs of the Enhancement Plan

Microsoft announced changes to the availability and pricing of some on-premises products in early April 2023. These changes are another indication of the increasing cloud focus and reinforcement of the subscription licensing model. Below we provide a detailed overview of the changes.

The changes to Business Central on-premises licensing and pricing have two effective dates: October 1, 2023 and April 1, 2025. Below we explain what this means.

 

Change in on-premises pricing

In addition to the cloud pricing adjustments on April 1, 2023, there will be the following pricing adjustments starting October 1, 2023:

• 11% price adjustment for Dynamics 365 Business Central on-premises purchase licenses.
• 10% price adjustment for Dynamics 365 Business Central on-premises subscription licenses (rental licenses)
• 14% price adjustment for Dynamics NAV subscription licenses (rental licenses)
• Adjustment of rate for Enhancement Plans from 17% to 18% (for existing customers from Renewal Date)
• Gradual reduction of the existing customer discount for Subscription licenses (in the first step to 10%), which run at a reduced rate with the addition of "on-Azure".

Change in on-premises licensing

It will no longer be possible for new customers to purchase Dynamics 365 Business Central on-premises perpetual licenses (purchase licenses) starting April 1, 2025. However, it does not mean that Dynamics 365 Business Central on-premises deployment will be discontinued altogether. Only purchase-per-purchase will be discontinued in two years for new customers. Dynamics 365 Business Central on-premises subscription licenses (rental licenses) will continue to be available, so Dynamics 365 Business Central on-premises subscriptions will remain. In addition, licensing will continue for existing customers with active enhancement plans.

 

What's next

Microsoft has been focusing on its cloud-first strategy for some time, and these changes reinforce that focus. On-premises licensing will remain (for now). Only the purchase option will be eliminated in two years. We recommend interested or new customers to go directly to the cloud version of Dynamics 365 Business Central. Existing customers should at least consider a cloud migration in the long term. We also recommend the Microsoft promotion Bridge to the Cloud 2, which offers an inexpensive opportunity to try out the Business Central Cloud. We would be happy to advise you individually, contact our experts now.

 

Do you have any questions about your licenses and the price adjustments mentioned? Our experts will be happy to advise you.

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