Back in April 2023, Microsoft announced changes to the availability and pricing of some on-premises products and licenses (see News). At the beginning of April this year, Microsoft also published changes that will come into effect from October 2024. This underlines Microsoft's cloud strategy and the prioritization of online subscriptions over on-premises solutions with an enhancement plan (update contract).
Change in the on-premises pricing
Microsoft has announced the following price adjustments as of October 1, 2024:
Microsoft has announced these increases subject to change. We will not be able to quantify the new conditions until the binding publication. Please be prepared for these conditions to come into effect from October 2024.
Adjustment Rate Enhancement Plan
The following change will also come into effect on October 1, 2024:
This announcement is binding and will affect all active Enhancement Plans with a renewal date after October 1, 2024.
Reminder: Termination of on-premises licensing for new customers as of April 2025
We would like to remind you of last year's discontinuation of the purchase option for new customers of on-premises licenses with the associated update fee. From April 1, 2025, it will no longer be possible to acquire Dynamics 365 Business Central On-Premises Perpetual as a purchase license. From this date, new customers will only be able to choose between two subscription models: On-Premises Subscription (for an on-premises installation) or online licensing with so-called Dual Use Rights (optional use online and/or on-premises).
For existing customers with an active and ongoing enhancement plan, it will still be possible to book enhancements in their existing license.
What happens next?
Microsoft is focusing on the cloud-first strategy, and these changes underpin this direction. On-premises licensing will remain in place for existing customers. A purchase option for new customers will no longer be available in one year. We recommend that interested parties and new customers switch 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 questions about your licenses and the price adjustments mentioned? Our experts will be happy to advise you.
