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Ultimate Guide To Understand Microsoft Dynamics 365 Business Central Pricing

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Introduction to Microsoft Dynamics 365 Business Central

As the newest ERP offering for small and mid-sized businesses, Microsoft Dynamics 365 Business Central combines wide array of functionalities and capabilities across operations, finance, project management and sales. With Dynamics 365 Business Central, Microsoft has brought full NAV functionality to a SaaS (Software-as-a-Service) environment, enabling organizations with very tight budget to leverage digital transformation. Apart from availability as “SaaS”, Dynamics 365 Business Central supports deployment across private cloud, on-premises and hybrid deployment options. With this flexibility, Business Central ensures organizations to use the deployment option as per their specific business needs. As D365 Business Central is built on functionality from Dynamics NAV, it can easily be customized with familiar Microsoft applications such as Office 365, Microsoft Flow, Power BI and PowerApps. The flexibility to customization also enables Business Central to adapt to continuously changing business needs.

Customization Capabilities of Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central is built-on common data model (CDM). CDM is shared data language consists of standardized, extensible data schemas published by Microsoft. Dynamics 365 Business Central “pool” or “centralizes” data generated by disparate programs and applications such as Office 365, third-party sources, etc to deliver a complete picture of business. CDM eliminates the complexities that come while sharing data from disparate systems as there is no standard condition to agree on, getting data from separate apps to mesh or to get data from application that can easily be understood by other.

With CDM, apps can be integrated and data can be shared without the need for extensive, custom integration by creating a centralized point where systems can come together and connect. Thus, CDM in Business Central bridges the gap between repositories of information. With standard definitions, or “entities”, apps can recognize, understand, and communicate the information held in the Common Data Model’s “data lake”. CDM offers great flexibility to organizations that use or create custom applications.

With CDM in Dynamics 365 Business Central, business applications from Microsoft as well as third-party apps and services can easily and seamlessly communicate with each other. Thus, you can heavily exploit the customization and integration capabilities of Microsoft Dynamics 365 Business Central to meet the unique business needs. Banking on these capabilities, Dynamics 365 Business Central also enables organizations to upgrade from their entry-level accounting software or legacy ERP system to comprehensive, robust, cloud-based solution to streamline their processes, improve customer relations while enabling growth. Business Central also eliminates the inefficiencies associated with data silos and disparate systems by connecting different aspects of your business.

Microsoft Dynamics 365 Business Central Deployment Options

Dynamics 365 Business Central is available as On-Premise and Software-as-a-Service (SaaS).

On-Premises – This is the most conventional and traditional way of deployment and perfectly suited for organizations such as Financial Services, Banks, etc., that need to follow stringent data privacy compliances or have core competencies across IT. On-premise deployment requires servers and infrastructure alongside storage, air-conditioning, power, maintenance and administration. All this needs to be managed by your IT team. For this, you need “Perpetual License (a one-time cost)”. This deployment option gives you more freedom and control but need high level of IT expertise to keep the system well maintained and secure at all times.

Cloud – With Dynamics 365 Business Central, Microsoft offers you the flexibility to deploy it on the public cloud or on Microsoft Azure Web . In case of cloud deployment, you need to pay overhead expenses of an on-premises solution to your cloud provider. Your cloud provider will manage and maintain your software and data as well as bear the responsibility for updates or security. Another option is to use Microsoft Azure to deploy Business Central. The main benefit associated with this is that Microsoft will manage and maintain all things. Both perpetual and subscription Business Central licenses can be deployed in the cloud, enabling you to log in to your system from any device, anywhere in the world as long, as you have an internet connection. As technology is evolving at a rapid pace, cloud platforms such as Microsoft Azure are worth seriously considering as they offer high scalability.

Software-as-a-service (SAAS) – In this deployment model, you need to pay monthly fee per user while the back end Infrastructure will be managed by Microsoft. This deployment option is very popular as you’re buying the license and hosting with one monthly price. Buying Business Central as a SaaS solution puts all your costs for hosting and licenses on one per user/month rate. SaaS deployment option is perfect for organizations with low IT budget. You don’t have to spend money in setting up servers, infrastructure, IT-teams etc. However, Business Central as SaaS is less flexible and customizable than the on-premise version.

Licensing Model – As far as the licensing is concerned, Microsoft Dynamics 365 Business Central comes as Full User Licensing Model & Team Members Licensing.

Full User License – These user-licenses are perfect for employees whose work requires complete functionality of the application. You can buy “Full User License” for employees who work with sales, customer service, finance, or supply chain management. Full users are licensed per named user base through a Business Central subscription and may be either on the Essentials or Premium version of Business Central.

Team Members – These licenses are perfect for users who may need to consume data or reports from the business system, complete less demanding tasks such as time or expense imports and HR updates. For users that do not require full user functionality, these licenses can be purchased.

Microsoft Dynamics 365 Business Central Editions

Microsoft Dynamics 365 Business Central comes in two editions

  1. Dynamics 365 Business Central Essential

In Essential, users get access to majority of Business Central’s features including Financial Management, Customer Relational Management, Supply Chain Management, Human Resources, & Project Management.

  • Dynamics 365 Business Central Premium

In Premium, you will get all the functionalities available in Essential as well as Service Order Management & Manufacturing.

Users in Business central can also be classified according to the type of license: –

Essentials Functionality User

This is the first level of license and users with this license can use following functions.

1.            Financial Management

2.            Advance Financial

3.            CRM (BC CRM)

4.            Human Resource (BC HR)

5.            Supply chain

6.            Warehouse Management and Inventory

7.            Project Management

8.            Other services

Premium Functionality User

In addition to ‘Essential Functionality’ , this user can also use following modules.

1.            Service order Management

2.            Manufacturing

#   Full Users – Indicates ‘Essential’ / Premium User

#   Team Member – Indicates Additional User

Pricing of Microsoft Dynamics 365 Business Central

As far as Dynamics 365 pricing is concerned, it is based on user licenses. This means that full user license or team member license. Full User License of Essential edition of Business Central costs $70 per named user per month in which you will get functionality across finance, supply chain management, CRM, HR and much more. Full User License of ‘Premium’ version of Business Central costs $100 per named user per month. In this, you will get all the functionality of the Essentials version alongside two additional modules, Service Management and Manufacturing/ Production.

How can we help you?

We are authorized Microsoft Partner Provider that can help you in licensing, implementation, customization, maintenance, & support. If you’re using legacy accounting software or disparate systems, then we can perform your digital transition by bringing you to the cloud with Business Central. We act as virtual extension to your business, helping you with IT services. Our technical team helps in streamlining your business processes to improve efficiency. 

Disclaimer – Actual price may vary, depending on customization, specific requirements, local taxes, etc