Microsoft Dynamics 365 is set for a major price hike

Microsoft Dynamics 365 is set for a major price hike

Monthly subscriptions to the CRM software are to rise by 11.5% on average - with Microsoft arguing the new feature set makes it worth it.

Published on 16th April 2024

Microsoft has revealed its first Dynamics 365 price hike in five years, and while users may have been exempt from such increases in the troubling economic times that followed the pandemic, they’re about to be hit by some pretty big jumps in monthly costs.

In a blog post announcing the changes, Bryan Goode Corporate VP for Business Applications and Platform, said that Dynamics 365 has transformed customer relationship management (CRM) and enterprise resource planning (ERP) processes.

Across the 12 pricing categories, Microsoft has applied an average increase of 11.5%, with Microsoft Dynamics 365 Commerce seeing the biggest jump of 16.7%.

Dynamics 365 price rises

Over the years, Microsoft Dynamics 365 has seen new features and enhancements introduced, making the suite more powerful than it was this time five years ago. It’s likely to be a combination of this and rising costs globally contributing to the more expensive plans.

In a separate post disclosing the new prices, Goode confirmed that on-prem products will see the same percentage increases, and that some product pricing will remain unchanged.

Goode also confirmed that new and existing customers (renewing after the changes come into force) will be faced with the higher prices. The change, set to be applied from October 1, 2024, will coincide with a 10% rise in US government list prices, which Microsoft says is “to comply with local regulations.”

“Another smaller increase” will also be introduced one year later, on October 1, 2025.

Microsoft also claims that, besides wanting to provide the best value for customers, customers are unlocking their own value with the help of Copilot for Dynamics 365 – one of the first real-world use cases of generative AI outside of generic chatbot instances.

Full details of the upcoming changes can be viewed on a dedicated web page.


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