Microsoft Dynamics 365 Licencing Changes – What you should know

Nov 18 2018
Stone Forest IT
D365 Licence updates


Microsoft made a series of licencing changes for Dynamics 365, effective from 1 October 2019. Below is a summary of the key highlights: 


1. Discontinuation of Dynamics 365 Customer Engagement Plan

The plan allowed each user to access multiple applications at a single price point.

Now, a Base licence is required for each user. Offered at standard price, this base licence is role-based e.g. Dynamics 365 for Sales for a sales employee. If this employee also works in other business areas like customer service, you can additional purchase “Attach” licences at a fraction of the standard price.     

licences diagram



2. Dynamics 365 for Marketing

All Dynamics 365 customers registered with 10 or more application licences will license the marketing app at a reduced rate with default capacity for as many as 10,000 marketing contacts.

Previously, this came with no additional cost and an entry-level capacity for up to 2000 marketing contacts.



>> What does this mean for you

  • Essentially, this change means you now can selectively purchase the Dynamics 365 business applications that are most relevant for your business, whenever you need them.

  • This may offer subscription savings by moving from a fixed plan to a licencing model based on usage needs.

  • There will be no change to your existing Dynamics 365 contract until one year have passed since your initial purchase. The new licencing model will be applied upon renewal or purchase of new licences.  

  • Existing SFIT Microsoft Dynamics 365 clients will be issued an addendum to project contracts to reflect these changes.




Based on your organisational usage, we will review and match these to identify the best possible combination you need. Taking a step further, we can also provide a deeper review to uncover untapped features and entitlements to create immediate benefits for your business. 

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