1. Business Central Essentials: This tier covers the core functionalities a business would need, including financial management, customer relationship management, project management, supply chain management, and HR functionalities.
Essentials provides a wide range of operational and management capabilities, including:
- Financial Management.
- Human Resources Management.
- AI-Supported Forecasting.
- Customer Relationship Management.
- Project Management.
- Supply Chain Management
- Basic Warehouse Management and Inventory.
2. Business Central Premium: This plan includes everything in the Essentials package, along with advanced features like:
- Service Order Management.
- Manufacturing capabilities.
The pricing for these licenses varies depending on the deployment model (cloud or on-premise) and the number of users.
The primary distinction between the Essentials and Premium tiers lies in the additional features offered in the Premium plan, particularly for businesses that require Service Order Management or Manufacturing capabilities. While Essentials is designed for businesses that need basic operational and management tools, Premium caters to more complex businesses that require advanced functionality to manage their service and production operations.
License Models Subscription vs Perpetual
Microsoft offers both perpetual licensing and subscription licensing for Dynamics 365 Business Central.
Microsoft Dynamics Subscription Licensing: This is licensing the use of software with non-perpetual rights, for a customer to use the software only during the term of the agreement secured by periodic payments. This model lowers initial licensing costs and provides customers with the flexibility to increase or decrease subscription license counts from one subscription term to the next.
Microsoft Dynamics Perpetual Licensing: With Perpetual Licensing, you license the desired solution functionality. With this model, you are reserving the right to use Dynamics BC for however long you like. This means a larger upfront investment for permanent ownership. An annual enhancement fee applies to perpetual licenses.
On-Premise vs Cloud Deployment
Business Central offers flexibility in deployment options—on-premise or cloud-based.
• Cloud: The cloud version is the most popular option, providing users with the ability to access the solution from anywhere, with automatic updates, data security, and scalability managed by Microsoft. The cloud model uses a subscription-based pricing structure.
• On-Premise: This model gives businesses full control over their data and infrastructure. It is ideal for companies that have strict compliance requirements or those that prefer to manage their systems internally. However, on-premise licensing can be more expensive in the long run, as businesses are responsible for system maintenance and updates.
Ownership Models
There are different ownership models for Business Central licenses, typically based on subscription. Business Central is licensed per user, and there are two types of users:
1. Full Users: Employees who require comprehensive access to the system’s functionality.
2. Team Members: Employees who only need limited access to read data and perform minor tasks like expense reporting or managing contacts.
Business Central Partners
Microsoft works with certified partners globally to help businesses adopt Business Central. These partners provide implementation, training, and support services to ensure that the solution is tailored to specific business needs.
Working with a partner is crucial as they provide expertise on best practices and licensing configurations, and help maximize the use of Business Central. You can find certified Business Central partners directly through the Microsoft Partner Center.
Conclusion
Choosing the right licensing option for Microsoft Dynamics 365 Business Central depends on your specific business needs. Whether you opt for the Essentials or Premium license, the on-premise or cloud deployment model, or prefer a subscription-based or perpetual license, Business Central’s flexibility ensures it can adapt to your organization’s growth and operational demands. Work closely with your Microsoft partner to ensure the best fit for your requirements.
