If you’re looking for a comprehensive and flexible business management solution for your organization, Microsoft Dynamics Business Central may be the right choice for you. This cloud-based enterprise resource planning (ERP) system provides a range of features and functionality to help you streamline your business operations, from financial management to supply chain management and beyond.
One of the most important considerations when evaluating BC is the pricing and licensing structure. In this blog post, we’ll take a closer look at how Business Central pricing works and what you need to know to make an informed decision.
Understanding Business Central Licensing
Before we dive into the pricing details, it’s important to understand the licensing model used by BC. Microsoft offers two types of licenses for Business Central: Essentials and Premium.
The Essentials license provides core functionality for financial management, sales and purchasing, inventory management, project management, and basic human resources management. The Premium license includes all of the functionality in the Essentials license, plus manufacturing and service management capabilities.
In addition to these two main licenses, Microsoft also offers a Team Member license. This license is designed for users who only need limited access to BC, such as for time and expense entry or basic inquiry and reporting.
Business Central Pricing
Now let’s take a closer look at how Dynamics 365 Business Central Pricing works. The cost of Business Central varies depending on a few factors, including the licensing model you choose, the number of users you need, and whether you opt for an on-premises or cloud-based deployment.
Cloud-Based Pricing
For cloud-based deployments, Business Central pricing is based on a per-user, per-month subscription model. The current pricing for Business Central as of September 2021 is as follows:
- Essentials: $70/user/month
- Premium: $100/user/month
- Team Member: $8/user/month
Keep in mind that these prices are subject to change, so it’s always a good idea to check with Microsoft for the most up-to-date pricing information.
On-Premises Pricing
If you prefer an on-premises deployment of Business Central, you can purchase perpetual licenses rather than subscribing to the cloud-based model. Perpetual licensing allows you to purchase a license for a one-time fee and use the software indefinitely.
The current pricing for perpetual licenses of BC as of September 2021 is as follows:
- Essentials: $8,000 for the first concurrent user, $3,000 for each additional concurrent user
- Premium: $10,000 for the first concurrent user, $3,500 for each additional concurrent user
- Team Member: $3,000 for the first concurrent user, $600 for each additional concurrent user
It’s worth noting that perpetual licensing also requires the purchase of a Business Central Enhancement Plan, which provides access to software updates, technical support, and other benefits. The cost of the Enhancement Plan is 16% of the license cost per year.
Factors to Consider When Evaluating Business Central Pricing
When evaluating Business Central pricing, there are several factors to consider to determine which licensing model and pricing structure is right for your organization. Here are a few key considerations:
- Functionality Needs: Which BC license you choose will depend on the specific functionality your organization requires. Consider your current and future needs when evaluating the Essentials and Premium licenses.
- Number of Users: The number of users you need will impact the total cost of your Business Central deployment. Remember that the cost is based on a per-user, per-month or per-concurrent-user basis.
- Deployment Model: Whether you choose a cloud-based or on-premises deployment will impact the cost of your BC deployment. Cloud-based deployments require a monthly subscription fee, while on-premises deployments require a one-time perpetual license fee.
- Budget: Of course, budget is always a factor to consider. Cloud-based pricing can be more flexible and easier to budget for, as it involves a predictable monthly subscription fee. On the other hand, perpetual licensing can require a larger upfront investment, but may ultimately be more cost-effective in the long run.
- Maintenance and Support: Maintenance and support costs should also be factored into your evaluation of Business Central pricing. Cloud-based subscriptions include ongoing software updates and technical support, while perpetual licensing requires the purchase of an Enhancement Plan for ongoing support and updates.
- Integration Needs: If you plan to integrate BC with other systems or applications, be sure to consider the potential costs and complexities involved in these integrations. Depending on your specific needs, you may require additional licensing or customization.
Final Thoughts
Microsoft Dynamics 365 Business Central offers a robust and flexible ERP solution for organizations of all sizes. When evaluating Business Central pricing and licensing, it’s important to carefully consider your organization’s specific needs and budget, as well as the various deployment and support options available.
Ultimately, the right licensing model and pricing structure will depend on your organization’s unique requirements and goals. By carefully evaluating your options and working with a trusted Microsoft Dynamics Partner or consultant, you can ensure that you choose the best solution for your business.
