News: 1713162905

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Microsoft hikes Dynamics 365 prices by around ten percent or more

(2024/04/15)


Microsoft has foreshadowed significant price rises for its Dynamics 365 cloudy business applications.

Microsoft's corporate veep for Business Applications and Platform, Bryan Goode, [1]announced the change last Friday, and justified the price rises on grounds that "each year, we release hundreds of new features and enhancements."

Goode singled out "AI-powered, real-time customer insights for marketers, sellers, and service agents; as well as … optimizing operations and mission-critical processes with data insights, supply chain visibility, and end-to-end automation of financial processes" as improvements that make a price rise reasonable.

[2]

A [3]list of price changes details increases of between 9.26 percent and 16.67 percent.

[4]

[5]

That's less than cumulative inflation over the last five years, and for some Dynamics 365 products a bigger increase than that [6]introduced by Salesforce in 2023.

The new prices come into effect on October 1, 2024 – meaning users have almost half a year prepare for the whack to their wallets.

[7]

Here's the list of changes:

Dynamics 365 product

Price before October 1, 2024

Price as of October 1, 2024

Percent increase

Sales Enterprise

$95

$105

10.53

Sales Device

$145

$160

10.34

Sales Premium

$135

$150

11.11

Relationship Sale

$162

$177

9.26

Customer Service Enterprise

$95

$105

10.53

Customer Service Device

$145

$160

10.34

Field Service

$95

$105

10.53

Field Service Device

$145

$160

10.34

Finance

$180

$210

16.67

Supply Chain Management

$180

$210

16.67

Commerce

$180

$210

16.67

Human Resources

$120

$135

12.50

Project Operations

$120

$135

12.50

Operations – Device

$75

$85

13.33

Microsoft's posts don't explain why some prices increase more than others.

But the two posts we've linked to above – and [8]another on the news feed Microsoft offers its channel partners – reveal the price rise will be staggered for US government users.

"To comply with local regulations, US Government list prices for the same products will increase by 10 percent effective October 1, 2024, followed by another smaller increase effective October 1, 2025, to bring parity with commercial pricing outlined in this article," the post states.

Goode's post suggests those who read it visit Microsoft's [9]Dynamics 365 Release Planner to learn of the new features coming to the platform.

[10]

When The Register read it, the document listed seven upcoming features – among them two that add Copilot facilities, and one described as "select columns downloaded on mobile device" – plus four features due later in April and 22 added since October 2023. ®

Get our [11]Tech Resources



[1] https://cloudblogs.microsoft.com/dynamics365/bdm/2024/04/12/new-pricing-for-microsoft-dynamics-365-effective-october-2024-2/

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Zhz6viDzx9FxbJkKV2BNOQAAAFM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[3] https://cloudblogs.microsoft.com/dynamics365/bdm/2024/04/12/new-pricing-for-microsoft-dynamics-365-effective-october-2024/

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zhz6viDzx9FxbJkKV2BNOQAAAFM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Zhz6viDzx9FxbJkKV2BNOQAAAFM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[6] https://www.theregister.com/2023/07/12/salesforce_increases_saas_prices

[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zhz6viDzx9FxbJkKV2BNOQAAAFM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[8] https://learn.microsoft.com/en-gb/partner-center/announcements/2024-april#9

[9] https://releaseplans.microsoft.com/en-US/?app=Power+Apps

[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Zhz6viDzx9FxbJkKV2BNOQAAAFM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[11] https://whitepapers.theregister.com/



"each year, we release hundreds of new features and enhancements"

Mishak

Oh, that "reason". What about those who don't want or need these "improvements"?

Boston Dynamics 365

Neil Barnes

Spend more on our software or we'll send a robot dog to bite you!

/me wonders if there are still any dog treats in the pockets? --->

Korev

First rise in five years varies between 9.26 and 16.67 percent for different products – for no apparent reason

"So we can make even more money" is a valid reason (at least from MS' point of view)

Own nothing and be happy

Jellied Eel

When tech started pushing 'SaaS' and cloudybollocks, they just neglected to mention who would be getting Serviced. Get your customers hooked, steadily jack up the prices, and make migrating your data away virtually impossible. It's just highly polished ransomware.

Anonymous Coward

... – for no apparent reason ...

Really?

There are reasons for everything, always.

Like any other corporation they do it because they can .

Nothing new here, it has been going on since the advent of commerce.

But they can because they have, thanks to very loose or inexistent anti-monopoly regulations and incompetent/blind/corrupt regulators and government officials, managed to corner their market.

In this specific case, because boatloads of AH beancounters and DH marketing droids convinced greedy CxOs/shareholders that SaaS was actually a good/convenient thing to deploy, that it was cheaper to run and maintain, would need less employee expenditure leading to lower operating costs and thus allow higher dividends.

So much for no apparent reason .

.

It's not hard to admit errors that are [only] cosmetically wrong.
-- J. K. Galbraith