Microsoft Phased Out Dynamics Marketing App, Tiered Pricing of Dynamics 365 Revealed

Microsoft Dynamics Marketing app is being phased out over time, welcome new marketing application "Dynamics 365 for Marketing, Business Edition."

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Dynamics CRM team has announced a new application that will feature improved marketing automation tools and features that harness the power of Azure and are hyper-scalable for customers of all sizes.

In preparation for the new application's debut, Microsoft will discontinue selling the existing app, Microsoft Dynamics Marketing, to new customers as of November 1st of this year. While, the new marketing application called "Dynamics 365 for Marketing" as part of the Dynamics 365, Business Edition, will debut in the spring 2017 release cycle, team writes.

"Dynamics Marketing will be supported until October 31st, 2020 in order to honor and facilitate any renewed Enterprise Agreements," the team said.

The new Marketing application will include tools for modeling customer journeys across marketing and sales, and for managing email marketing, events, landing pages and leads. Additionally, lead management across marketing and sales, and sharing the same Dynamics 365 platform as the Sales app will also include.

Pricing and licensing details will be made available prior to the release. Microsoft Dynamics Marketing customers who wish to transition to the new Dynamics 365 Marketing app should evaluate the solution in spring of 2017 and plan their transition in the following six to 12 months.

Microsoft notes, those who wish to transition to the new Marketing app should evaluate the solution in Spring 2017, and "plan their transition in the following 6 to 12 months."

Pricing and licensing details will be made available prior to release, Dynamic team said, followed by a brief summarization of the methods in which Microsoft Dynamics Marketing can be purchased today: "MOSP (web-direct): Dynamics Marketing licenses purchased directly via Office 365 portal," "CRM Online Enterprise licenses include Dynamics Marketing," "Enterprise Agreements: Dynamics Marketing licenses may have been included within your EA," explained Dynamics team.

In line with support policy, the team notes, existing EA customers or MOSP (web-direct) licenses can request renewal of their existing agreements until October 31st, 2017.

In addition, existing customers can purchase additional seats and Dynamics Marketing add-on capabilities such as additional email messages and data storage until the validity of their agreement.

Furthermore, a few most important points to note:

  • Dynamics Marketing Enterprise purchased directly through MOSP (web-direct) will be able to continue to use Microsoft Dynamics Marketing until the duration of their agreement. "If auto renewal is enabled, Dynamics Marketing Enterprise will be automatically renewed but only until 31st January 2017." Customers may also request their subscriptions renewal through Billing & Subscription support until October 31st, 2017.
  • Customers with an Enterprise Agreement will be able to request renewals based on their individual renewal dates until October 31st, 2017 by working through their assigned Microsoft Solution Sales Professional (SSP) or the Volume Licensing Service Center.
  • Customers who have CRM Online Enterprise licenses that include Microsoft Dynamics Marketing can continue using CRM Online and their existing Microsoft Dynamics Marketing instance throughout the license period.
    • If auto renewal is enabled, CRM Online Enterprise will be automatically renew only until 31st January 2017. This renewal includes the Dynamics Marketing license.
    • For a renewal after this date customers will need to transition the licenses to a Dynamics 365 licensing plan.
    • Microsoft Dynamics Marketing will not be included within the new plan. In this case, customers who had activated Dynamics Marketing should contact Billing & Subscription support to convert and if needed renew the license for their existing Dynamics Marketing instance. Renewal can be requested Billing & Subscription support until October 31st, 2017.

Also, in a post Microsoft notes, that Dynamics 365 will be available in the Cloud Solution Provider program for all Plans and business applications. "There is no minimum except for the Plans or apps that include Operations, which has a 20-user minimum," company writes in a Oct. 16 post.

Further the team notes, Dynamics 365 introduces the benefit of lower marginal cost per unit as user counts increase on select subscriptions. Microsoft's Dynamics 365 licensing and pricing scheme include two editions:

  • Business and Enterprise,
  • two user subscription options by (user and application)
  • two subscription types (full and light)
  • and two Plans for Enterprise (P1 and P2).

"Tiered pricing applies to Enterprise edition Plan 1 and Team Members, Enterprise Edition," Dynamics team writes. Adding, there are no price tiers on Enterprise edition Plan 2, "the Plan 2 subscription counts toward Plan 1 price tiers levels." "Plan 2 will be most applicable for users who need both Operations and a Plan 1 application or PowerApps," the team said.

Also there will be a tiered pricing coming with Microsoft's hybrid CRM + ERP suite, "which will reward users with more seats with lower prices per user," reports MJFoly.

The Business Edition SKU will cost $50 per user per month, with the Financials app it's priced at $40 per user per month standalone. While, Enterprise Plan 1 will be priced at $115 per user per month, and Plan 2 is priced at $210 per user per month. "All individual apps will cost $95 each in these plans."

Benefits of Dynamics 365 licensing model

Dynamics 365 Business Edition

Dynamics 365 Enterprise Pricing

According to Microsoft's latest Dynamics 365 FAQs (verbatim):

  • "Starting November 1, brand-new Dynamics Online customers (CRM and ERP) will only be able to get Dynamics 365. Dynamics CRM Online and the online ERP offerings from Microsoft won't be available to first-time customers.
  • Existing Dynamics customers can continue to use their existing Dynamics CRM and ERP) offerings if desired, but at renewal, must transition to Dynamics 365 SKUs
  • There will be a "20% Switcher" offer for new customers switching from Salesforce, SAP or Oracle to Dynamics 365 plans.For existing ucstomers, there will be "transition offers" meant to blunt and/or eliminate the impact on Dynamics CRM Online users of the new Dynamics 365 pricing
  • Current CRM Online and Dynamics AX SKUs will be removed from pricelists on November 1, and all new customer purchases after November 1 will be on Dynamics 365 SKUs. Dynamics CRM seemingly will be renamed Dynamics 365 on-premises.
  • Existing customers who want to stay on-premises still will be able to buy Dynamics CRM, AX, NAV, GP and SLwith Software Assurance. But as of October 2016, "no CRM on-premises licenses will be sold to new customers in DPL (Dynamics Price List)," via ZDNet.