- Microsoft Dynamics 365 has announced its first price hike in five years.
- The average increase is 11.5% across 12 pricing categories, with Dynamics 365 Commerce seeing the largest jump at 16.7%.
- The new prices are set to take effect from October 1, 2024, with additional increases planned for October 1, 2025.
In a recent announcement, Microsoft has shaken up the world of business software by revealing significant price increases for its Dynamics 365 suite. This marks the first price hike in five years, and it’s set to impact users across the board.
Bryan Goode, Corporate VP for Business Applications and Platform at Microsoft, highlighted the transformative impact Dynamics 365 has had on customer relationship management (CRM) and enterprise resource planning (ERP) processes.
However, this transformation comes with a cost, as Microsoft has applied an average increase of 11.5% across its 12 pricing categories. The biggest jump is in Dynamics 365 Commerce, which will see a staggering increase of 16.7%.
Microsoft points to the continuous evolution of Dynamics 365, with new features and enhancements making the suite more powerful than ever before. Additionally, rising global costs likely play a role in the decision to adjust pricing.
It’s important to note that these price hikes will affect both cloud-based and on-premises products. While some product pricing will remain unchanged, new and existing customers renewing their subscriptions after October 1, 2024, will face higher prices.
But the changes don’t stop there. Microsoft is also adjusting its US government list prices by 10% to comply with local regulations. And if that wasn’t enough, another increase is planned for October 1, 2025.
Despite the sticker shock, Microsoft assures customers that they’re committed to providing the best value. They cite examples like Copilot for Dynamics 365, which utilizes generative AI to unlock additional value for users.
For businesses relying on Dynamics 365, these price increases may require careful budget planning and evaluation of alternatives. Whether the added features justify the higher costs remains to be seen, but one thing is certain: change is coming to the Dynamics 365 ecosystem.
