Microsoft Introduces Dynamics 365 SaaS ERP/CRM Combo

Microsoft will introduce Dynamics 365 at the independent Dynamic Communities Summit in Tampa, FL starting next Tuesday, October 11, 2016. Dynamic Communities brings together one of the largest gatherings of Microsoft’s ERP and CRM users for Microsoft Dynamics GP, NAV, AX, and CRM.

Dynamics 365 will reportedly include elements across Microsoft’s diverse business application portfolio including the ERP and CRM products but also with components of Microsoft Office 365, Cortana Intelligence and Power BI and more. Microsoft is also introducing and app store for Dynamics 365 called AppSource.

An article on states that pricing for a business edition has been leaked putting the cost as low as $50 per user per month (other reports put this starter price at $40 per user per month). The article outlines more pre-release details including the components of the Business Edition which includes financials, sales, and marketing only for smaller businesses and the Enterprise Edition which expands to include operations, customer service, field service, and projects for larger businesses.

Regardless of the exact price, if the leaked reports are accurate then the Business Edition is very competitive for financials only with CRM considering that $40 to $50 per user per month is a solid value for a combined ERP/CRM product that will most likely include a lot more functionality than QuickBooks Enterprise hosted which is priced at about $65 to $70 per user/month and will have considerably less manufacturing functionality.

Enterprise Edition pricing will vary by configuration with the Operations plan at $210 per user per month. This seems to us to be in line with other products on the market putting a small 10-user manufacturer at $2,100 per month or about $25,200 per year. This may seem like a lot to some outsiders not familiar with enterprise software pricing models but it’s not bad considering that companies won’t need to invest in expensive servers or licenses for the databases and other underlying application licenses. Further, there is a considerable cost savings by leveraging a hosted platform.

Every ERP vendor has their own variants of cloud pricing but essentially, they all come in around the same price of approximately $25,000 annually for 10 users (some a little more and some a little less).

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