Where are Microsoft going with the Dynamics NAV license pricing?

I just read Vjekoslav Babic’s post Licensing Model Changes for Microsoft Dynamics NAV 2013 on http://msdynamicsworld.com. As of today October 1st. 2012 Microsoft are changing the licensing model for Dynamics NAV and Dynamics GP. They are introducing a new license price model with the Starter Pack and the Extended Packs replacing the BRL (Business Readly Licensing) BE (Business Essentials) and AM (Advanced Management) licensing. Microsoft is calling the new model for “Perpetual Licensing for Microsoft Dynamics GP 2013 and Microsoft Dynamics NAV 2013” you can read more about the details in Vjeko’s post or on Microsoft’s partnersouce site.

Personally I'm very puzzled about the message Microsoft are sending with this new pricing. For the last years the message has been that Microsoft Dynamics NAV should be for the smaller customers and Microsoft Dynamics AX for the large customers.

But I just don’t see how this new licensing can make Dynamics NAV more accessible for smaller companies? For the real small ones with only one or two users it’s even more expensive, especially if you only need a bit of the more “advanced” functionality (but none of the modules you previously had to buy on the AM licensing).

And since they have also no longer the "waterfall" discount when you are buying more then 10, then 25 etc. users then Dynamics NAV is also becoming more expensive for larger companies (on less of course a large number of their users really can manage with one of the new “Limited User” licenses)!

Cheaper Dynamics AX?

On the NAV Tech Days last week I was talking to some consultants telling me that Dynamics AX licenses now with the new pricing in many situations are cheaper than NAV and that it surely didn’t help them selling to neither small nor mid-sized companies in their countries.

I’m sure Microsoft have thought this well over.

Is SPLA licensing the answer?

So maybe what they planning are to lowering the pricing on SPLA licensing. SPLA is the program where you don’t buy your license, but instead pay an monthly fee per user in a cloud hosting center. I have not found any official updates from Microsoft in that direction. Even though many Microsoft employees were at the NAV Tech Days last week, then they were all from the Microsoft Development Center in Copenhagen. That’s all our wonderful product developers, and where they know everything about the product, then they know almost nothing about licensing and sales and so. But what I did hear (and not form anyone at Microsoft and therefor not even slightly confirmed) was that SPLA pricing was to be increased with 65%! Hope that we’ll be able to get the SPLA license pricing confirmed soon.

I’ll promise to post an update when I hear about it.

Comment List
  • Hi Erik,

    I read your post as from end of 2013 on we won't be able to buy NAV 2009 licenses anymore, correct? And if I buy a NAV 2013 R2 license and run it with a NAV 2009 DB that would be illegal? Can you elaborate on that? Maybe give me a source?

    Thanks in advance,

    Jan

  • Hi Jan,

    That is correct. After December 31st, you can no longer buy 2009 licenses. And you cannot even run a NAV 2009 with a NAV 2013 R2 license, and even if you could, then you may only run the version for which it has been purchased - see the blog post I made today. The source is the licensing terms from Microsoft. Even running a NAV 2013 with a NAV 2013 R2 license is illegal (unless you have a technical reason for not being able to do it).

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