Dynamics 365 Business Central on-premise: licensing changes

As you already know, today Microsoft has officially launched the general availability of Microsoft Dynamics 365 Business Central on-premise.

This release introduces also an important change regarding licensing. As usual, we have two main licensing types:

  • Perpetual Licensing: you license the software with permanent usage rights.
  • Subscription Licensing: you license non-perpetual rights to use the software, meaning you can use the software only during the term of the agreement secured by periodic payments.

The news is that Dynamics 365 Business Central on-premises offers two types of access licenses for internal users: Named Client Access Licenses (CALs), only available under the Perpetual Licensing model, and User Subscription Access Licenses (SALs), only available under the Subscription Licensing model.

Named CALs are assigned on a “named user” basis, meaning each user requires a separate User License; Named user licenses cannot be shared but an individual with a named user license may access the service through multiple devices.


What does it mean? That you don’t have to pay any more for concurrent users like in Dynamics NAV. Your customer has N users that needs to access Dynamics 365 Business Central? Now you pay for N users (they must be named licensed in the application). More easy to predict how many licenses you need (and aligned with the cloud version), but maybe not always the best choice for some scenarios…

External Users does not need CALs (and they cannot use any clients provided by the Dynamics 365 Business Central platform).

More informations on the official Licensing Guide.

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