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Korcomptenz - Total Transformation Blog - Microsoft Dynamics 365 is a full life cycle ERP. Can a SMB afford it?
The Simple answer is YES. The Dynamics 365 suite of products is Microsoft's answer to SMBs ready for a full life cycle ERP, organizations that want to manage their internal process more efficiently. This will make SMBs deliver their products and/or services to their customers on-time, on-budget and with better profit margins..
Also, Dynamics 365 is an online ERP. No more capital expenditures on hardware and software are needed. No on-going resource costs to manage server hardware. This also saves money on unseen items like electricity, enterprise grade Internet Connection, UPS Batteries, etc. to make the ERP available 24x7, plus the regular server hardware refresh cycles, warranty, etc.
Read more about the comparison between hosting critical applications on-premises versus our Azure Cloud Solutions.
The Microsoft Dynamics 365 Suite of products comes in 3 versions. At a very high level, the versions are segregated by the different modules that come packaged together.
The primary licensing is by internal named user subscription. Microsoft Dynamics 365 user subscriptions classify users into three types, "full users", "additional users" and "external users". Here is a rundown of what this means:
1. Full users are those whose work requires use of the feature rich business applications functionality.
2. Additional users (also termed as Team Members) often represent a large percentage of users in an organization. They may consume data or reports from line of business systems, complete light tasks like time or expense entry and HR record updates or be heavier users of the system, but not require full user capabilities. These additional users are licensed with Dynamics 365 Business Central Team Members.
3. External users are end customers and third-party users of the organization or its affiliates and do not require SLs to access Microsoft Dynamics 365. External user access is included with the organization's internal user Subscriber Licenses.
External users include off-site vendors not on an employee-like relationship with the organization or its affiliates (e.g. IT help desk support vendors serving multiple customer organizations).
External user access does not extend to the customer or the customer's affiliate's contractors, vendors, or agents providing business processes on the customer's behalf or using Microsoft Dynamics 365 to manage any portions of their business.
4. Customers who have external accountants who wish to connect to the Dynamics 365 Business Central application can purchase one license at no additional cost. External Accountant Licenses contain all the same use rights as Dynamics 365 Business Central license except for the following: Access to user set up or admin tasks and any other Dynamics 365 application.
Pricing is accurate as of May 2018
A Small Business is looking to manage their Employee Details, Financials, Inventory, Customer Records. This company will execute their activates as Projects and store their products in a warehouse and also need to have a better management on supply chain management. They outsource all their Manufacturing operations.
CEO -1, CFO-1, Accounting Staff – 2, Production Manager – 1, Supply Chain Manger -1, Shipping Staff – 1 Customer Service Staff -2, Inventory Staff – 1, Admin Assistant – 1
Dynamics 365 Business Central Essentials
Business Essentials Full User:07
Business Essentials Team Members: 04 (Customer Service, Inventory and Admin Assistant)
Total Monthly Cost:($70 X 7) + ($8 X 4) = $522
For detailed functionality available under each module, please refer to our Business Central Modules Blog
A Medium Business is looking to manage their Employee Details, Financials, Inventory, Customer Records and Manufacturing. This company will execute their activates as Projects and store their products in a warehouse and also need to have a better handle on supply chain management. They have in-house Manufacturing operations for most of the product lifecycle.
CEO -1, CFO-1, Accounting Staff – 2, Production Manager – 1, Supply Chain Manger -1, Production Staff – 4, Shipping Staff – 1, Customer Service Staff -2, Inventory Staff – 1, Admin Assistant – 1
Dynamics 365 Business Central Premium
Business Essentials Full User:12
Total Monthly Cost:($100 X 12) + ($8 X 4) = $1,232
SMB that does not fall under previous 2 versions will qualify for this version. There are multiple ways to license this version. To make this simple, Microsoft named them after the core modules that are packaged together. There is also A-La-Carte option to choose.
First Let's see the User Licensing types that Microsoft provides to save money but still get to use the ERP affectively.
1. Full Users – This is same as Business Central as explained above. Examples of full users are sales people, customer service representatives, finance employees, controllers and supply chain managers.
2. Additional users often represent a large percentage of users in an organization and may consume data or reports from line of business systems, complete light tasks like time or expense entry and HR record updates or be heavier users of the system, but not require full user capabilities. These additional users are licensed with Team Members, Activity or Device User.
For detailed functionality available under each module, please refer to our Enterprise Modules Blog.
Explore our Microsoft Dynamics services with the help of an experienced Microsoft Dynamics specialist from Korcomptenz. Contact us today for a consultation to address your unique needs.
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