October 2019 Licensing Changes for Dynamics 365 & PowerApps

Dynamics 365 Licensing Updates

From 1st October 2019, a series of licensing changes take effect for Dynamics 365 and PowerApps.

These changes have been communicated by Microsoft in separate messages and some of this detail may have been missed so in this post we've highlighted the key points.

If you have any questions or concerns about how these products are licensed we are here to assist. Our team closely follows Microsoft licensing announcements and will be happy to answer your questions to make sure that your organisation is correctly licensed. 

Dynamics 365 Customer Engagement Plan    

Customer Engagement Plan licences are no longer available on new agreements from October 2019. For users who need capabilities across two or more role-based Dynamics apps, a base app licence will be selected and with individual apps licences attached at a reduced rate to reflect usage needs.

Upon existing agreement renewal, administrators will need to transition any users currently licensed with the Customer Engagement Plan to this new model as Plan SKUs will no longer be available.

This may create an immediate subscription saving if some users can be moved from a Plan to a single app that will cover their usage needs. In instances where a single app is attached to the base licence, the total licence cost will be the same rate as a Plan.

Read more about the withdrawal of Customer Engagement Plan licenses.

Portals

The October 2019 release wave includes the general availability of PowerApps Portals that enables organisations to deploy a portal using any Common Data Service environment. This introduces a new portal designer to simplify the process to build and launch new sites which reduces the need for complex coding while still enabling advanced customisations.

Organisations are entitled to deploy multiple production and non-production web portals without needing to licence individual sites. Portal licensing is now metered by external usage through unique logins for authenticated users and/or portal page views for anonymous users.

Existing Dynamics 365 portals will be moved to PowerApps portals. Upon renewal, administrators will need to licence new portal SKUs that cover external usage of deployed portals for logins and/or page views. 

Current Dynamics portal SKUs for additional portals and page views will be removed from price lists after 31 March 2019. Until this time customers will be able to renew these SKUs on the same basis for a further term.

Learn more about how PowerApps Portals are licensed. 

PowerApps & Flow Use Rights

Dynamics 365 Enterprise user licences have historically included full use rights for PowerApps and Microsoft Flow.

From October 2019, these entitlements are more narrowly defined whereby:

  • Dynamics 365 Enterprise app users can continue to run PowerApps with Dynamics environments but running PowerApps apps in other environments will require a dedicated PowerApps licence.
  • An additional Microsoft Flow licence will be required to run flows that do not map to a Dynamics 365 application.

However, existing Dynamics 365 customers receive an extension of existing licensing terms for full PowerApps and Flow use rights for 12 months from 1 October 2019, or following expiry of the current Dynamics subscription term, whichever is longer. 

AI Builder 

As part of the October 2019 release wave (2019 Release Plan 2), AI Builder will be generally available. This enables Dynamics 365, PowerApps and other solutions to be infused with AI capabilities through a low code builder natively integrated with the Common Data Service. Upon launch, this includes templates to create AI models for binary classification, form processing, object detection and text classification. The AI Builder add-on is priced at £377.10+VAT ($500) per month.

Read more about the AI Builder add-on.

Dynamics 365 for Marketing

Previously, organisations licensed with 10 or more Customer Engagement Plan licences received entitlement to Dynamics 365 for Marketing at no additional cost. This included entry-level capacity for up to 2000 marketing contacts which could be increased through an initial mandatory 8000 contact add-on before adding capacity in larger multiples, if needed.

With the withdrawal of Customer Engagement Plan licenses this entitlement is no longer available. However, all Dynamics 365 customers registered with 10 or more App licences will be able to licence the marketing app at a reduced rate with default capacity for as many as 10,000 marketing contacts.

Read more about how Dynamics 365 for Marketing is licensed.    

New PowerApps Plans

New PowerApps Plans available from October 2019 provide access to the full capabilities of PowerApps with the choice of licensing per individual app, or enabling users to run unlimited apps.

These licences provide access to the Microsoft Business Applications platform (Power Platform) and the Common Data Service using the same unified interface as Dynamics 365 and/or creating pixel-perfect mobile apps. These also provide usage rights for the new PowerApps web portals.

PowerApps Plans include full access permissions to many of the standard Dynamics entities and capabilities including accounts, contacts and activities and are available at a lower monthly rate compared to Dynamics 365 Enterprise apps. These 'platform' licences also provide entitlement for users to work with unlimited custom entities and in some scenarios may represent a cost effective alternative to Dynamics 365 Team Member or individual app licences. We will cover PowerApp Plans in more detail in a future post...

Restricted Entities

Changes are also made to restricted and unrestricted entities that determines which data can be accessed using a PowerApps licence without requiring a Dynamics licence. The case entity is now be available to PowerApps and Flow users to create, read, update, and delete. In contrast, the Leads entity is added to the restricted entities list. Usage rights for Lead are now limited to Create/Read for standalone PowerApps or Flow users. Further changes to restricted entities are expected to be announced in October.

API Usage

An upper limit has been announced for the total number of API requests that each user can make across Dynamics 365 apps, PowerApps and Microsoft Flow. Microsoft says this will help to ensure service levels, availability and quality.

API Requests consist of various actions which a user makes across products. These include requests to PowerApps and Flow connectors, standard CRUD operations, share / assign operations, plug-ins, async workflows and custom controls.

Users across the Microsoft Power Platform can use a certain number of requests based on the license they are assigned. The list below shows the amount of requests each user can make within a 24-hour period: 

  • Dynamics 365 Enterprise Applications - 20,000 per user
  • Dynamics 365 Professional Applications - 10,000
  • Dynamics 365 Team Member - 5,000
  • PowerApps Per User Plan - 5,000
  • PowerApps Per App Plan - 1,000

No metering or caps will apply on tenant-wide Flow runs.

Service limits are set against normal usage patterns in both 5-minute and per 24-hour intervals. Microsoft says most users will not reach these.

However, for intensive bulk operations that are set to a dedicated user, additional capacity may needed if licence usage capacity is consistently exceeded. A new SKU will be available to add API request capacity in increments of 10,000 daily calls @ £37.70 per user / month.

It is expected that Microsoft will provide additional telemetry within the admin centre that will help CRM managers and administrators assess existing API request usage on a per user basis. 

Existing Dynamics 365 customers are able to extend existing licensing terms for 12 months from 1 October 2019, or following expiry of the current Dynamics subscription term, whichever is longer. During this period the above new service limits would not apply.

Additional Licensing Updates

Aside from these changes, two Dynamics 365 SKU offers are set to be withdrawn shortly as previously announced:

CRM Online Transitional Offer - these licences were introduced in 2016 enabling Dynamics CRM Online customers to migrate to the Dynamics 365 licensing model and transact at a reduced price. With transitional licensing ending in November 2019, upon renewal these licences will automatically be migrated to the standard commercial licences for Dynamics apps and billed at the regular rate.

Users who are currently licensed with the Customer Engagement Plan on this offer will need to be re-licensed with a base app and, if needed, attach additional licence(s) following the removal of Plan licences as referenced above. 

Dynamics 365 SMB Offer - these promotional licence SKUs will no longer be available for subscriptions renewals from December 2019. On renewal, licences will be migrated to the standard licences and rates. This covers:

  • Dynamics 365 for Sales Enterprise (SMB Offer)
  • Dynamics 365 for Sales and Customer Service, Enterprise Edition (SMB Offer)
  • Dynamics 365 for Team Members (SMB Offer)  

Dynamics 365 Licensing Questions?

Preact is here to answer your questions. We will help you review individual usage needs and match these to the best licences to ensure your organisation is correctly licensed and isn't overpaying for functions that aren't needed. We will also assist in undertaking a wider review to identify Dynamics 365 features and entitlements that you aren't currently using but could quickly create additional benefits.

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