What Microsoft's New Project Service Means for Dynamics 365 PSA

Microsoft is developing a new project management tool that will be built on top of the Common Data Service for Apps called 'Project Service'. 

This will remove overlaps that currently exist between Microsoft's project apps and enable the new product to fully utilise the Power Platform and deliver connected project processes.

It has now announced that Dynamics 365 Project Service Automation (PSA) will be removed from its Business Applications portfolio and merged with Project Online to create the new product. This will see existing PSA capabilities being moved directly into the new Project Service and core Dynamics applications. The 'decoupling' process is expected to occur during July 2019.

No pricing detail has been shared at this stage and a new licensing guide will be published in due course but as we understand it. 

Existing D365 for PSA Customers - purchased before December 2018

From July, active PSA customers who purchased these licences prior to December 2018 will be able to take advantage of the advanced capabilities of Dynamics 365 and the new Project Service at no additional cost.

Project Service Automation Customers - purchased from December 2018

On 7 December 2018, Microsoft revised its licensing terms whereby the current Dynamics 365 for PSA offering only includes access to Project Web App and Project Online Desktop Client*. 

As a result, this licence does not include use rights to Project Online Premium. PSA customers who require the full set of capabilities of the new Project Service will need to purchase this separately upon its release at a discounted rate. Pricing has yet to be announced.

* Project Web App is an online collaborative project, time-sheet, and portfolio management solution, based on the SharePoint platform. Project Online Desktop Client is the fully installed, up-to-date subscription version of the Project desktop application.

New Project Service Automation Customers - from July 2019

PSA customers who purchase Dynamics licenses after 1st July 2019 will not have rights to Project Web App or Project Online Desktop Client, or the new Project service. New customers would need to purchase both a Dynamics subscription and Project Online Premium (or Professional) subscription to be able to access current and future PSA capabilities.


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