Microsoft Dynamics 365 Licensing

If you are implementing Microsoft Dynamics 365 and want to check licensing costs or are looking to reduce your user licensing costs, Preact is here to help.

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Confused by Dynamics 365 licensing?

Gain clarity across Dynamics 365 Sales and Service app, Team Member licences and Power Apps Plans.

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Are you overpaying for Dynamics 365 licences?

Request a license check from Preact to ensure your users are correctly licensed for only what they need.

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Want to buy Dynamics 365 licenses?

Speak to our licensing experts to add the right licenses to a new or existing Dynamics 365 deployment.

Dynamics 365 Licensing Check

You can buy Dynamics 365 licenses through Preact and receive ongoing support. We are part of Microsoft’s CSP (Cloud Solution Provider) program that builds long term partnerships between clients and trusted providers for Microsoft solutions and services.

By choosing Preact as your CSP partner, we offer the following benefits:

  • Preferential subscription rates for our Elevate 365 managed service
  • Free Dynamics 365 licensing check to confirm the correct licence types for each user by reviewing actual usage across your Dynamics environment. As part of this check, we'll help you to fix any licensing compliance issues and identify savings if some users are on an old agreement, or paying for features they don’t need.

Request a call back now to discuss your Dynamics 365 licensing requirements, to request a quote for additional licences, or to arrange a free licensing check.

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How is Dynamics 365 Licensed?

Dynamics 365 consists of role-based apps which cover specific business processes. These are licensed per user/month, except Dynamics 365 for Marketing which is licensed per tenant (Tenants are unique sections of your organisation split by defining characteristics like region, language or specialism).

With Dynamics 365, you can start with a base app and attach additional apps at a reduced rate for any usage needs that require multiple apps. Choose between full Enterprise or Professional capabilities for Dynamics 365 Sales and Customer Service apps.

How much are Dynamics 365 Base licences?

All base licence prices shown below are per user / month

Dynamics 365 Sales Enterprise

@ £71.60

Dynamics 365 Sales Professional

@ £49.00

Dynamics 365 Customer Service Enterprise

@ £71.60

Dynamics 365 Customer Service Professional

@ £37.70

Dynamics 365 Field Service

@ £71.60

Dynamics 365 Marketing

D365 for Marketing is a tenant licence. See FAQs below

How much are Dynamics 365 Attach licences?

Dynamics 365 attach licences are priced at £15.10 per user / month for individual users whose needs cannot be met with a single app.

The following are available for licence attachment:

  • Dynamics 365 Sales Enterprise
  • Dynamics 365 Sales Professional
  • Dynamics 365 Customer Service Enterprise
  • Dynamics 365 Customer Service Professional
  • Dynamics 365 Field Service

Dynamics 365 attach licence requirements:

  • Each user may only have one base Dynamics 365 licence.
  • Administrators can only assign attached licences if a user has a valid base licence.
  • Customer Service Professional and Customer Service Enterprise, or Sales Professional and Sales Enterprise cannot be mixed and matched on the same Dynamics environment.
  • Sales Professional cannot be purchased as an attachment to a Customer Service Professional base
  • Where a Professional licence is selected as a base licence an Enterprise or Field Service licence cannot be attached.
  • When purchasing multiple apps, the base licence must be the highest priced licence.

How much is Dynamics 365 for charities and non-profits?

Charity and non-profit organisations can benefit from Microsoft's Tech for Social Impact program which provides reduced licensed rates across its business applications.

Base Licence

@ £17.90 per user / month

Choose from: Dynamics 365 Sales, Customer Service or Field Service

Attach Licence

@ £3.80 per app / user / month

Add additional functionality to a base application

Dynamics 365 Marketing

@ £282.80 per tenant / month

Team Member

@ £1.51 per user / month

View any data in Dynamics and perform light usage tasks

Further Dynamics 365 Licensing FAQs

Dynamics 365 Online data is stored in Microsoft Dataverse. The following default capacities are available:

  • Dataverse for Apps Database: 10 GB (Transactional database storage for entity definitions and record data)
  • Dataverse for Apps File: 20 GB (For storing attachments on emails and notes in Dynamics 365 apps, including PDF and image files)
  • Dataverse for Apps Log: 2 GB (Audit logs to track records and attribute data changes)

Additional storage entitlements are accrued for each D365 Enterprise user licence as follows*:

  • Dataverse for Apps Database Capacity: @ 250 MB per user
  • Dataverse for Apps File Capacity: @ 2 GB per user
  • Dataverse for Apps Log Capacity: n/a

* Include D365 Sales Enterprise, Customer Service Enterprise, and Field Service licences.

Storage capacities and current usage are managed in the Power Platform Admin Centre.

Notifications are triggered when a tenant has less than 15% of space available across its three storage capacities. If capacity is exceeded, a user will not be able to copy, restore, create or recover an environment.

Reporting in the Power Platform Admin Center gives administrators a detailed view of the storage capacity entitlement and utilisation. Administrators will receive notifications if storage limits are approached or exceeded.

Extra capacity can be added by purchasing platform capacity add-ons:

  • Dataverse Database Capacity @ £30.20 per GB
  • Dataverse Apps File Capacity @ £1.50 per GB
  • Dataverse Apps Log Capacity @ £7.50 per GB

Both licences allow sellers to create and manage: Leads, Opportunities, Accounts, Contacts, Activities, Campaigns, Marketing Lists, Products, Price Lists, Quotes, Orders and Dashboards.

Each licence type also includes basic case creation capabilities and capabilities to connect Dynamics 365 with Outlook, Microsoft Teams, Excel and Power BI.

Sales Enterprise users have entitlement to work across unlimited custom tables (entities), but Sales Professional is limited to a maximum of 15 custom tables which can be created and modified in a Dynamics environment.

Sales Pro is also subject to the following capacities:

  • Guided process flows - 5 maximum
  • Forms and Views - 2 maximum per entity
  • System Charts & Dashboards - 5 maximum
  • Queues - 15 maximum

D365 Sales Enterprise is not subject to any of the above usage capacities.

Sales Hub functions and services that are not available to Sales Pro users include sales goals, territory management, forecasting, product families, knowledge base, embedded intelligence and business units.

At the tenant level, Sales Professional licences receive the same default cloud storage entitlements compared to Sales Enterprise, but Sales Pro licences do not accrue additional storage capacity on a per-user basis.

Sales Pro does not include entitlement for D365 Customer Voice surveys. Sales Enterprise includes default capacity for up to 2000 survey responses per tenant/month.

Dynamics 365 Marketing is tenant-based and metered by the number of contacts used, unlike other Dynamics 365 apps licensed per-user.

Organisations with a minimum of ten qualifying Dynamics 365 licences can deploy the marketing app at £565.60+VAT per month. This rate includes capacity for up to 10,000 marketing contacts, 100,000 marketing interactions and 1,000 SMS messages per month. Qualifying licensing includes Enterprise or Professional licences, but Team Member licences are not counted.

For new customers or existing Dynamics 365 users with fewer than ten qualifying licences, the price for Dynamics 365 Marketing totals £1131.20+VAT per month. This includes 10,000 marketing contacts, 100,000 interactions, and 1,000 SMS messages per month. Additional capacity is available at an incremental cost.

Customer Voice is the recommended solution to distribute surveys using Dynamics 365 Marketing. The above licences include default usage for Customer Voice with a capacity of up to 2,000 survey responses per month.

A non-production deployment of Dynamics 365 totals £188.50+VAT per month.

The Dynamics 365 Customer Service Professional is for users who don't need the full features offered by the main Dynamics 365 Customer Service Enterprise licence. Both licences allow users to create and manage cases, contracts, entitlements, Service Level Agreements, contacts, accounts, facilities / Equipment and lead records in Dynamics 365.

Customer Service Professional is limited to up to a maximum of 15 custom entities. Customer Service Enterprise provides unrestricted use.

Further caps for the Professional licence include:

  • Dashboards & Charts - limited to a maximum of 5 per entity/table
  • Personal Forms & Views - limited to a maximum of 2 per entity/table
  • Define & Customise Business Processes - limited to a maximum of 5 per entity/table
  • Define & Configure Queues - limited to a maximum of 15

The following functions and entitlements are unavailable with a Customer Service Professional licence.

  • Dynamics 365 Customer Voice survey response capacity
  • Embedded intelligence / AI
  • Capability to run Power Apps in the same environment
  • Configure Teams and Business Units
  • Configure and view the Schedule Board
  • Accrue additional cloud storage per user

Dynamics 365 Team Member licences are for users with only light usage needs. These enable users to read data, access dashboards and perform essential functions, including updating contacts and scheduling activities.

Team Member licences are priced at a significantly lower rate than a full Dynamics app. Use access is restricted to specific Sales or Customer Service Team Member apps which can be configured to include navigation for up to 15 tables. Team Member licences do not include access to the D365 Sales Hub or Customer Service Hub.

Users can have full read access across all Dynamics 365 tables, including Sales, Customer Service and Project Service and write access to contacts, notes and activities for up to 15 custom entities. Additional entitlements include web, mobile and Outlook access, run mail merges, create personal views and perform queries.

Team Member licenses do not allow users to create or edit leads, opportunities, accounts, work orders, marketing lists, quotes or dashboards.

A 'full' user of Dynamics 365 for a single role-based first-party app will also have Team Member capabilities. For example, a user licensed with the Sales app could also use Team capabilities to read Customer Service data such as entitlements, subject to the standard Dynamics user security permissions.

Microsoft has moved from multiple licence models with program-specific offers across its products to a New Commerce Experience (NCE) that provides flexibility to meet varying user needs. From 1st July 2022, all new subscriptions and Cloud Service Provider (CSP) renewals have moved to NCE terms.

The New Commerce Experience will only be applied to commercial customers. Not for Profit and Education channels are currently not in scope for this transition, but they are expected to be onboarded to NCE in the future.

The changes to CSP transactional model within the New Commerce Experience include:

  • Annual subscription option to lock in licence prices for 12 months and reduce user count at the end of term, if required
  • A new option to remove pricing uncertainty by locking in licensing rates for a 36-month term has been added.
  • For the annual and the new 36-month agreement options, cancellations made after 72 hours will be billed for the remaining term.
  • Monthly subscription with the flexibility to reduce licences any month at a 20% premium. Allows for monthly seat reductions and cancellation of licences any month without further financial commitment.

Customers have the option to mix and match licences from these three terms.

What are Power Apps Plans?

As an alternative to licensing Dynamics 365 apps, Power Apps Plan enable streamlined hubs to be deployed using many standard Dynamics entities and these also support unlimited custom entities. Each app can use the same responsive model-driven app interface as Dynamics and all data is securely stored in Microsoft Dataverse enabling data and processes to be connected throughout your organisation.

Quickly deploy a Power Apps hub to simplify any repeatable workstream. For example Preact's Charity Hub or Course Manager applications are licensed using a Power Apps Plan licence at a significantly lower price than a Dynamics 365 first-party app.

Power Apps Plans provide usage entitlement for a single app, or enable users to access unlimited apps.

Per App Plan

@ £3.80 per user / app / month

Per User Plan

@ £15.10 per user / month

DOWNLOAD - Dynamics 365 Quick Reference Licensing Grid

Compare the capabilities and entitlements across Power Apps Plans and Dynamics 365 licences including Sales, Marketing and Service apps.

Download Guide

Additional Licensing Resources


PowerApps Plans vs Dynamics 365 Licensing - comparison between PowerApps Plan licences and Dynamics role-based apps and Team Member SKUs.

Microsoft Licensing Guide - the latest Microsoft licensing guide for Dynamics 365.