Licensing Terms for Vendors

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Posted on by bprashant644

Hello,

My query is regarding Licensing of vendors (typically E-Commerce vendors, Store owners or Franchise owners) who can use the MS Dynamics functionality via web based application.

These owners interact with MS Dynamics but are external users and neither employees, contractors or agents. Since, external users require no CAL's how do we define this relationship and it is applicable for license. These vendors will fetch details from the server and give order as required. Similarly, B2B vendors who interact with MS Dynamics are they to be licensed.

Another issue, in case SAP is fetching some data directly from MS Dynamics, does this require the SAP user to be MS dynamics licensed.

I have read the license documentation as well, it would be really helpful if someone can explain -

What constitutes performing business processes on behalf of the Organization (this will clarify the external and internal user issue.)

Thanks in advance.

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Ludwig Reinhard Microsoft Employee on at

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Hi,

Your tags show ...AX (current version). Can you provide some information on whether you operate AX2012 or D365FO?

Many thanks,

Ludwig

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bprashant644 20 on at

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Hi Ludwig

Its AX2012

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André Arnaud de Cal... 301,014 Super User 2025 Season 2 on at

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Hi bprashant644,

Only specific external roles don't require a specific CAL. Depending on the features external users will use, they need to be licensed as a normal user. This is determined on the menu-item level. To be able to know if "SAP" should be considered as a user, it depends on what exactly will be retrieved and/or written back.

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bprashant644 20 on at

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Hi Andre,

Thanks for the reply.

Considering these two particular scenarios can you please shed some light on this -

1. These 3rd party vendor (external user) are given form (menu-item) level access to update and view forms. In addition, the data flow from vendors to MS Dynamics DB has intermediary levels of batch programs to automate the process. Do these vendors require CAL's or if we stick to definition of external user then they are not to be licensed. If they do require CAL's is there a way to check the same on MS Dynamics AX.

2. What happens if the automation is done through AOS (AX application server), where data is captured using 3rd party application (No interaction with MS Dynamics AX) and AOS then fetches and delivers this data to Dynamics AX DB? Does the vendor still require license?

As per my understanding, this clause "The number of tiers of hardware or software between the Microsoft Dynamics AX 2012 R3 Server

and the user or devices that ultimately use its data, services or functionality does not affect the

number of CALs required." invalidates the above mentioned 2nd point and the licenses are still required, right? please correct me if I am wrong.

Thanks in advance.

Regards

Prashant

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André Arnaud de Cal... 301,014 Super User 2025 Season 2 on at

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Hi Prashant,

You have not told yet what exact data is being used. If the vendors will enter e.g. the invoices or orders, then for sure they have to be licensed as a normal user. If they provide the invoice in a readable file (e.g. by mail) and you import it yourself or via a scheduled batch, then there is no need for a license for these external users; then they don't need access at all.

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bprashant644 20 on at

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Hi Andre,

1. The data flown is in XML format containing service requests, which is captured via 3rd party application and pushed through windows scheduling to SFTP folder. It is then fetched by AOS server and then delivered to MSD AX DB.

In this scenario, does the user of 3rd party application needs to be licensed?

2. Similarly other XML files are fetched by SAP, where MSD converts data to xml and pushes to SFTP folder, from where SAP fetches data through scheduler. (Data is only received by SAP, no to and fro data transfers)

Here, do we need to license SAP users?

A quick response would really be appreciated..

Thanks again.

Regards

Prashant

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bprashant644 20 on at

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A quick response to this query will really be helpful...

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Martin Dráb 237,874 Most Valuable Professional on at

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We don't have enough information about your vendors and the activity they perform. For example, the licensing guide says that "Offsite vendors are considered external users only when their time is shared in between multiple customer organizations (for example, IT support service vendors serving multiple customer organization)". We don't know such details.

Regarding SAP, it again depends on who uses the data and how. That it's done indirectly through SAP doesn't impact licensing ("Any user or device that accesses the Microsoft Dynamics AX 2012—whether directly or indirectly—must be properly licensed").

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bprashant644 20 on at

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Thanks Martin!

That's helpful.

Just to confirm, in case the vendor doesn't share time between multiple customer organization and they only share the customer service request with AX and keep an update on flow of the request through the third party app. Then they do require CAL right?

although they have indirect access through 3rd party app, they still have access to AX data on the app that requires a license. That is my understanding.

The only thing confusing me is that conversion of data to xml and data transfer through SFTP (as mentioned in the previous queries) can this avoid the licenses for these 3rd party application users.

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Martin Dráb 237,874 Most Valuable Professional on at

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They must meet all conditions, not just this one.

No, the data transfer makes no difference ("Any user or device that accesses [AX] - whether directly or indirectly - must be properly licensed").

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