I would appreciate any advice from anyone with experience on this topic. Dynamics 365 BC on prem user with perpetual licences. Downsized the team and now looking to our supplier to reduce licences and ultimately BREP annually. They point blank tell us this is not possible. I cannot believe that Microsoft do not have a mechanism in place for this. I have read on another resellers blog that there is merely a form to fill in and sign to reduce licence numbers or codeunits if we chose to reduce.
Yes you can permanently deactivated the licenses you dont need. thus BREP reduced . But you will have to buy them back as new if you should need them again.
On-Prem perpetual licences cannot be downsized/decreased.
You can just stop paying BREP - if You know that You will not need to add something to the license (add-on, tables etc. or You are not planning to perform upgrade to newer version anytime soon). After several years if You need to change something after all in the license You will need to pay BREP for all the skipped years, or if they are more than 5-6 years, it is cheaper just to buy a totally new license.
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