Dynamics Community Forum Thread Details

Concern about license Premium and Essential

Hello DC-07030241-0,

You've raised a very valid concern about licensing efficiency, especially when dealing with a vendor's insistence on a single, high-tier license for all users. Here's a breakdown of the licensing situation with Dynamics 365 Business Central and how to approach your vendor's requirement:

Understanding Dynamics 365 Business Central Licensing:

License Types:
- Dynamics 365 Business Central Premium: Provides full access to all Business Central functionalities, including manufacturing and service management.
- Dynamics 365 Business Central Essentials: Offers core business functionalities like financials, sales, purchasing, and inventory management.
- Dynamics 365 Business Central Team Members: Provides limited access for read-only and light data entry tasks.

Mixing Licenses:
- Microsoft generally allows mixing license types within a Business Central tenant. This is a core part of their licensing strategy to optimize costs.
- The idea is to match license types to user roles and needs.

Addressing Your Vendor's Requirement:

Clarify the Vendor's Rationale:
- Why the Restriction? Ask your vendor to provide a clear and detailed explanation of why they are insisting on a single Premium license type.
- Technical or Contractual? Determine if the restriction is based on technical limitations, contractual agreements, or other factors.
- Specific Features? Ask if there are specific features that they are using that require all users to have premium licenses.

Refer to Microsoft Licensing Documentation:
- Review the official Dynamics 365 Business Central licensing documentation from Microsoft.
- This will provide you with a clear understanding of the supported license types and mixing policies.
- Here is a good starting point: https://dynamics.microsoft.com/en-us/business-central/pricing/

Negotiate with the Vendor:
- Highlight Cost Savings: Present your vendor with the cost savings that can be achieved by using a mix of license types.
- Demonstrate User Roles: Show your vendor the different user roles within your organization and the corresponding license requirements.
- Seek Alternatives: Explore alternative solutions or configurations that can meet your needs while allowing for license mixing.

Escalate to Microsoft (If Necessary):
- If you are unable to reach a satisfactory agreement with your vendor, consider escalating the issue to Microsoft.
- Microsoft can provide guidance on licensing policies and help resolve disputes.

Consider a Second Opinion:
- Get a second opinion from another Dynamics 365 Business Central partner.
- They may be able to provide alternative solutions or insights.

Audit your user needs:
- Make sure that you have a detailed audit of your users needs. Document who needs read only access, and who needs full access. This will help with the negotiation.

Key Points:

Microsoft generally supports mixing Business Central license types.
Your vendor's restriction should be thoroughly investigated.
Refer to official Microsoft licensing documentation.
Negotiate with your vendor to find a cost-effective solution.

By following these steps, you can effectively address your licensing concerns and optimize your Dynamics 365 Business Central costs.

If my answer was helpful, please click Like, and if it solved your problem, please mark it as verified to help other community members find more. If you have further questions, please feel free to contact me.

My response was crafted with AI assistance and tailored to provide detailed and actionable guidance for your Microsoft Dynamics 365 query.

Regards,

Daivat Vartak

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