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License to develop on Dynamics 365 Sales SaaS

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What is required to develop solutions for customers on Dynamics 365 Sales Pro/Enterprise SaaS?

We have a number of MSDN licenses for the Visual Studio work. 

What I don't know is what we need to customise Dynamics 365 Sales. Does each developer need a license? Or do we set up a sandbox and we can have as many dev/test users as we need on the sandbox and customers have paid full license to access the main instance?