Dynamics 365 Enterprise and Business editions were made available November 1, 2016 through Cloud Service Providers.

Dynamics 365 is Microsoft’s cloud based application and services product for businesses. D365 further aligns the Microsoft Dynamics products with Office 365 and improves integration to apps across departments, locations or entities.

Many of us have the same questions about Dynamics 365, so we put together some FAQs released by Microsoft along with some of the questions we’ve been hearing from customers and partners about Dynamics 365.

Dynamics 365 Business Edition FAQ

  1. What does Dynamics 365 offer SMBS?

Microsoft Dynamics 365 will include Dynamics 365 Financials for Business, a comprehensive accounting and business management solution for SMBs.

  1. How many versions of Dynamics 365 are there?

2 editions – Enterprise and Financials for Business (SMB)

Each edition has a set of purpose built applications.   For example: Operations, Sales, and Customer Service.   Dynamics 365 offers customers the flexibility to grow at their own pace and expand into additional capabilities with ease to run their entire business in the trusted Microsoft cloud.

  1. What is the Business Edition?

The business edition is optimized for 10-250 Employees, particularly the 10-100 employee segment. It will contain Financials and in the future a Sales and Marketing application as well. It is cloud only and has a 300-seat maximum which aligns with Office 365 licensing.

  1. What is the Enterprise Edition?

The Enterprise edition is optimized for 250+ Employees. It includes the CRMOL and AX products you know today. It includes Online / On premises dual use rights – So customers don’t need to move online to move to Dynamics 365. And it contains a 20 user minimum on offers which include AX. There is no CRM seat minimum with this offering.

  1. When will the application be available in the U.S.?

Both editions will be available on November 1, 2016 through a CSP Partner.

  1. What is the user minimum on Dynamics 365 Business Edition?

One user.  Enterprise Edition has a 20 User limit for Operations or Enterprise.

  1. What is the length of the commitment?

Microsoft requires a 1 year commitment, but customers will be billed by CSP Partners on a monthly, quarterly or annual basis (depending on the Partner).

  1. Do I need a Partner to purchase Dynamics 365?

Yes, Microsoft will not be selling the application directly.

  1. Do I need a Partner to implement the application?

No, but a Partner is highly recommended for optimal configuration.

  1. Is there an upgrade path from Business Edition to Enterprise Edition?

Microsoft currently has no plans to offer a migration path between the two applications.

  1. How much will Dynamics 365 cost?

Pricing for Dynamics 365, Business Edition Pricing is as follows:

Team Members will be $5. Individual business apps will be $40 per user per month as will PowerApps. And for an additional $10 per user per month customers can take advantage of our new plan based licensing structure and build custom roles leveraging all the functionality on the right for only $50 per user per month.

  1. How is the D365BE licensed?

Dynamics 365 is licensed either by App or Role-based Licenses.  To date, software has been licenced by application – traditionally designed around departmental needs.  The application based licensing supports this traditional model.

Role-based licensing is designed to help customers to support their employees and the real world roles they fill.  For example, Account Managers do a better job when they can see the latest Customer Service tickets and outstanding invoices.

Role-based licensing provides users with full usage rights to PowerApps and Microsoft Flow to compose new apps and easily extend and modify existing ones. Role based licensing improves ROI as companies pay once for access to the capability they need regardless of which application it resides in.   

Team Member License:

Dynamics 365 licencing is also designed to be inclusive – to meet the needs of employees who may not need to be full users of any business application.  On a day-to-day basis, these employees need to book travel, change their personnel information, update a customer record, or review sales data.   Dynamics 365 offers a Self Service option to enable these employees to perform these tasks themselves versus relying on others and impacting productivity.


  1. What do Team Members have access to?

Team members can create, manage update and read many items in the application.  However there are no editing capabilities (or data entry) in the core financial modules.  The graphic below best illustrates usage by Role.


  1. Do all these Dynamics 365 apps really work together seamlessly?

All of Microsoft’s intelligent business apps will align to a new common data model, and an extensibility model that combines existing customization tools with PowerApps and Flow. At launch Microsoft will have made solid progress towards apps working seamlessly together, and it’s an effort we’ll continue as they redefine business processes to eliminate historical boundaries between CRM and ERP. CIS, IOT and PowerBI all play key roles in how we help businesses be more outcome driven as well as give customers and the Partner ecosystem the ability to leverage our new common data platform to integrate legacy and 3rd party solutions with Dynamics 365.

  1. What is included with the Dynamics 365 Business Edition?

Dynamics 365, Business edition service comes with 1 production instance and unlimited file and database storage. It also comes with one free External Accountant License, for additional details on the accountant user see the licensing guide. See graphic for more detail below:


  1. How are updates handled?

Microsoft will release updates to the application as they are created.

  1. Will customers be notified in advance of an update?

We are not sure how or if customers will be notified of system updates or the cadence of releases.  We will update this as more information becomes available.

  1. What is the “Common Data Model” and what role does it play with Dynamics 365?

The common data model is a cloud-resident business database, built on years of experience with our enterprise customers. It will come with hundreds of standard business entities spanning both business process (Dynamics 365) and productivity (Office 365). The standardization and consistency of schema enables partners to build innovative applications and to automate business processes spanning the entire business process spectrum with confidence their solutions can be easily deployed and used across Microsoft’s entire customer base.

  1. Are all these business apps built on the Azure platform?

Yes, Microsoft Azure is the focal point from which they will innovation in Dynamics 365 and we’ll continue to adopt Azure capabilities as they are available.  They will also continue to leverage Office 365 and existing Apps outside of Azure to deliver on the vision.

  1. Will Dynamics 365 Business Edition be available on-premises?

No.  Dynamics 365BE is a cloud service so it will not be available, as is, on premise or in private clouds.

  1. When and where will Dynamics 365 be available?

Both editions will be available November 1, 2016 through a Cloud Service Provider.

  1. Will there be discounts for volume purchases?

Yes, customers who purchase more seats can qualify for a lower price tier. This benefit is not available on the apps.

There are four price tiers for SMB, they are 1-14, 15-49, 50-74 and 75+.  (see graphic below). Customers who meet those seat tier thresholds when they purchase new seats can purchase the new seats at these tier prices. Customers who purchase apps pay the same price regardless of the number of seats they purchase. Plans are our hero offer and we’ve made sure they provide a great value to customers. Both at the first tier where you can step to the plan for $10 and beyond that with tiered pricing to encourage customers to expand their user base and expand into additional workloads.  There is no tiered pricing for team members.  This is a $5 flat pricing per user.



  1. What happens to the Dynamics AX, GP, NAV, SL and CRM brand/ products?

This is the evolution of our business apps. New versions of Dynamics AX and Dynamics CRM will come together later this year to create the Enterprise edition of Dynamics 365.  The Business Edition will not be replacing GP, NAV or SL. Dynamics NAV, GP, SL continue to be enhanced, supported and licensed to new customers and will continue to be available on premise of partner hosted in the cloud.

  1. Why is Microsoft introducing AppSource? Don’t you already have the Azure Marketplace and other destinations for apps? How is this different – and is another marketplace really needed?

SaaS apps help organizations improve agility across business process categories. However, for business users, sourcing apps tailored to them, their business and their industry can be challenging. Microsoft AppSource helps business users discover and try apps, add-ins and content packages from Microsoft-certified partners, including those built on top of Microsoft Dynamics, Office, Cortana Intelligence and Azure.

The Azure Marketplace is Microsoft’s destination for IT professionals and developers to discover, trial, and acquire IaaS implementations, APIs, data, and developer services.


High-level Microsoft marketplace positioning:

AppSource Line of business SaaS apps
Office Store Extensions to Office
Azure Marketplace Services for building apps on Azure

IT solutions templates for Azure

Windows Store Windows 10 apps and games