Dynamics 365 Overview – Everything You Need To Know!

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This blog is aimed at answering some of the major questions floating around the CRM industry as it relates to Dynamics 365. Dynamics 365 is a large product with a lot of capabilities, some which haven’t been released yet – feel free to reach out to us for some free readiness training. Helping our clients plan strategic road maps is what we do! 1-416-410-8444 x1 or 1-877-893-3266 x1 Now that our shameless sales plug has done, let’s move onto Dynamics 365! It has been an interesting year for Microsoft – acquiring LinkedIn, partnering with Adobe for the Adobe Marketing Cloud (we will come back to this) and releasing Dynamics 365! We do not know exactly how or when Dynamics 365 users will gain access to LinkedIn. We should have more about this acquisition soon so stay tuned.

What is Dynamics 365?
Dynamics 365 is Microsoft’s latest release of CRM and ERP software. It’s aimed at giving a natively integrated end to end Microsoft business application process. The full product suite which would give you both a CRM and ERP system does not have to be purchased all at once but rather gives the flexibility of starting out with an immediate “app” and adding others later. Microsoft’s newly opened datacenter in Toronto, Canada can host your Dynamics product or any other of their datacenter locations around the world. Dynamics 365 plugs seamlessly into Office 365/Outlook, create an opportunity from email, pull up recent communication about an account, manage opportunities or access an invoice – all within Outlook! Dynamics 365 gives you the benefit of tight integration without the typically expensive integration cost through a natively “better together” product.

Microsoft Dynamics Marketing (“MDM”) and Parature will not be continued as Microsoft has made large improvements to the new products which will be launching in the future aimed at replacing both. As of November 1st you will not be able to buy either Parature or “MDM” and end of support will be June 30, 2020 for both. MDM is replaced by Adobe Cloud Marketing which we will talk about more in the coming months.

Dynamics 365 has two versions available, Enterprise and Business Edition. Each version contains a variety of “apps” which can be purchased individually if all you need is one specific app (sales for example) or as a “plan” which groups a variety of apps together at a discounted price. Previously when you bought the Dynamics CRM Professional user, you would gain access to all modules (Sales, Service and Marketing) within the product. This usually ended with a lot of the product not being touched but left you paying for the entire thing. Dynamics 365 allows you to break it up and only pay for the “apps”/modules you need!

What is the difference between Enterprise Edition and Business Edition?
Business Edition is optimized for 10-250 employees, has a 300 seat maximum and is available only online, Software-as-a-Service. Business Edition will launch November 1, 2016 with only the Financials app which is a powerful accounting package with lot’s more features than a product such as QuickBooks or FreshBooks. In the spring of 2017 – the Sales and Marketing apps will be released. They will be an improved version of the current CRM Online product. The business edition takes aim at organizations looking for the end-to-end integrated product suite for a very low entrance cost both for software and implementation/training. Reach out to us if you would like to see it in action!

Enterprise Edition aimed at organizations with 250+ employees, offers both CRM, ERP(AX) and allows for dual use deployment option rights Online or On-Premise. The accounting product in enterprise is essentially a hosted version of AX7 which is called “Operations”. The Operations/AX app require a minimum of 20 seats. Enterprise comes with a wide variety of apps – Sales, Field Service, Customer Service, Project Service Automation, Marketing and Operations (AX 7).

Here is a comparison breakdown of the apps available in each version. Further in this blog we will break down the functionality and pricing for each app and the plans.

Microsoft Dynamics 365 Business Edition Microsoft Dynamics 365 Enterprise
Financials Operations(AX)
Sales (Released Spring 2017) Sales
Marketing (Released Spring 2017) Marketing
Customer Service
Field Service
Project Service Automation
*Includes embedded intelligence, Flow and PowerApps *Includes embedded intelligence, Flow and PowerApps

The first item you need to know is that as of November 1 – the only new product launching is Dynamics 365 for Financials. The new versions for the remaining apps will be released in spring 2017. Meaning if you purchase CRM net new on November 1st – you are getting the previous version that was known as CRM Online which used the licensing user model of enterprise, professional, basic, limited and essential (we will talk about the new user types shortly). So why purchase now? Discounts! We will come back to this.

Here is a high level look at what each of the modules within Dynamics 365 business edition will allow you to do.

Business Edition Apps Description of App
Sales App Lead, Opportunity, Account and Contact management. A solution to seamlessly manage your customers, sales team, quotas, pipeline, create quotes and stay on top of everything through a variety of out of the box dashboard/Reports. The Sales app ensures you do not neglect any customers and stay ahead of your competition with competitor tracking.
Marketing App The marketing module will be replaced come Spring 2017 with the new Adobe Marketing Cloud. Currently the Marketing module allows you to create marketing lists based on user defined criteria, manage campaigns (how many leads came from each, campaign costs and ROI) plus the ability to send mass emails with email templates which all tracks against the corresponding account/contact/opportunity record in CRM. Lack of strong marketing automation was a complaint in recent versions of CRM – this caused users to rely on ISV solutions such as ClickDimensions for form capture and analytics. This will no longer be the case with the Adobe Marketing Cloud partnership – exciting! Hang tight – we will have more soon!
Financials (Madeira) App The new rock star of Dynamics 365 business edition – Financials for Dynamics 365! The financials app not only provides far more functionality than software such as QuickBooks but also can natively integrate to CRM – giving the small business tools that previously typically weren’t affordable. Account’s will synchronize, quotes/orders can pass back and fourth so no double data entry is needed between ERP and CRM – giving fantastic reporting and automation.Previously no small business financial package existed besides Dynamics GP which is a full ERP system with an implementation cost starting at $10,000 (our Rapid Deploy GP package)Financials for Dynamics 365 will bring Sales (quotes, orders, invoices/receivables), Purchasing (purchase orders, vouchers/payables, returns), Finance (general ledger, banking, multicurrency), Inventory (inventory items, quantity and cost), Relationship Management (contacts, sales opportunities) and more! PS: We will be posting a dedicated blog within the next 1 week about Financials (Madeira) – so stay tuned!

The Enterprise Edition comes with a powerhouse of apps some of which are vertically focused:

Enterprise Edition Apps Description of App
Sales App Lead, Opportunity, Account and Contact management. A solution to seamlessly manage your customers, sales team, quotas, pipeline, create quotes and stay on top of everything through a variety of out of the box dashboard/Reports. The Sales app ensures you do not neglect any customers and stay ahead of your competition with competitor tracking.
Marketing App The marketing module will be replaced come Spring 2017 with the new Adobe Marketing Cloud. Currently the Marketing module allows you to create marketing lists based on user defined criteria, manage campaigns (how many leads came from each, campaign costs and ROI) plus the ability to send mass emails with email templates which all tracks against the corresponding account/contact/opportunity record in CRM.Lack of strong marketing automation was a complaint in recent versions of CRM – this caused users to rely on ISV solutions such as ClickDimensions for form capture and analytics. This will no longer be the case with the Adobe Marketing Cloud partnership – exciting! Hang tight – we will have more soon!
Customer Service App (Previously the Service module) The customer service app was previously called “Service” and offers customer service management. This app provides case management, service level agreement tracking, billable time logging and everything you would require to ensure cases are smoothly managed through a variety of dashboards and reports.Typically this is used for managing customer issues which often start with a front line call center. This module can be extended into a portal giving customers the ability to get updates easily.
Field Service App The Field Service App replaced FieldOne which was recently acquired by Microsoft. It is aimed at providing field service organizations seamless management of their fleet, work orders/approval, preventative maintenance, billing , assets/inventory full mobile capability, GPS tracking, automatic routing based on skillset/location and document storage.
Project Service Automation App For project based organizations – this is the one you have all been waiting for! Manage a project from end to end all within CRM – from pre-sales to project closure. This module makes it very easy for project managers to get a full view of the available resources with expertise, easily build project plans and collaborate on documents all within a tracked workspace. Aside from just billing time, expenses can also be entered easily by the resources – giving you a full 365 view of a projects profitability. This module ensures projects stay on time and budget – a real game changer to the Dynamics 365 lineup.
Operations App (previously called AX 7) The operations module is AX 7 with native integrations to all of the other “apps” available – it also significantly reduces IT overhead. Dynamics AX has been helping organizations automate their business processes for years. It can now be had for a fraction of the software and implementation cost.Dynamics AX an all in one enterprise solution covering all the needs of the organization. It’s broad range of capabilities integrates data across multiple functional areas and allows organization to avoid costly integrations with additional systems.  In addition to financial management, AX has comprehensive supply chain, project management, human resources capabilities.  It comes equipped with industry specific solutions for retail, public sector and manufacturing. Dynamics AX is designed for the web and mobile device for easy access, and comes with built-in Office 365 integration

What is a Plan?
Now that we have broken down the editions and which apps reside in each, we have to talk about “plans”. A plan is a package granting access to multiple apps for a discounted price. Plans are strictly designed to save you money if you require more than 1 app – that’s it! The other big advantage is tiered pricing that we will expand on shortly. The pricing model is changing as of November 1st and we will break down what it means to each of you. Microsoft has released some exciting promotions that I believe will excite the SMB especially. How much does Dynamics 365 Cost if I am NOT a current customer of Dynamics CRM Online?

Business Edition:
Currently the only app available for Business Edition is Financials so no “plan” is available currently. Plans will be released in Spring 2017 along with the new apps which will come with a price break at a variety of tiered levels, 1-14, 15-49, 50-74 and 75+ users. Each higher user level will grant you a reduced cost per user which will be released in the near future – sorry! Keep in mind – you only benefit from tied pricing if you are on a plan – you do not benefit from the tiered levels if you just own a single app.

Only need the Sales app? Microsoft has released an SMB promotion that allows an organization to buy the Enterprise Sales App for $48/user CAD – there is a 25 user limit however. This license will provide all of the functionality that is in the current version of a CRM Online with a Professional User license. Team member licenses are available at $6/user CAD which is the stripped down version of the full license allowing for read only access to most of the system. This SMB promotion is huge so take advantage of it if you fit the parameters as it won’t be around long!

Marketing – The new version of marketing is based on Adobe Cloud Marketing and will be released in Spring. Many organizations have leveraged third party applications such as ClickDimensions in the past so this will bring a fresh new light for those looking for marketing capabilities natively in CRM. Financials – To gain access to the newly released Dynamics 365 for Financials application it is priced at $48/CAD (40/USD) per month/user for the full user or $6/CAD ($5/USD) per month for the team member license. Dynamics 365 for Financials comes with unlimited file and database storage and is licensed per named user.

Here is a breakdown of functional per user type:

Team Member – $6/month CAD Full User – $48/month CAD
Approve Workflows across the application Yes
Edit Financial management  Yes
Purchase and payables  Yes
Sales and receivables  Yes
Inventory management  Yes
Create Requisition and quotes  Yes  Yes
Manage Personal information  Yes  Yes
Update Existing data and entries in Dynamics 365  Yes  Yes
Read Across all Dynamics 365 Applications  Yes  Yes
Power Apps APP Contextual Power Apps for Dynamics 365  Yes  Yes

Enterprise Edition:
As discussed earlier in the blog, you can either license an individual App or a Plan which is a package of apps. Atum is a CSP partner and as such – we are able to give further discounts on pricing so please check with us. Here is a breakdown of the retail price list in both Canadian and US dollar but remember we can do better than list price and discuss current promotions as a partner! :)

Description USD Cost Per User CDN Cost Per User
Sales App * $95.00 $114.00
Field Service App $95.00 $114.00
Customer Service App $95.00 $114.00
Project Service Automation $95.00 $114.00
Operations $190.00 $228.00
Power Apps $40.00 $48.00
Team Member License $10.00 $12.00
Enterprise Plan 1: Sales, Field Service, Customer Service, Project Service $115.00 $138.00
Enterprise Plan 2: Sales, Field Service, Customer Service, Project Service, Operations $210.00 $252.00

*If you are interested in the Sales App – an SMB promotion is running right now which gives you the Sales App for a big discount. See the above section under Business Edition. $48/CAD per user.

Pricing Tiers
One of the benefits of “Plan” pricing is the ability to take advantage of pricing tiers. Microsoft has put forward pricing tiers that grant discounts at a certain number of users. The Enterprise Plan 1 Tiers are as follows: Base Tier – Less than 99 users: $138/CAD monthly per user Tier 2 – More than 100 users: $108/CAD monthly per user Tier 3 – More than 250 users: $96/CAD monthly per user Tier 4 – More than 500 users: $84/CAD monthly per user Tier 5 – More than 1000 users: $72/CAD monthly per user

What does Dynamics 365 mean if I am an existing Dynamics CRM customer?
Microsoft has released promotional transitional SKUs to grant existing customers access to the additional functionality (in spring) for a decreased cost. Most importantly – your pricing will not change until the end of your agreement. Your partner should be able to tell you when that is and go over options with you for when to transition to save you the most money. For any of you unhappy with your current partner or looking for a new partner – we would be happy to help and of course this would be of no cost to you, reach out to us at 416-410-8444 x1 or sales@atum.com regardless of whether you are in the US or Canada!

I am going to break down your options into two different paths based on your current deployment method, CRM Online and On-Premise:

Current CRM Online Customers:
As of your renewal date, you have to transition to the new pricing model. You need to strategically plan your roadmap to ensure you renew your licenses in a way that saves you the most money. Your partner can assist with this. For example, if you currently have PRO users but only require Sales – don’t renew the entire plan unless you will use the other apps relatively soon. On the flip side – if you may use them in the near future – getting a plan now likely makes sense while you can take advantage of the below transitional pricing.

Existing User License New User License Transition Price USD Monthly Transition Price CAD Monthly Discount
Professional User Dynamics 365 for Enterprise Plan 1 $86.00 $103.20 25%
Professional User Dynamics 365 for Customer Service $76.00 $91.20 20%
Professional User Dynamics 365 for Sales $76.00 $91.20 20%
Basic + Field Service Dynamics 365 for Field Service $76.00 $91.20 20%
Basic + Project Service Dynamics 365 for Project Service $76.00 $91.20 20%
Basic User Dynamics 365 for Enterprise Plan 1 $57.00 $68.40 50%
Basic User Dynamics 365 for Sales $50.00 $60.00 47%
Basic User Dynamics 365 for Customer Service $50.00 $60.00 47%

Current On-Premise CRM Customers:
If you are an on premise customer the first item you need to verify is if you are current on your annual enhancement plan – your partner should help you with this each year. Again, we are happy to assist with questions 416-410-8444 x1. J Now that we know you are current, you have two options.

Option 1: Keep your current on premise licenses and continue to pay the annual enhancement/software assurance fee. This will ensure you keep the benefits of your annual enhancement fee. When you need additional users – you simply purchase them as per the model below. You can make this change at any mid-term, anniversary or renewal. If you choose this option, you will purchase the Cloud Add-On licenses from the below chart.

Option 2: Convert your licenses to the subscription model and drop your current enhancement plan/software assurance costs. This means going forward, you will pay the cost in the SA column and no longer be paying the enhancement fees – you will however loose the benefits that go along with those but always be entitled to the latest version of course.

For Canadian Pricing – simply multiple by 1.2. Example $69 USD * 1.2 = $82.80 CAD

Existing User License New User License SA Option USD Cloud Add-on Option USD Discount
Professional CAL Dynamics 365 for Enterprise Plan 1 $69.00 $49 + SA/EP 40%
Basic CAL Dynamics 365 for Enterprise Plan 1 $40.00 $33 + SA/EP 65%
Basic CAL Dynamics 365 for Sales $35.00 $28 + SA/EP 63%
Basic CAL Dynamics 365 for Customer Service $35.00 $28 + SA/EP 63%
Essential CAL Team Members $6.00 $4.5 + SA/EP 40%

What does it mean if I am an existing GP/NAV customer?
For now – not a whole lot! Dynamics GP and NAV is not going away at any point in the immediate future. I would encourage you to reach out to your partner and ask if the new Dynamics 365 products would be interesting for your use.

What is PowerApps?
PowerApps give you the ability to work with data from a variety of sources that you have already built such as Dynamics CRM or another application. It allows you to seamlessly build apps for mobile devices or even a web browser without any coding or complexities. This allows you to extend CRM to a whole new level. Stay tuned for some practical use cases in a dedicated PowerApps blog we will be publishing soon.

What does the roadmap look like? D *Photo Credit – Microsoft

I know that was a lot to take in so if you have questions, please do not hesitate to reach out to us. We want to get the information about Dynamics 365 around to everyone so feel free to share the article – thank you for the support!

PS: We will be releasing a detailed blog specifically about Dynamics 365 for Financials (Madeira) next week with screenshots and functionality detailed.
-The Atum Team
416-410-8444 x1
sales@atum.com