Simplifying licensing across our SMB ERP solutions: don't miss new DPL announcements!

Microsoft

Today Microsoft announced a set of changes to licensing of Dynamics Business Central and Dynamics GP. We recommend partners check out the details at aka.ms/dplmodel

For Dynamics 365 Business Central , the changes aim to achieve “One Price, One Purchase Model, Full Flexibility.” In the past, customers had different reasons for choosing to run on-premises vs. in the cloud. We wanted to simplify the licensing models for new customers (e.g., subscription vs. perpetual), so that they can decide on on-premises or cloud deployment based on their connectivity and functional needs. Specifically:

  • Effective April 1, 2025, purchases by new customers of Dynamics 365 Business Central on-premises will be limited to subscription licensing
  • Existing customers not impacted – No changes for existing customers with active enhancement plan, to add functionality or users to their perpetual license.
  • Simplified model – Customer choose Business Central, with flexibility to decide on on-prem or cloud deployment.

Microsoft will continue to recommend Business Central Online (cloud) as the best option for most customers, as it offers the most comprehensive and reliable experience in terms of capabilities, performance/security, and agility.

The recent update also states that after April 1, 2026 sales of Dynamics GP will be limited to existing customers. Microsoft is focusing most of its resources on other products, and we want to make sure that new customers adopt systems that benefit from future innovations. We know that Dynamics GP has a loyal community and Microsoft is fully committed to supporting existing customers and partners. For existing customers there are no changes . We will continue to provide regulatory (tax) updates, security updates, and hotfixes to ensure the current version of Dynamics GP remains up to date, including any usability and reliability updates needed to address top customer issues that are critical in ensuring businesses run successfully on Dynamics GP. We encourage Dynamics GP Partners to consider adding Dynamics Business Central and/or other Microsoft apps to their portfolio. We will invest in programs to help partners who want to make the transition. Microsoft highly values the Dynamics GP partner community and hopes that by giving three years notice, partners will have enough time to evaluate their future plans. Of course, partners can still support their existing customers, who will continue to receive Dynamics GP updates for the foreseeable future.

For more details on the announcement, check out aka.ms/spanews1

We look forward to discussing these and other exciting new developments at Directions North America and Directions Asia this month - don't forget to register!  See you there!

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