What are Microsoft Dynamics 365 Server Licenses?

Microsoft Dynamics 365 is a Microsoft platform  that consists of several applications. In this blog we will specifically discuss the on- premises  branch of Dynamics 365, which contains  the  customer relationship management (CRM) and  Enterprise resource planning (ERP) components.   

What on-premises Dynamics 365 Server licenses are available? 

There are two different types of Dynamics 365 Server on-premises options: The CRM side and the ERP side. Below we explain the different licensing options for both options.  

Microsoft Dynamics 365 Server (CRM)   

Contrary to the name, you do not need Server licenses for Dynamics 365 Server Licenses, but only  Client Access Licenses (  CAL). You can purchase CALs for both users and devices. It is also important to know that external users do not   need CALs. After you   have purchased the Client Access licenses you can use as many Server installations as you want and install previous versions of the CRM Server.   

There are 3 different license types for the Microsoft Dynamics 365 Server (CRM). 

  1. Sales CAL:  This type of license gives you access to the core of all Sales options. Also includes Team Member rights.  
  2. Customer Services CAL: This type of license gives you access to the core of all CS capabilities. Just like the Sales CAL, it also includes Team Member rights.  
  3. Team Members CAL: This type of license ensures that users are not limited to a special functionality but ensures that users have access to the different facets of the Dynamics 365 Server. 

Dynamics 365 for Operations (ERP) Dynamics 365 for operations is Microsoft’s on- premises ERP product and has the following conditions: 

  • You need licenses for your Servers.  
  • You need user/device licenses – Both   user and device CALs are available.  
  • Software Assurance is mandatory.  
  • External users do not require licenses.  

Just like with the CRM branch of Dynamics 365, there are different types of licenses that you can purchase.  

  1. Operations CAL: “Full-service CAL”  
  2. Operations Device CAL: Same functionalities as an operations CAL, only for license devices (point of sale).    
  3. Operations Activity CAL: Limited in functionality but offers the possibility of extensive use. 
  4. Team Members CAL: Same conditions as for Microsoft Dynamics 365 Server (CRM).

What are the benefits of Dynamics 365 on-premises? 

Many companies are not yet ready for the cloud or still prefer to work with on- premises products. Below we discuss a number of advantages that on- premises can have compared to the Cloud: 

  • Use your own infrastructure  

Some companies may have already invested significantly in their infrastructure and hardware and can use this to run the software on their own servers.   

  • Not dependent on an internet service 

On-premises deployment means companies don’t have to rely on a reliable internet connection to access and use their software. By deploying offline, users can rest assured that they can still access their solution if they experience connection issues.    

In addition, on- premises can   be a solution for companies that work with a lot of sensitive information that cannot/should not be stored in the Cloud.  

  • Complete feature about your own data  

With data stored on-site, companies have complete control over how and where they store their data.   

  •  Full control over updates and no data storage costs  

Although Dynamics 365 cloud users can choose whether to deploy product updates, certain updates are mandatory. With an on- premises solution, users have more control over whether and when to apply upgrades.   

By housing your data locally, you won’t have to incur increasing storage costs as your business and database grow. However, this can also be a disadvantage for companies that do not already have the hardware to enable future expansion, as they will have to purchase new servers.   

How do I know which Dynamics 365 Server license I need? 

We understand better than anyone that choosing the right licenses can be very confusing. The Microsoft Dynamics 365 licensing model has undergone major changes in recent years and with a Dynamic 365 Licensing guide (60 pages) released every month, we understand that you do not have the time to constantly stay up to date.  

At Q- Advise we specialize in Microsoft (second-hand) licenses. This means that we are here to help and advise you in choosing the right licenses. Because we are an independent party, we can provide you with honest and transparent advice! 

Want to know more about Microsoft Dynamics 365 Server licenses ?  Please contact the Microsoft licensing experts at Q- Advise ! 

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