Understanding the upcoming changes to Dynamics Perpetual and On-premises Subscription Licensing:

1. Licensing Updates and Pricing Adjustments

Microsoft has recently made significant announcements regarding Dynamics 365 Business Central, Dynamics NAV, and Dynamics GP. For partners and customers, it’s essential to stay informed about these changes, so let’s break it down:

Dynamics 365 Business Central On-Premises (Perpetual) Licensing Changes

• Effective Date: Starting April 1, 2025.
• New Customer Limitations:

o New customers purchasing Dynamics 365 Business Central on-premises will be limited to subscription licensing.

o No further sales of Dynamics 365 Business Central on-premises perpetual licenses to new customers after this date.

• Existing Customers: Existing perpetual license holders (licensed prior to April 1, 2025) can continue to add functionality or users to their perpetual license.

Dynamics GP Licensing Modifications

• Effective Dates:

o April 1, 2025: New customers can only purchase subscription licensing for Dynamics GP. No further sales of Dynamics GP perpetual licenses to new customers after this date.

o April 1, 2026: Sale of Dynamics GP Subscription will be limited to existing customers. No further sales of Dynamics GP Perpetual or Dynamics GP Subscription licenses to new customers after this date.

• This announcement does not impact: the ability of Dynamics GP Perpetual customers licensed prior to April 1, 2025, with an active enhancement plan, to add functionality or users to their perpetual license, nor the ability of Dynamics GP Subscription customers licensed prior to April 1, 2026, with an active subscription, to add functionality or users to their subscription license.

While these changes may raise concerns for on-premises customers, we encourage you to consider the following:

- Microsoft offers flexible cloud licensing options that provide agility, scalability, and cost-effectiveness and due to their commitment to making migrations to the cloud as cost effective as possible, they have availed fruitful promotions, such as the Bridge to the Cloud Promotion, to achieve this.

Why consider the cloud?

Now you may be asking how a shift to the cloud can be beneficial to your organization after investing so much into your on-premises licensing. If this question has crossed your mind, let’s delve into why the cloud isn’t just a fluffy buzzword—it’s a game-changer:

1. Flexibility: Adapt or Get Left Behind

• Adaptability: The cloud effortlessly morphs to fit your business needs. Whether you’re experiencing rapid growth or navigating market shifts, cloud-based systems scale seamlessly, and with advanced analytics, you’re able to ensure you’re always one step ahead.

2. Security: Fort Knox for Your Data

• Robust Protection: Microsoft takes security seriously. Think of the cloud as your digital fortress. Encryption, multi-factor authentication, and vigilant monitoring keep your data safe from cyber threats.

• Role-Based Security: Role-Based Security within Dynamics 365 is a flexible and dynamic tool enabling businesses to manage access to information and features according to users' assigned roles. More details can be found in the below blog post: Unveiling the Power of Role-Based Security in Dynamics 365: A Deep Dive - 4 Sight Holdings

3. Anywhere Access: Work from Your Beach Hammock

• Work from Anywhere: It`s no secret that the pandemic changed the way we work forever. With cloud applications organizations can grant seamless remote access to anyone, anywhere. Whether you’re at the office, home, or on the go, the cloud ensures productivity follows you.

4. Cost-Efficiency: Pay-as-You-Go Magic

• Pay-as-You-Go Models: Forget hefty upfront costs. With cloud solutions, you pay for actual usage, allowing you to budget accordingly.

Are you ready to unlock the cloud potential or do you have questions or concerns around the upcoming changes to Dynamics 365 Business Central and Dynamics GP Changes? Contact This email address is being protected from spambots. You need JavaScript enabled to view it. today to connect with our experts for further assistance.