Microsoft Dynamics 365 Licensing Shake-Up: Fact or Fiction?

The Rumor Mill is Churning 

Microsoft’s licensing models are evolving—fast. While Dynamics 365 still largely relies on traditional per-user licensing, whispers from partners and analysts suggest a shift toward hybrid entitlement-based models, like what we’ve already seen in Azure and Microsoft 365. 

But is this just speculation, or is there real evidence? Let’s break down what we know—and what’s still unconfirmed. 

Proof: Azure & M365 Already Use Hybrid Licensing

Microsoft has been quietly moving away from pure per-user licensing in its other cloud products. Here’s how: 

Microsoft 365: User + Feature-Based Tiers 

• Basic/Standard/Premium tiers grant different feature sets (e.g., M365 E3 vs. E5). 
• Add-ons like Copilot for Microsoft 365 ($30/user/month) require separate entitlements. 
• Shared device licensing (e.g., frontline workers) doesn’t require a full user license.

Azure: Resource-Based Consumption 

• Pay-as-you-go models for compute, storage, and AI services. 
• Role-based access control (RBAC) decouples permissions from strict user counts. 
• Azure AI & Automation (e.g., bots, Cognitive Services) bill by API calls, not users. 

What This Tells Us:
Microsoft prefers flexible, scalable licensing—especially for AI-driven workloads. Dynamics 365 is likely next. 

The Gossip: What’s Leaking About Dynamics 365

While Microsoft hasn’t officially announced a full entitlement-based model for D365, here’s what insiders are saying: 

Rumor #1: “Function-Based” Licensing 

• Instead of buying “D365 Sales Enterprise (per user),” orgs might purchase “Sales Function Access” for teams. 
• Example: A customer service team gets “Case Management Entitlements” instead of individual licenses. 

Rumor #2: AI/Process-Specific Licensing 

• Copilot for Dynamics 365 is already an add-on—will other AI features follow? 
• Could automated workflows (e.g., invoice processing bots) require their own “entitlements”? 

Rumor #3: External User Flexibility 

• Microsoft already relaxed licensing for external users in 2023. Will this expand further? 

Why This Makes Sense for Microsoft

1. AI Doesn’t Fit Per-User Models 

– If a Copilot AI bot handles 100 customer interactions/day, does that count as a “user”? 

2. Complexity is a Pain Point 

– Customers complain about D365’s licensing maze (Sales vs. Customer Service vs. Field Service SKUs). 

3. Competitors Are Doing It 

– Salesforce offers capacity-based pricing (e.g., “CRM Platform Edition”). 

What Should You Do?

• Watch for Q4 2024 announcements (Microsoft typically previews changes 6+ months ahead). 
• Audit your licenses—know which users/processes could shift to entitlements. 
• Talk to your Microsoft rep about early insights. 

Final Thought: Is This Guaranteed? 

No—but the writing’s on the wall. Microsoft wants more flexibility, better AI monetization, and simpler licensing. If Azure and M365 are any indication, Dynamics 365’s licensing shakeup is coming soon. 

What do you think? Will entitlement-based licensing help—or hurt? Contact us at [email protected] and let’s discuss your Dynamics 365 needs.