Offerings will increase by as much as 17 percent and as little as 9 percent.

Microsoft plans to increase prices for a variety of Dynamics 365 offerings on Oct. 1 by an average of 12 percent or $17 per user or per device per month as the vendor adds more generative artificial intelligence functionality and options for the suite.

This marks the first price update for users of the Redmond, Wash.-based vendor’s relationship management (CRM) and enterprise resource planning (ERP) suite in more than five years, according to a blog post Friday. Offerings will increase by as much as $30 and as little as $10 – as much as 17 percent and as little as 9 percent.

“Each year, we release hundreds of new features and enhancements designed to help people work smarter, reclaim time, and collaborate seamlessly,” Bryan Goode, Microsoft’s corporate vice president of business applications and platform, said in the blog post.

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Microsoft Dynamics 365 Prices

CRN has reached out to Microsoft for comment. The vendor is a member of CRN’s 2024 Channel Chiefs and has more than 400,000 channel partners worldwide.

Michael Goldstein, CEO of Fort Lauderdale, Fla.-based Microsoft partner LAN Infotech – a member of CRN’s 2024 MSP 500 – told CRN in an interview that D365 has been benefiting from Microsoft’s GenAI push lately and added plenty of capabilities since the 2019 price change to justify an increase.

Goldstein felt similarly when the vendor raised prices for its Microsoft 365 suite back in 2021 after 10 years with the same cost, he said.

“We have seen a lot of value added in that time,” he said.

Prices for Dynamics 365 on-premises customer engagement and operations products will increase by the same percentage as the corresponding cloud versions, according to Microsoft. D365 Business Central and other offerings not explicitly named by Microsoft will keep the same price.

The price changes kick in Oct. 1 for new customers and existing ones upon their renewal date as of Oct. 1, according to Microsoft. U.S. government prices for the same products will increase first by 10 percent Oct. 1 and then on Oct. 1, 2025, they will have a smaller increase to equal commercial prices.

D365 Price Changes Breakdown

The price increases hit 14 D365 offerings. Facing the largest hikes of about 17 percent – or $30 per user per month – are the following offers:

• D365 Finance
• D365 Supply Chain Management
• D365 Commerce

Those three D365 offerings will increase from $180 to $210, according to Microsoft.

The following D365 offerings will increase from $145 to $160, up about 10 percent.

• D365 Sales Device
• D365 Customer Service Device
• D365 Field Service Device

And the following D365 offerings will increase from $95 to $105, an increase of about 11 percent:

• D365365 Sales Enterprise
• D365 Field Service
• D365 Customer Service Enterprise

D365 Human Resources and Project Operations will increase from $120 to $135, up about 13 percent. D365 Operations Device will increase from $75 to $85, up about 13 percent.

Finally, Microsoft Relationship Sales will increase from $162 to $177, up about 9 percent. All tiers of MRS per user per month prices will increase by $15, according to Microsoft.

In January, during Microsoft’s latest quarterly earnings call, the vendor reported that Dynamics products and cloud services revenue increased 19 percent year over year. Dynamics 365 revenue grew 24 percent year over year.

Microsoft said at the time that Dynamics revenue should grow in the mid-teens the following quarter. The vendor will report those quarterly earnings on April 25.