In October of 2011, Microsoft has changed how they license their Dynamics ERP product line. The new software licensing is likely to change the licensing landscape throughout the ERP industry.
For every ERP vendor, it seems there is a different licensing arrangement. Most ERP vendors base their software licenses on the number of applications (or modules) needed and the number of users. But here comes the hard part – each vendor classifies applications differently and they count users differently.
Why Are ERP Licensing Policies So Confusing?
ERP software licenses can be assigned for named users, concurrent users, view only users, “light” users, and device users. Some software vendors will price applications based on size of the enterprise, the number of servers or even by the number of transactions.
ERP application definition also varies greatly. Some ERP vendors will bundle certain modules, while others seem to have a multi page application list.
Buyers are often confused and who can blame them. Without a guide to help, ERP vendors will often take different approaches to develop a price quotation. Buyers often make erroneous assumptions because they are looking at proposals that really are not “apples to apples” comparisons.
The Simplified Plan for Microsoft Dynamics
Now enters the new plan for Microsoft Dynamics. Their ERP licensing is now based on named users. They have a few user categories, but they are easy to understand. The price is based solely on user counts by category. All ERP functions are now included in their ERP suite.
Everyone we have talked with feels this new 2011 licensing plan is easier to understand. The new plan makes a lot of sense. Perhaps other ERP vendors will take note, and the ERP industry will move to plans that are easier to compare.
If you need help understanding the various ERP vendors and their licensing options, Ultra can provide ERP selection assistance.