Chapter 4
Cost of Dynamics 365
In this chapter, we will show you exactly how you can calculate the cost of Dynamics 365 in Malaysia in order to estimate the initial investment of Dynamics 365 applications for your business.
Chapters:
We will show you the official cost of Dynamics 365 software licenses in MYR provided by Microsoft as well as how you can calculate the cost of Dynamics 365 software licenses in USD and convert it into MYR.
Because not all Dynamics 365 applications are having the pricing in MYR. Therefore, you will need to calculate it from USD to MYR.
Also, we will show you other costs of Dynamics 365 such as professional services and others in order to fully understand the associated cost with Dynamics 365 so you can calculate the initial investment.
Contents
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Cost of Dynamics 365 Software License
The first cost included when purchasing a Dynamics 365 application is the software license cost.
The software license cost is different for each application and on top of that, some of the applications have several variants of user licenses with different pricing ranges. For example, Dynamics 365 Business Central has three different user licenses each offering access to different capabilities.
Therefore, the cost of the Dynamics 365 software license depends on the application you choose.
On top of that, Microsoft provides a cost-effective way for a single Dynamics 365 user to obtain full user licensing for multiple products. Licenses for products that provide core business functionality qualify as base licenses. (See the table below.)
Each has one or more additional applications that are frequently used by people in the same roles and that qualify as attached licenses for that user. (These are sometimes referred to as subsequent qualifying applications.) To learn more download the Licensing guide and visit the section “Attach licensing details”
Practical Example #1 (In MYR)
In the first example, we will use pricing provided by Microsoft in MYR. (Here is Microsoft pricing in RM)
For example, let’s say that Agile Dynamics Solutions (ADS) wants to purchase Dynamics 365 Sales Professional and planning to have 25 users.
On top of that ADS also wants to purchase 5 attach/subsequent licenses of Dynamics 365 Customer Service Professional.
With that here, we can see the pricing charts of those applications in RM.
(Note: The pricing might change at any time without any notice. Therefore, take this only as an example and do your calculation by current up-to-date pricing.)
And here is a table of Microsoft Dynamics 365 Software licensing. It’s also important to note that Microsoft Dynamics 365 software licenses are priced per month, but the minimum duration requirement is one year (12 months).
| Item | Description | Qty | Unit Price (RM)/Month | Unit Price (RM)/Year | Total Price |
|---|---|---|---|---|---|
| 1 | Sales Professional License | 25 | 273 | 3,276 | 81,900 |
| 2 | Customer Service Professional Attach License | 5 | 84 | 1,008 | 5,040 |
| – | – | – | – | – | – |
| Total Price (Without SST) | 86,940 | ||||
| SST 6% | 5,216.4 | ||||
| Total Price (With SST) | 92,156.4 |
With this calculation, we can see that in total ADS would pay RM 92,156.4/year for Microsoft Dynamics 365 Sales Professional and Dynamics 365 Customer Service Professional Attach software licenses.
However, not all applications are having displayed pricing in RM. Therefore, in most cases, you will need to look at the official US pricing of Dynamics 365.
For example, the pricing for Dynamics 365 Business Central is missing as well as for Dynamics 365 Finance, and Supply Chain Management.
Practical Example #2 (From USD to MYR)
In the second example, we will use pricing provided by Microsoft in USD and convert it into MYR currency. (Here is the pricing of Dynamics 365 in USD.)
For example, let’s say that Agile Dynamics Solutions (ADS) wants to purchase Dynamics 365 Business Central and planning to have 10 users, 6 Essentials licenses, 2 Premium licenses, and 2 Team Members.
On top of that ADS also wants to purchase 3 attach/subsequent licenses of Dynamics 365 Sales Professional.
With that here is the pricing chart of the full user access license and attach or subsequent license. To learn more visit this page. Dynamics 365 Team Members license is missing in this chart, but it’s priced at USD 8. Visit this page to learn more.
And here is a table of Microsoft Dynamics 365 Software licensing with the assumption the exchange rate is USD 1 = MYR 4. It’s also important to note that Microsoft Dynamics 365 software licenses are priced per month but the minimum duration requirement is one year (12 months).
| Item | Description | Qty | Unit Price (USD) | Unit Price (RM)/Month | Unit Price (RM)/Year | Total Price (RM) |
|---|---|---|---|---|---|---|
| 1 | Essentials License | 6 | 70 | 280 | 3,360 | 20,160 |
| 2 | Premium License | 2 | 100 | 400 | 4,800 | 9,600 |
| 3 | Team members License | 2 | 8 | 24 | 288 | 576 |
| 4 | Attach Sales Professional | 3 | 20 | 80 | 960 | 2,880 |
| – | – | – | – | – | – | – |
| Total Price (Without SST) | 33,216 | |||||
| SST 6% | 1,992.96 | |||||
| Total Price (With SST) | 35,208.96 |
With this calculation, we can see that in total ADS would pay RM35,208.96/year for Microsoft Dynamics 365 Business Central software licenses.
*Note: Be aware that the exchange rate in this article is only for demonstration purposes and the correct one will be given when you receive the PO. The exchange rate is provided by Microsoft and not Microsoft partners. For more precise calculations used your current exchange rate.
Practical Example #3 (From USD to MYR)
In the third example, we will use pricing provided by Microsoft in USD and convert it into MYR currency. (Here is the pricing of Dynamics 365 in USD.)
For another example, let’s say that Agile Dynamics Solutions (ADS) wants to purchase 20 full-user licenses of the Dynamics 365 Finance application, 20 full-user licenses of the Dynamics 365 Supply Chain Management Application, and 10 attach/subsequent licenses of Dynamics 365 Commerce.
With that here is the pricing chart of the full user access license and attach or subsequent license. To learn more visit this page.
And here is a table of Microsoft Dynamics 365 Software licensing with the assumption the exchange rate is USD 1 = MYR 4. It’s also important to note that Microsoft Dynamics 365 software licenses are priced per month but the minimum duration requirement is one year (12 months).
| Item | Description | Qty | Unit Price (USD) | Unit Price (RM)/Month | Unit Price (RM)/Year | Total Price (RM) |
|---|---|---|---|---|---|---|
| 1 | Finance Full License | 20 | 180 | 720 | 8,640 | 172,800 |
| 2 | SCM Full License | 20 | 180 | 720 | 8,640 | 172,800 |
| 3 | Attached Commerce | 10 | 30 | 120 | 1440 | 14,400 |
| – | – | – | – | – | – | – |
| Total Price (Without SST) | 360,000 | |||||
| SST 6% | 21,600 | |||||
| Total Price (With SST) | 381,600 |
With this calculation, we can see that in total ADS would pay RM381,600/year for Microsoft Dynamics 365 Finance, Supply Chain Management, and Commerce licenses.
*Note: Be aware that the exchange rate in this article is only for demonstration purposes and the correct one will be given when you receive the PO. The exchange rate is provided by Microsoft and not Microsoft partners. For more precise calculations used your current exchange rate.
Cost of Dynamics 365 Professional Services
The second associated cost with Dynamics 365 is professional services such as implementation, customization, etc.
The pricing for professional services is set by Microsoft partners themselves, thus, every partner provides a different price range for their services.
It’s also important to note that professional services are a one-time cost, unlike subscriptions.
Professional services are usually charged in two ways:
- Man-day rate: Microsoft partners are charging per day for their services and depending on the scope of work, they will provide information on how long it is expected to take. This is for a more personalized and customized approach.
- Packages: Microsoft partners also might provide a standard package for their services for a certain application. This is more general and includes only the basic setup of Dynamics 365 Applications.
To find out more about Partner’s pricing please contact them. To learn more about Agile Dynamics Solutions pricing for professional services in Malaysia and Cambodia, kindly contact us and our experts will get in touch with you.
With that being said, if you have chosen a package, then the cost of Dynamics 365 implementation is straightforward.
Package Pricing Example
For example, let’s say Agile Dynamics Solutions have chosen a package to implement Dynamics 365 Business Central and the cost is RM 250,000.
| Item | Description | Qty | Unit Price (RM) | Total Price (RM) |
|---|---|---|---|---|
| 1 | Business Central Implementation Package | 1 | 250,000 | 250,000 |
| – | – | – | – | – |
| Total Price (Without SST) | 250,000 | |||
| SST 6% | 15,000 | |||
| Total Price (With SST) | 265,000 |
Again, this is only hypothetical and you will need to contact your Microsoft Partner to get any price for their packages if they have them.
Not every partner provides packages.
Man-Day Pricing Example
If you do not choose the package and will need a more personalized approach, then you will be charged per man-day.
For example, let’s say you want to implement Dynamics 365 Business Central Financial and Warehouse Management modules, as well as you need integration with 3rd party Apps.
Now on average, it can take somewhere between 1-3 months to implement one module in Dynamics 365 Business Central. This is depending on the amount of customization, data, and other factors. Therefore, you will need to consult with your Microsoft Partner to find out exactly how long would it take in your case.
In this scenario, let’s assume the financial and warehouse management module would take two months to implement each. So, 60 days per module + another 30 days for integration of 3rd party apps.
And the man rate is RM2,000 per day. (Again, remember that this is only hypothetical, and Microsoft Partners can charge more or less than this.)
So here is the calculation:
| Item | Description | UOM | Qty | Unit Price (RM) | Total Price (RM) |
|---|---|---|---|---|---|
| 1 | Business Central Financial Module | Man-day | 60 | 2,000 | 120,000 |
| 2 | Business Central Warehouse Module | Man-day | 60 | 2,000 | 120,000 |
| 3 | Integration with 3rd Party Apps | Man-day | 30 | 2,000 | 60 |
| – | – | – | – | – | – |
| Total Price (Without SST) | 300,000 | ||||
| SST 6% | 18,000 | ||||
| Total Price (With SST) | 318,000 |
With that being said, Dynamics 365 Business Central modules take significantly less time to implement than applications like Dynamics 365 Finance or Dynamics 365 Supply chain which can take somewhere between 6-24 months or even longer.
Again, it depends on the company’s requirements, thus, you should consult with your Microsoft Partner.
Other Costs of Dynamics 365
Lastly, there can also be other costs of Dynamics 365 which can include other services such as:
- Helpdesk Support
- Support and Maintenance
- Third-Party applications or Purchase apps from microsoft.com
- Training
For example, in most cases, you will need to also purchase at least helpdesk support in cases of any incidents.
So, let’s say that Agile Dynamics Solutions have also taken Helpdesk Support services with a cost of RM10,000 per year for 25 incidents and 10 training sessions with a cost of RM2,000 per training session to improve the adoption rate. With that here is the calculation.
| Item | Description | UOM | Qty | Unit Price (RM) | Total Price (RM) |
|---|---|---|---|---|---|
| 1 | Helpdesk support (25 incidents | Unit | 1 | 10,000 | 10,000 |
| 2 | Training | Unit | 10 | 2,000 | 20,000 |
| – | – | – | – | – | – |
| Total Price (Without SST) | 30,000 | ||||
| SST 6% | 1,800 | ||||
| Total Price (With SST) | 31,800 |
Again, there can be additional costs. For example, if you choose an on-premises solution then it could involve server costs, yearly updates to the latest version, etc.
However, for this case let’s keep it simple.
Total Cost of Dynamics 365
So now that we know all the involved costs of Dynamics 365, let’s create the costing summary.
For this, I will take the cost of the Dynamics 365 software license from practical example #2, and the cost of Dynamics 365 implementation services I’ll take the calculation from the man-day pricing example and add the other cost as well.
With that here is the costing summary or total cost of Dynamics 365.
| Item | Description | Total Price (RM) |
|---|---|---|
| 1 | Yearly Subscription | 35,208.96 |
| 2 | One-Time Implementation Services | 318,000 |
| 3 | Helpdesk Support + Training | 31,800 |
| Total Costs | 385,008.96 |
With that, we can see that the total cost of Dynamics 365 for Agile Dynamics Solutions in total RM385,009 after rounding.
In this case, I have chosen Dynamics 365 Business Central as it is one of the preferred choices of most businesses. However, as you could see, the calculation goes the same for all Dynamics 365 applications.
So, this is how you can calculate the cost of Dynamics 365. As you can see there are a lot of grey areas and without consulting Microsoft partners, you won’t be able to calculate the exact cost of Dynamics 365.
If you are looking to migrate or implement Dynamics 365 Apps in Malaysia or Cambodia, contact us to provide you with more information, quote, personalized demo, and more.
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