Microsoft has announced an upcoming price increase for its Dynamics 365 suite of business applications, set to take effect on October 1, 2024. Bryan Goode, Microsoft's corporate vice president for Business Applications and Platform, revealed the planned adjustments, attributing the decision to the continuous introduction of new features and enhancements. Specifically, Goode highlighted the addition of AI-powered tools providing real-time insights for marketers, sellers, and service agents, alongside advancements in operations optimization and financial process automation as key factors justifying the price increase.
Detailed Pricing Changes
The announced changes detail price increases ranging from 9.26 percent to 16.67 percent across various Dynamics 365 products. For instance, the Sales Enterprise package will see a rise from $95 to $105, marking a 10.53 percent increase. Similarly, the Finance and Supply Chain Management modules are set for a significant hike of 16.67 percent, adjusting from $180 to $210. These adjustments are positioned as reflecting less than the cumulative inflation over the past five years, with some products experiencing a more substantial increase than those announced by Salesforce in 2023.
Staggered Increase for US Government Users
The price revision will also be staggered for US government users to comply with local regulations. This segment will witness a 10 percent increase effective October 1, 2024, followed by an additional, albeit smaller, increase on October 1, 2025, to align with the commercial pricing strategy. Microsoft encourages stakeholders to consult the Dynamics 365 Release Planner for insights into the new features and enhancements that have been introduced to the platform, including upcoming Copilot facilities and mobile device optimizations, further underscoring the value these updates bring to the Dynamics 365 offerings.
