Dynamics 365’s Premium Future: Benefits and Potential Risks

• Dynamics 365 has added new Premium subscriptions for advanced capabilities, rather than relying on the usual add-on purchasing option.
• The Premium features fill gaps in Dynamics 365 functionality that could help customers save money by replacing third-party or custom solutions.
• However, introducing Premium subscriptions to a product family is typically a long-term Microsoft strategy to increase revenue.
• Customers should expect Premium subscriptions to receive exclusive features that will ultimately result in upgrading some users.

Three new Dynamics 365 Premium User Subscription Licenses (User SLs) were released in the last year, providing new high-end licensing options for the four most important applications: Sales, Customer Service, Finance, and Supply Chain Management. Currently, the new Premium User SLs provide advanced capabilities that will only interest select customers. However, Microsoft often introduces higher-priced subscriptions that receive exclusive features over time that ultimately force customers to upgrade some users. While the threat is not immediate, customers should watch for changes that require relicensing an increasing number of their users, increasing budgets.