Updated: July 13, 2020 (November 15, 2010)

  Analyst Report

Incentives Push Dynamics Growth

My Atlas / Analyst Reports

744 wordsTime to read: 4 min
Rob Helm by
Rob Helm

As managing vice president, Rob Helm covers Microsoft collaboration and content management. His 25-plus years of experience analyzing Microsoft’s technology... more

Dynamics resellers will get new pricing over the next two years to encourage customer and license growth. The planned pricing also reduces reseller discounts on the Business Ready Enhancement Plan (BREP), which delivers Microsoft software upgrades and other benefits to existing customers. The pricing will shift resources toward resellers who most actively pursue new customers and license sales, which could ultimately expand the Dynamics installed base, but some resellers could struggle to adapt.

Incentives for Growth, Renewals

The plan alters reseller discounts off list price for licenses and BREP in the Dynamics channel. These discounts in turn determine the gross profit margin that resellers earn on sales of licenses and BREP for the Dynamics enterprise resource planning (ERP) applications, namely Dynamics AX, NAV, GP, and SL, as well as the Dynamics customer relationship management (CRM) product in the Dynamics channel. (Dynamics CRM is also sold through standard Microsoft volume licensing channels, which are separate from the Dynamics channel and are not affected by the changes described here.)

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