As with any technology purchase, the cost of an ERP solution is one of the most compelling factors in the selection process. Unfortunately, it can also be the most confusing part. Some ERP vendors have very complex pricing schemes, hidden fees, and additional costs that only become apparent after purchase. Microsoft has produced guides to help businesses better understand licensing options and be prepared for the actual cost before they make any final decisions.

For a single user, pricing for Microsoft Dynamics GP Business Essentials (BE) solution starts at $2,250. The other option is Microsoft Dynamics GP Advanced Management (AM) solution. The prices may vary for both solutions depending on the options and the Microsoft partner you purchase your licenses from. Each partner is supposed to charge the same license fees, but the cost of implementation services vary greatly.  For more info download “Beyond Software: How to Estimate the Cost of ERP Implementation Services” or request an Instant Dynamics ERP Quote for price estimate of software, maintenance, implementation, and deployment.

One of our earlier posts may help you Compare Microsoft Dynamics GP Business Essentials versus Advanced Management: When Is The Advanced Management Edition Worth the Higher Price?

Most price variations reflect the wide range of deployment options and the amount of functionality you purchase for your Dynamics ERP solution. Microsoft Dynamics GP is available for Business Ready Licensing, which is for one solution, not one server. In other words, you could use multiple servers so long as you have a license that covers all of the users. Licenses for other necessary solutions, such as Microsoft SQL Server, are sold separately.

Licensing also dictates the type and amount of access. There three primary types of access:

 1. Full User - This requires a full user license. These users can access the Dynamics ERP system directly through the Windows-based rich client user interface (UI) or indirectly through another method, such as a web portal.

 2. Light User - These users can access Dynamics ERP systems indirectly through the web UI, SharePoint portal, Microsoft Office application, or a third party app.

 3. Employee Self Service (ESS) - These users access Dynamics through the rich client UI but use it for employee administration, time and attendance, travel, and expenses.

 For more information about Microsoft Dynamics ERP licensing options and details, you should download a new guide published by Microsoft called the Microsoft Dynamics ERP Licensing Guide. You can use this information to improve your understanding of how to license Microsoft Dynamics ERP solutions. 

The guide includes:

Overview of Licensing Requirements,

• Licensing Access to the Microsoft Dynamics ERP Licensing
• Licensing the Microsoft Dynamics ERP Solution
• Business Ready Enhancement Plan (BREP)
• Additional Licensing Requirements
• Five Steps to Counting Licenses for BRL

Note: Microsoft says this guide is NOT intended to help you in choosing Microsoft Dynamics products and services.  The examples presented in this guide are illustrative. If you want help determining the right ERP/accounting software solution for your organization, including the license requirements for a specific product or scenario contact us at CAL Business Solutions

Another helpful guide is: “30 Questions Every CFO Must Ask About the Cost of Accounting Software” available at www.calszone.com/30questions

By CAL Business Solutions, Connecticut Microsoft Dynamics GP Partner

October 17, 2011 by Anya Ciecierski, CAL Business Solutions

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