The most common question I get when I talk to companies is, “
With the next release of Microsoft Dynamics GP 2013 (scheduled for the end of 2012) Microsoft is promising to simplify that process. They are introducing a new pricing model called “Perpetual Licensing”. The changes will result in far fewer individual line items in the price list, with the aim of making it easier for partners to generate quotes and customers to understand them. When this was announced at the Microsoft Worldwide Partner Conference earlier this year they promised the new pricing would be so easy you could calculate it on a cocktail napkin! A
The changes will reduce prices for many customers, especially those with less than 100 users. (At CAL we have never sold Microsoft Dynamics GP for more than 100 users, so we feel confident it will help all our future clients.)
Dynamics GP 2013 will offer the Starter Pack and the Extended Pack with either Full or Limited users. All users will be concurrent.
The Starter Pack consists of finance and distribution functionality with THREE full user licenses. Microsoft currently says it will be priced at $5,000. (In current BRL licensing, the same package would cost almost $7,000.) The Extended Pack, which will be a one time fee of an additional $10,000 (and covers all users), includes nearly all other additional features in the current price list.
Microsoft believes this new model of user types and functionality packs will meet the needs of 95% of current customers without increasing their costs. Here is a scenario presented at WPC:
A manufacturing company with 10 users which costs $56,000 under the current licensing will cost $36,000 with Dynamics GP 2013. (This takes into account the Extended Pack's at $10,000 and $3,000 for each Full User and $600 Limited User licenses.)
If you have more than 100 users, the deal is not so good. For a company with 120 users that does warehousing and distribution, a $332,695 system will cost $372,000 with perpetual licensing. In other words, you should look at Microsoft Dynamics AX, which will be more affordable in this scenario.
While the new pricing will eventually be simpler for us and for our customers, right now there are still many questions about all the specific details. We will be publishing additional details in the upcoming weeks.
One thing I can tell you now is that companies who purchase Microsoft Dynamics GP 2010 BEFORE October 1, 2012 will be automatically “grandfathered” in to the old pricing and the attractive license migration plan. In other words, Microsoft plans to treat their existing customers well. They will be able to upgrade to the new pricing with some perks. If you purchase Microsoft Dynamics GP before October 1, 2012, you are considered an existing customer and you get those perks too. Even if you just buy ONE license, and plan to buy more later. I will be writing more about this soon. Stay tuned!
By CAL Business Solutions,