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Anya Ciecierski, CAL Business Solutions

Little Known Fact About Dynamics GP 2010 to Dynamics GP 2013 Pricing and 20% Promotion


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Microsoft Dynamics GP 2013 is set to be released in December 2012.  And along with it Microsoft will introduce a new pricing model called Perpetual Licensing. This means that if you buy Microsoft Dynamics GP 2010 now, on the current Business Ready Licensing price list, you will get a CREDIT for the amount you paid when you upgrade to Dynamics GP 2013.  And you will use that credit to “buy” Dynamics GP 2013 with the new pricing model.

This is a rare situation because normally when a client upgrades their Dynamics GP system there is no balance due. This only applies to new customers who buy Dynamics GP after October 1, 2012.

So why wouldn’t you just wait until after December 1, 2012 to buy Dynamics GP? Because until November 30, 2012 Microsoft is offering a 20% discount off the list price of Dynamics GP 201o. This means you can get the software right away, at a discounted price. And many companies will choose NOT to upgrade to Dynamics GP 2013 when it is first announced. Instead they will wait until other people test it out.  So you get to keep that cash in your pocket for a longer time.

But when you do upgrade to Dynamics GP 2013 you will need to pay the difference (if owed).  The good news is that we found out directly from Carl Radecke, Microsoft Dynamics WW Pricing Lead, that your credit paid for Dynamics GP 2010 will be calculated on the FULL list price, not the discounted price. That is a pretty important point. Here is a sample scenario:

  • Dynamics GP 2010 Business Essentials system, 6 concurrent users: Current List price $13,500, minus 20% discount = $2,700. Total paid now is $10,800
  • Under the new pricing model for Dynamics GP 2013 this same 6 user system will cost $14,000. Breakdown: $5000 (for 3 user starter pack) plus $3000 per additional user.
  • Since Microsoft will base the transition on the list price ($13,500) not the discount price ($10,800) this customer will only owe a balance of $500 when they upgrade to Dynamics GP 2013.
  • This means they will pay a total of $11,300 for their 6 users system. This is ultimately a savings of $2,700.
  • This also means they get to keep the whole $3,200 in their pockets for the entire time they use Dynamics GP 2010, before they upgrade.

The new Dynamics GP 2013 pricing model will be “simplified”. But during this transition period it is complex to those of us who are trying to read between the lines so we can advise our new clients on how to save money. Each scenario is different. In some cases you will save money by buying Microsoft Dynamics GP 2010 now with the discount, and in some cases you won’t. Let us provide a Microsoft Dynamics GP quote and then help you compare your pricing model options. Visit How to Buy Dynamics GP and set up a Discovery call. But don't miss the November 30, 2012 deadline!

UPDATE 12/3/2012: The deadline for this promotion has been extended until December 18, 2012. More details at: Updated Microsoft Dynamics GP 2013 Release Date post.

By CAL Business Solutions, Microsoft Dynamics GP Pricing Advice in Connecticut

 

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