Microsoft Dynamics GP runs on Microsoft SQL Server. So as a user, even if you not aware of it, you are using Microsoft SQL Server.

As of October 2012 Microsoft has announced a change to their SQL Server arrangement with Microsoft Dynamics. Customers must have a valid Microsoft SQL Server license for each deployed server. Starting in October 2012 Microsoft Dynamics GP customers will be required to have the appropriate number of server licenses based on their server configuration.  These licenses will be free until December 31, 2012. Starting Jan 1, 2013 the Microsoft SQL Server 2008 R2 Runtime License (price per server) will cost $6 per Standard Edition and $51 per Enterprise Edition for US Customers.

Existing Microsoft Dynamics GP customers that have licensed Microsoft SQL Server Runtime CAL’s from Microsoft Dynamics prior to October 1, 2012 will be automatically granted a number of servers based on the number of CAL’s owned as of October 1, 2012. You will be given the appropriate version, either Standard or Enterprise, based on your system. You will also be granted 1 additional version appropriate Microsoft SQL Server 2008 R2 Server License per 25 CALs.

These licenses will automatically be put into your customer account in VOICE during the first half of calendar year 2013.  But your Protected List Price (PLP) will not be impacted. (So you will not pay additional enhancement fees annually).

Microsoft SQL Client Access Licenses (CALs) are licensed per named user or per device and are NOT licensed for concurrent use. Customers must license a CAL for each named user accessing Microsoft Dynamics GP. (Unless the user only accesses the application from a device that already has a license).

Why does Microsoft Dynamics need to do this?  I heard it had to do with anti-monopoly type regulations.  Microsoft can’t give it to Dynamics ERP customers for free if they don’t give it to SAP and Sage and other competing products too. So to be fair they will charge a nominal fee.

It is very important that you realize that these licenses are ONLY allowed to be used with your Microsoft Dynamics GP product. You are technically not allowed to use this license with any other application, including Microsoft Dynamics CRM. It might be tempting to do this, but we have had at least one client tell us recently that Microsoft surprised them with a licensing audit.

If you have any questions about your SQL Server licensing, as it relates to Microsoft Dynamics GP, contact CAL Business Solutions. Get more information on Microsoft Dynamics GP Hardware Requirements and Costs.

Source: Microsoft Announces Pricing Changes to SQL Server Licensing for Microsoft Dynamics GP

By CAL Business Solutions, Connecticut Microsoft Dynamics GP Partner