Module Based Licensing vs Business Ready Licensing
Note: With the release of Microsoft Dynamics GP 2013 Microsoft Dynamics will move to the “Perpetual Licensing Model“. The information below will no longer apply.
As your business functionality needs change, so do your software licensing needs. Microsoft Dynamics GP customers who purchased Microsoft Dynamics prior to 2006 are on “module-based pricing”. This means you purchased only the specific modules and functionality you needed. Since 2006 Microsoft has changed to “user-based pricing”. This means you pay one price for each concurrent user and this license has access to all the modules and functionality. You may not use all the functionality, but you have it available at no extra cost. Customers on the old module base pricing can stay on this licensing model. But you have the option to upgrade to the new Business Ready Licensing model at any time, and you receive a full investment credit on the price paid for your original system.
Frequently Asked Questions
1) What is Module Based Licensing (MBL) vs Business Ready Licensing (BRL)?
Customers who purchased Microsoft Dynamics prior to 2006 under module-based pricing (MBL). This means you purchased only the specific modules (such as GL, AP, AR) and the functionality you needed. Since 2006 Microsoft has changed to user-based pricing (BRL). This means you pay one price for each concurrent user and this license has access to ALL the modules and functionality that Dynamics GP now offers. You may not choose to use all the functionality, but you have it available at no extra cost.
2) How do I know which licensing system I have?
You can ask your Microsoft partner. Or you can look at your customer information in CustomerSource. If your system is called Professional or Standard then you are on the old pricing model. If it says Business Essentials or Advanced Management then you are on the new Business Ready Licensing model?
3) Is it required that I upgrade to Business Ready Licensing?
No, customers who purchased their systems prior to the release of Business Ready Licensing are “grandfathered’ in. As long as you keep current on your enhancement maintenance plan you can continue to use the system and purchase new users and modules under the old pricing model. If you let your enhancement plan expire, you will be required to upgrade to Business Ready Licensing when you decide to reinstate your maintenance plan.
4) Why would I want to upgrade to Business Ready Licensing?
a) More functionality: There are 25 modules included in the Business Essentials Edition and 48 modules included in the Advanced Management edition. You would have access to ALL this functionality to use as you need it now or in the future. So you pay one price now but are investing in the future.
A few of the most popular modules you would get included with BRL are:
- Electronic Banking Suite: SafePay, EFT (Electronic Funds Transfer), Electronic Bank Reconciliation
- Fixed Assets
- Intercompany Processing
b) Get the missing piece: Is there just one module you wish you had? It is worth comparing the cost of this purchase vs. a License Model Transition. It could be that for a lower or comparable cost you could get not only the new module you need now but all the other modules too. For example, the cost to purchase just the Fixed Assets Module under your MBL pricing is $2,800-$4000.
c) Simplify licensing: BRL can greatly simplify management of your licensing, so you can focus just on the number of concurrent users, instead of on mapping out a detailed list of modules. Of course, you can still limit security settings to control which users have access to specific modules.
5) How much does a License Model Transition cost?
If you are current on your enhancements plan, you have the option to upgrade to the new Business Ready Licensing model at any time, and you receive a full investment credit on the license cost of your original system (protected list price). Plus, Microsoft often runs promotions for License Model Transition – either a fixed one time fee or fixed per-user cost. Check current Microsoft Dynamics GP customer promotions.
6) If I upgrade are there additional costs besides the license fees?
Implementation Services: Changing to the new licensing model is as simple as giving you new registration keys. There is no cost for this. However, if you want CAL does set up and training on new modules this would be an additional cost.
Annual Maintenance Fee: When you upgrade to BRL your annual maintenance fee will likely increase as it will be based on the full system list price. In other words, what you would have paid without a discount. We can help you calculate this cost as you compare your options.
7) How do I know if I need to upgrade to Business Essentials or Advanced Management?
If you currently own one module that is only available in Advanced Management, you will be upgraded to this edition, regardless if you currently own the Standard or Professional edition. You will keep any and all functionality you owned before the transition, you do not need to rebuy any A la carte modules. For a full description of all the modules available with Business Ready Licensing download the module guide at www.calszone.com/guide
Interested in learning more about a License Model Transition? Contact CAL today online or call 860-485-0910