Dynamics 365 (On-premises) Licensing Guide-April 2018
Dynamics 365 (On-premises) – Introduction
Microsoft Dynamics 365 is the next generation of intelligent business applications in the cloud. Dynamics 365 unifies CRM and ERP capabilities by delivering new purpose-built applications to help manage specific business functions for full users, including Dynamics 365 for Sales (On-premises) and Dynamics 365 for Customer Service (On-premises), as well as a lower tier application for light users: Dynamics 365 for Team Members (On-premises).
Basic Licensing Requirements
For software deployments, Microsoft Dynamics 365 (On-premises) is licensed under the Server + Client Access License (CAL) model, which requires that you license the server(s) running the software as well as the users and/or devices that connect to the solution.
With Dynamics 365 (On-premises) the Dynamics 365 Server License(s) are included with purchase of the Client Access License(s).
There is only one server edition available for Microsoft Dynamics 365 (On-premises):
Microsoft Dynamics 365 Server
Microsoft Dynamics 365 (On-premises) Server is comprised of the Microsoft Dynamics 365 Server with the December Update for Dynamics 365 applied to it. This server offers a rich feature set and supports multi-tenant deployments. It is licensed along with the purchase of Dynamics 365 Client Access Licenses. You can add additional users at any time by purchasing additional CALs and there is no limit on the number of users who can access the server; the number of users is limited only by your server capacity.
Server and Client Access Licenses
All Microsoft Dynamics 365 (On-premises) customers need to license:
• Microsoft Dynamics 365 (On-premises) software running on the server(s), which is (are) included with the purchase of the Microsoft Dynamics 365 (On-premises) Client Access Licenses (CALs).
• Access to the Microsoft Dynamics 365 (On-premises) software by users or devices, which is licensed through CALs.
Microsoft Dynamics 365 (On-premises) Server offers a rich feature set supporting multi-tenant deployments. Users or devices accessing the server software on multi-tenant deployments need to purchase the Microsoft Dynamics 365 (On-premises) CALs.
Licensing Requirements for Internal Users
Customers may license access to the Microsoft Dynamics 365 by purchasing a CAL for every internal user who directly or indirectly accesses the Microsoft Dynamics 365 server software, files, data content, or any “Microsoft Dynamics 365 (On-premises) functionality”.
“Microsoft Dynamics 365 (On-premises) functionality” is any service or feature of Microsoft Dynamics 365 (On-premises) that allows a user to view, manipulate, input, query, or otherwise structure “Live Data”. “Live Data” is information that, via user action, dynamically writes to, reads from, or synchronizes with Microsoft Dynamics 365.
Internal users are required to have the appropriate client access licenses, regardless of their direct or indirect connection to the product.
Dynamics 365 (On-premises), has two types of CALs:
• User CALs are assigned on a “named user” basis, meaning each user requires a separate CAL; User CALs cannot be shared but an individual with a User CAL may access the service through multiple devices without need for separate Device CALs. Purchasing a User CAL might make more sense if your company employees need to have roaming access to the corporate network using multiple devices, or from unknown devices, or if there are simply more users than devices in the organization.
• Device CALs license access on a device. Any user may access a licensed device without the need for a separate User CAL. Device CALs may make more economic and administrative sense if your company has workers who share devices, such as for shift-based work.
Users can convert CALs from Device CALs to User CALs, or vice versa, on their Software Assurance renewal.
A user or device licensed with a CAL may access any number of instances of Microsoft Dynamics 365 (On-premises), or earlier versions running on the organizations servers.
Note: Only the user or the device requires a CAL, not both. If the user of a device is licensed with a CAL, then the device does not need a Device CAL. Likewise, if the device is licensed with a Device CAL, then the user does not need a CAL. You can mix both User and Device CALs in your deployment.
Licensing Requirements for External Users
External users are end customers and third-party users of the organization or its affiliates and do not require Client Access Licenses (CALs) to access Microsoft Dynamics 365. External user access is included with the organization’s internal user CALs, unless using the Microsoft Dynamics 365 client applications or Graphical User Interface (GUI).
In addition, external users include off-site vendors not on an employee-like relationship with the organization or its affiliates (e.g. IT help desk support vendors serving multiple customer organizations).
However, external user access does not extend to the customer or the customer’s affiliate’s contractors, vendors, or agents providing business processes on the customer’s behalf or using Microsoft Dynamics 365 to manage any portions of their business. In this sense, the customer may not use Microsoft Dynamics 365 to provide business process outsourcing services to its clients.
Multiplexing refers to the use of hardware or software that a customer uses to pool connections, reroute information, or reduce the number of devices or users that directly access or use Microsoft Dynamics 365 software (On-premises). Multiplexing does NOT reduce the number of CALs of any type required to access the Microsoft Dynamics 365 software. Any user or device that accesses Microsoft Dynamics 365 software (On-premises)—whether directly or indirectly—must be properly licensed.
Microsoft Dynamics 365 CALs (On-premises) are required for users or devices that directly input, query, or view data from the Microsoft Dynamics 365 software (On-premises). Similarity, Microsoft Dynamics 365 CALs (On-premises) are required for users or devices that input data into, query, or view data from Microsoft Dynamics 365 software (On-premises) through a pooling device. Pooled connections use a non-interactive user account in Dynamics 365 (On-premises) that can access the system but only via the web service layer. Internal users and devices accessing Microsoft Dynamics 365 (On-premises) data indirectly through a portal or via an API to a separate service such Microsoft Outlook must also be properly licensed, regardless of if they are set up as a Dynamics 365 On-premises user in the service, for example:
• Any user or device that accesses the service, files, data, or content provided by the software that is made available through an automated process requires a Microsoft Dynamics 365 CAL
• The number of tiers of hardware or software between the Microsoft Dynamics 365 software and the user or devices that ultimately use its data, services, or functionality does not affect the number of CALs required.
For additional information about multiplexing refer to the Microsoft Volume Licensing Brief Multiplexing—Client Access License (CAL) Requirements.
Note: Licensed users may manually rekey information (when coming from non-licensed users) into the Dynamics 365 software (On-premises). This scenario is not considered multiplexing.
Dual Use Rights
One of the advantages of Microsoft Dynamics 365 is dual use rights. This allows customers the option to deploy the server software either in Microsoft’s cloud or in a private on-premises or partner-hosted cloud. In some cases, customers may want to deploy both types of instances simultaneously. This might be done to help with migrating a Microsoft Dynamics 365 on-premises deployment to Microsoft Dynamics 365, running private Dev/Test deployments in Microsoft Azure.
Dual Use Rights convey Microsoft Dynamics 365 (On-premises) server license access rights to Microsoft Dynamics 365 SLs. Microsoft Dynamics 365 CALs (On-premises) have no reciprocal rights to access functionality provided exclusively to Microsoft Dynamics 365 SLs, nor do Dual Use Rights imply equivalent capabilities between Microsoft Dynamics CALs and Microsoft Dynamics Microsoft Dynamics 365 SLs.
Users or devices licensed with Dynamics 365 User Subscription Licenses (User SLs) have use rights equivalent to a CAL for the purpose of accessing on-premises functionality. With Microsoft Dynamics 365 the Dynamics 365 server license (On-premises) is included with the SLs. Licenses for all supporting servers (e.g., Windows Server and CAL(s)) must be obtained separately.
Dual Use Rights are conveyed through Microsoft Dynamics CRM 2016 and later server licenses, so Dual Use Rights may only be exercised with servers licensed with Microsoft Dynamics CRM 2016 or later. However, customers may use downgrade rights to deploy a qualifying server license with an earlier version of Microsoft Dynamics CRM server and use Dual Use rights to access it with Microsoft Dynamics 365 User SLs.
Dual Use Rights included with Dynamics 365 SLs are non-perpetual and will expire when the cloud subscription expires.
Microsoft Dynamics 365 (On-premises) is licensed through the Microsoft Volume Licensing. In Volume Licensing, Microsoft Dynamics 365 (On-premises) is available through:
• Enterprise Agreement
• Enterprise Agreement Subscription
• Service and Cloud Enrollment
• Enrollment for Education Solutions (under the Campus and School Agreement)
• School Enrollment
• Microsoft Products and Services Agreement (MPSA)
• Open Value
• Open Value Subscription
• Select Plus
• ISV Royalty
• Services Provider License Agreement (SPLA)
To find the right program for your organization, you’ll first need to determine the type and size of your organization, the software that you want to license, and how you will use it. Learn more about how Volume Licensing works.
Participating in a Volume Licensing program typically involves signing an agreement and/or enrollment, meeting a minimum purchase requirement, and ordering licenses through a Microsoft Reseller. Visit the Microsoft Volume Licensing website to learn more about how to buy through Volume Licensing, find a reseller partner, and more.
Microsoft Dynamics 365 (On-premises) License Types
Dynamics 365 simplifies licensing of business applications. The primary licensing is by named user subscription. The Dynamics 365 user subscriptions classify users into two types, “full users” and “additional users”.
Full users are the users whose work requires use of the feature rich business applications functionality. Examples of full users are sales people, customer service representatives, finance employees, controllers and supply chain managers. These users have also been referred to in the past as Pro users or Power Users. In the Dynamics 365 license model (On-premises), full users are licensed with a Dynamics 365 application license (On-premises). There is no Plan license for Dynamics 365 (On-premises)
Additional users often represent a significant percentage of users in an organization and may consume data or reports from line of business systems, complete light tasks like time or expense entry and HR record updates or be heavier users of the system, but not require full user capabilities. These additional users are licensed with Dynamics 365 for Team Members (On-premises) license
There is also device licensing available.
Dynamics 365 for Team Members (On-premises)
The Dynamics 365 for Team Members (On-premises) license is designed for users who are not tied to a particular function, but who require basic Dynamics 365 functionality (On-premises). The Microsoft Dynamics 365 for Team Members user CALs include full read access as well as some write access for select light tasks. This license includes read-only access for all Dynamics 365 (On-premises) data as defined in this licensing guide. Unlike the Dynamics 365 online equivalent, this does not include read access to Microsoft Dynamics 365 for Operations on-premises or any other on-premises software.
Team Member use rights for Microsoft Dynamics 365 (On-premises)
The Microsoft Dynamics 365 for Team Members user CAL grants a user the following Microsoft Dynamics 365 rights for their own use and not for, or on behalf of, other individuals:
(i) To record any type of time
(ii) To record any type of expenses
(iii) Manage personal information
(iv) Manage direct employee activities in Human Resources
(v) Create requisitions
(vi) Create or edit the items related to the following capabilities: quality control, service orders and departmental budgets
(vii) Approval of time, expense, invoices
Microsoft Dynamics 365 for Team Members (On-premises) and higher provide the right to use custom entities. Custom entities may be based on entities included in Dynamics 365 (On-premises) or created by a customer or partner. Rights to create or replicate new custom entities are not included with Dynamics 356 for Team Members (On-premises). If the custom entity is based on or replicates the functionality of entities included in Microsoft Dynamics 365 , or if the entity links to entities included in Microsoft Dynamics 365, then users accessing the custom entity must also be licensed to access the included or replicated entity. For example, users creating an entity that replicates the cases entity for a ticketing system would still require the user to be licensed for cases. In other words, customizations may only be performed against entities users are licensed to access.
Dynamics 365 (On-premises) Applications
Application subscriptions are named user subscriptions where a user is licensed only for one individual application. A user needing access to multiple applications would need to pay for multiple applications. Dynamics 365 has the following Applications:
• Dynamics 365 for Sales (On-premises)
• Dynamics 365 for Customer Service (On-premises)
• Dynamics 365 for Field Service (On-premises)
Microsoft Dynamics 365 for Sales (On-premises)
For your sales team, Microsoft Dynamics 365 for Sales (On-premises) provides licensed users with access to core sales capabilities such as:
(i) Lead and opportunity management
(ii) Product management
(iii) Price list management
(iv) Order management
(v) Sales group management functionality
Each Dynamics 365 for Sales (On-premises) CAL with active Software Assurance also receives rights to Unified Service Desk. Additionally, this license includes rights to configure and administer the Dynamics 365 for Sales (On-premises) application.
Microsoft Dynamics 365 for Customer Service (On-premises)
Microsoft Dynamics 365 for Customer Service (On-premises) is the recommended choice for your customer support teams. It provides licensed users with access to core customer service capabilities including:
(i) Case management
(ii) Interactive Service Hub
(iii) SLAs and Entitlements
(iv) Other Service group management functionality.
Each Dynamics 365 for Customer Service (On-premises) CAL with active Software Assurance also receives rights to Unified Service Desk. Additionally, this license includes rights to configure and administer the Dynamics 365 for Customer Service (On-premises) application.
Microsoft Dynamics 365 for Field Service (On-premises) Functionality
Microsoft Dynamics 365 for Field Service (On-premises) is not available as a standalone on-premises Client Access License. Rather, access to on-premises functionality is available only through Dual Use Rights leveraging the Dynamics 365 for Field Service User Subscription License.
Microsoft Dynamics 365 for Field Service provides licensed users with access to (online and on-premises):
(i) Field service capabilities including work order management
(iv) Routing capabilities
(v) Repairs and returns management
(vi) Inventory management
Each Dynamics 365 for Field Service User Online User SL also includes additional online-only rights. Additionally, this license includes rights to configure and administer the Dynamics 365 for Field Service application.
This User SL also includes the Field Service Mobile Application, a Microsoft application that is specifically designed for Dynamics 365 for Field Service, distinct from the Dynamics CRM Mobile Client Application. This application is technically limited to only Field Service entities and a maximum of 10 custom entities.
For a detailed view of the use rights associated with Dynamics 365 for Field Service as applicable to an On-premises deployment please refer to Appendix A. Only functionality available on-premises is listed in this guide, for the full online User license use rights please refer to the Microsoft Dynamics 365 Licensing Guide.
Note: A user or device licensed with any Microsoft Dynamics 365 (On-premises) CAL can access the solution functionality using Microsoft Dynamics 365 (On-premises) client applications such as Microsoft Dynamics 365 for Outlook, Microsoft Dynamics 365 web application, Microsoft Dynamics 365 Mobile Client Application, and Microsoft Dynamics 365 for iPad & Windows.
Access to Microsoft Dynamics 365 (On-premises) through any access method is included with each User CAL, with no additional license fees.
Microsoft Dynamics 365 (On-premises) server allows for up to two separate devices or users to access instances of the server software only to administer those instances, which do not consume CALs.
CAL Comparison Dynamics 365 for Dynamics 365 (On-premises)
The following provides a high-level summary of the use rights associated with each of the license types.
Stepping Up to a Higher-Level CAL
Microsoft Dynamics 365 enables migration from a lower level CAL to a higher-level CAL using Step-Up licenses. Step-Up licenses require maintaining Software Assurance. Step-up License makes it easier for you to move from a lower-level edition to a higher-level edition without incurring the full cost of licensing two separate editions of the software. For more information on Step-Up Licenses, refer to the licensing brief.
Additional Services and Software
Microsoft offers additional services and software that work in tandem with Microsoft Dynamics 365, including Unified Service Desk.
Unified Service Desk
Unified Service Desk for Microsoft Dynamics 365 (USD) consolidates numerous communication channels (such as phone, chat, email, and social media) and relevant services into a single interface to enable greater efficiency and productivity.
USD is not available as a standalone license. USD software is installed and run locally on the user’s device. The use rights expire upon expiration of the qualifying User SL subscription term or Software Assurance subscription. Only licensed users may use the software. USD installation rights are included with Dynamics 365 for Sales (On-premises) and Dynamics 365 for Customer Service (On-premises) CALs.
Other Product Licenses
Please refer to the Microsoft Dynamics 365 implementation guide for documentation on technical requirements for running Microsoft Dynamics 365 (On-premises). Licenses for Microsoft Dynamics 365 do not include licenses for other products that may be required for your installation; product licensing rights for these must be established separately.
Microsoft Dynamics 365 Reporting Extensions (On-premises) are data processing extensions that can be installed on the Microsoft SQL Server Reporting Services. Microsoft Dynamics CRM Reporting Extensions are provided to licensed Microsoft Dynamics 365 customers (On-premises) and does not require additional Microsoft Dynamics 365 (On-premises) licensing on the SQL Server Reporting Services Server.
New Customers and partners not already enrolled in a Microsoft Volume Licensing program can access Microsoft Dynamics 365 (On-premises) trial software.
Trials for all editions of Microsoft Dynamics 365 (On-premises) and Microsoft Dynamics CRM 2016 are available at the Microsoft Download Center (CRM 2016). Currently, there is only a Dynamics CRM 2016 trial available, with an option to upgrade to Dynamics 365 (On-premises) via the December Update for Dynamics 365 (On-premises).
Dynamics CRM 2016 Trial with the December Update for Dynamics 365 (On-premises):
• Contains license keys for an unlimited number of Microsoft Dynamics CRM Server 2016 Users for whom the December Update for Dynamics 365 may be applied
• Is time limited to 90 days
• May be converted to a full version by applying a commercial product key in Microsoft Dynamics 365 Deployment Manager
In taking advantage of the Dynamics 365 trial (On-premises), please note:
• Trial License Keys are posted on the Trial download site.
• IMPORTANT: Admin users will be warned of impending trial expiration, so be sure that you decide well before day 90 whether to convert to a commercial license. The 90-day trial limit cannot be extended.
• If customers or partners need more than 90 Days for their evaluation, they may purchase the appropriate number of Dynamics 365 CALs (On-premises)
The Trial software may be converted to Volume Licensing, BRL, MSDN, TechNet, MPN or ISV licenses in accordance with the following table.
Software Assurance includes a core set of benefits to help improve workforce productivity, streamline software deployment, and reduce costs. A distinctive set of benefits, such as new software versions, planning services, 24×7 phone and Web support, training, and more—all designed to help you get the most from your organization’s Volume Licensing purchase.
When you purchase Microsoft Dynamics 365 (On-premises) through the Open, Open Value, Open Value Subscription, Enterprise Agreement, Enterprise Subscription Agreement or Enrolment for Education Solutions, Software Assurance is included with your licenses.
The customer’s specific Software Assurance benefits vary according to the Volume Licensing program. Refer to the resources and tools below to learn more about the Software Assurance benefits available to your organization.
To learn more about the Software Assurance benefits for Microsoft Dynamics 365 customers (On-premises), visit https://www.microsoft.com/en-us/licensing/licensing-programs/software-assurance-default.aspx to view an interactive benefit chart detailing the benefits of the Software Assurance benefits for Microsoft Dynamics 365 or https://www.microsoft.com/en-us/licensing/licensing-programs/software-assurance-default.aspx#tab=3 to check customers benefits post-purchase.
For details on existing customer migration options please see the Dynamics 365 Transition Guide document.
You can use the Volume Licensing Service Center (VLSC) to download licensed products, access product keys, and manage your Volume Licensing agreements and license acquisition activity—all in one online location. You can purchase physical media from your Microsoft reseller.
Customers who have licensed Dynamics 365 (Online) who do not have access to VLSC, but would like to leverage Dual Use Rights for a hybrid deployment may obtain the software through CustomerSource or PartnerSource.
License Keys and Product Activation
Microsoft Dynamics CRM 2016 with the December Update for Dynamics 365 media obtained under Volume Licensing programs include license keys embedded on the media (Media is ‘Pre-Keyed*’). The license keys do not need to be entered upon installation.
The License Key may be located by searching the installation files contained on the media for the \server\amd64\license.txt file.
On-premises Upgrades, Downgrades and Migration
Technical Upgrade Path
For details on the upgrade On-premises server to Dynamics 365 Server, please review the steps outlined here.
License Upgrade Path
Customers who are current on their Software Assurance Plan as of December 1, 2016 are entitled to upgrade the licenses from Microsoft Dynamics CRM 2015 to Microsoft Dynamics CRM 2016 as shown below upon renewal.
Downgrade Paths for Microsoft Dynamics CRM Versions
For details on downgrade paths between previous Microsoft Dynamics CRM Versions, please consult the Microsoft Dynamics CRM Licensing and Pricing Guide.
Transitioning from On-premises to Cloud Deployment
If the customer has Microsoft Dynamics 365 CALs (On-premises) covered by active Software Assurance (SA), they can add access to Microsoft Dynamics 365 (Online) two different ways: via cloud Add-on or From SA User Subscription Licenses. Both options are designed to recognize customer investments in on-premises licenses by providing a standard discount from the full Dynamics 365 (online) price while obtaining these non-perpetual rights to the online service for the agreement term. Both options include Dual Use Rights for hybrid deployments.
The license rights for a Add-on or From SA User SL are identical to those of equivalent Full User Subscription License (Full USL).
Device CALs purchased as part of an Enterprise Agreement or Enrollment qualify for these User Add-on or From SA options on a 1:1 basis: One Device CAL qualifies for one From SA or Add-on User SL.
From SA option is available for purchase through the Microsoft Volume Licensing Enterprise Agreement, Enterprise Subscription Agreement and Enrollment for Education Solutions (under a Campus and School Agreement) programs.
Add-on option is available for purchase through the Microsoft Volume Licensing Enterprise Agreement, Enterprise Subscription Agreement, Microsoft Products and Services Agreement (MPSA) and Enrollment for Education Solutions (under a Campus and School Agreement) programs.
Dynamics 365 Cloud Add-on
Dynamic 365 Add-ons to move to cloud are ideal for customers who are not ready to move entirely to the cloud, or who are in the middle of their agreement. The cloud Add-on gives credit for your ongoing SA payments.
The cloud Add-on model includes two parallel commitments:
- A new or existing Software Assurance commitment that the customer will continue to maintain and renew
- An additional cloud Add-on license commitment that provides rights to the Dynamics 365 Online service
The Add-on User SL must be used for the same user of the User CAL. The User SL cannot be subsequently transferred to another user unless the corresponding CAL is also transferred to the new user.
Microsoft Dynamics 365 From SA
Dynamics 365 From SA offers are ideal for customers who are ready and able to entirely drop SA and move licensing to the cloud.
These licenses are designed for current Microsoft customers who want to transition to the cloud and are licensed to on-premises solutions. From SA USLs recognize the on-premises investment and thus are offered at a discounted price for customers. To purchase From SA USLs, customers must have fully paid qualifying licenses, namely the corresponding on-premises licenses from which the customer is transitioning or more than 3 years of a qualifying software subscription license. The qualifying licenses are detailed in the Product Terms.
From SA is available at anniversary (only for EAS) or renewal.
For more informations download the document:
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