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Dynamics NAV 2016 Licensing Guide

Dynamics NAV 2016 Licensing Requirements

Microsoft Dynamics NAV 2016 licensing is designed to help small and midsize businesses jumpstart their financial insights and distribution management and then easily extend into all functional areas.
The two license models available for Microsoft Dynamics NAV 2016 provide customers with a simplified, yet flexible, purchase experience. The entire solution can be licensed with as little as one and as much as four core components: The Starter Pack, the Extended Pack, the Full User and the Limited User. Additional configuration components are also available.
With Microsoft Dynamics NAV 2016, you must license:
➤ The solution functionality; and
➤ Access to the solution functionality by your users

Licensing the Solution Functionality

Microsoft Dynamics NAV 2016 functionality is delivered through the Starter Pack and the Extended Pack.
The required Starter Pack gives you core financials and distribution functionality to help you:
➤ Gain control and insights over your finances
➤ Manage sales items and materials in a distribution environment
➤ Provide licensed users a singular view of the business from virtually anywhere through a variety of devices
The optional and additive Extended Pack adds functionality that integrates core financials and distribution management capabilities with industry specific functionality extensions such as:
➤ Manufacturing to support and control the manufacturing environment
➤ Warehousing to manage the warehouse to support operations
➤ Professional Services to manage the billables generated by consultants
➤ Basic Customer Relationship Management (CRM) to manage customer and supplier relationships and offer the highest quality of service and support
Note: Licenses for additional software required to run the solution, such as Microsoft Windows Server, Microsoft SQL Server, and Microsoft SharePoint Server, are not included with the Starter Pack, the Extended Pack, or any of the access licenses. You need to license any additional software according to their applicable license terms. See Licenses for Additional Software for more information.

Licensing User Access to the Solution Functionality

Users accessing the solution must be defined according to the type of access they need: Full or Limited.

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Full Users receive unrestricted direct or indirect access to all of the functionality in the licensed server software including setting-up, administering, and managing all parameters or functional processes across the ERP Solution. Full Users require more write capabilities that those available to Limited Users.
Limited Users get restricted access to the ERP Solution to complete only the following tasks:
➤ “Read” access to any data contained in the ERP solution; and
➤ “Write” access to a maximum of 3 table objects with the following exceptions:
➤ Limited users are not authorized to write directly or indirectly to the following tables: General Ledger Entry (table number 17), Permission Set (table number 2000000004), Permission (table number 2000000005) or Access Control (table number 2000000053); and
➤ Tables described in Appendix A: Limited User Included Tables do not count towards the 3 table objects.
Writing the transactions of a Limited User to a temporary table then having a Full User (or a system process) post those transactions to table 17 is an example of indirect write access to table 17, which is not permitted. Transations created by a Limited User are not considered indirect write access if (i) they are needed by a Full User as in an input to perform their job function and (ii) transactions are processed individually (not in a batch).

The Limited User Included Tables should allow you to perform the following tasks:
➤ Create a Customer with relevant contact details, based on a template or from scratch.
➤ Create an Opportunity for an existing Campaign, and relate it to Sales Quotes or Orders.
➤ Quotes:
o Create a Sales Quote for an existing or a new Customer.
o Send a Sales Quote by email, send it for approval, or convert it to a Sales Order.
➤ Orders:
o Create a Sales Order for an existing or a new Customer.
o Send a Sales Order for approval.

➤ Create a Vendor with relevant contact details, based on a template or from scratch.
➤ Create a Purchase Order for an existing or a new Vendor.
➤ Send a Purchase Order for approval.
Other Tasks
➤ Fill in an existing timesheet
➤ Perform Document Capture – Expense reporting by scanning an invoice to create an incoming document

Role Centers
➤ Use the charts on two role centers: Order Processor (for Sales scenarios) and Purchasing Agent (for Purchase scenarios).
However, if your specific deployment requires more than 3 tables not part of the Included range in order to fulfill these tasks, a Full User will be required.
Any access beyond these limitations requires Full User access.
When assigning security rights to users, the system administrator will designate them as Full Users or Limited Users.

Access License Types
Microsoft Dynamics NAV 2016 offers two types of access licenses : Concurrent Client Access Licenses (CALs), only available under the Perpetual Licensing model, and User Subscription Access Licenses (SALs), only available under the Subscription Licensing model.
Concurrent CALs are based on the number of users accessing the solution simultaneously. While this access license type allows an unlimited number of individuals to be defined in the system, the number of individuals accessing the solution at any given time may not exceed the total licensed number of Concurrent CALs. Concurrent CALs are assigned temporarily to an individual user for the duration of their active session. Once that individual ends the active session, the CAL then becomes available for use by another individual. Concurrent CALs license individual users to access the application only while they are consuming one of the Concurrent CALs (making it unavailable for other individuals to access the application) .
User SALs, only available in the Subscription Licensing model, grant individual users the right to access the application irrespective of the number of users simultaneously accessing the application. Unlike Concurrent CALs, a unique User SAL must be assigned to each individual user that will access the solution functionality. SALs are specific to an individual and cannot be shared.
Refer to the Perpetual Licensing and Subscription Licensing Models section later in this document for additional details.

Access by External Users

Your customers are external users. The Starter Pack includes the rights for an unlimited number of external users to access the ERP solution without the need for individual Access Licenses as long as following two restrictions are met:
➤ External users cannot use any clients provided by the Microsoft Dynamics NAV Application Programming Interface (API), such as the Microsoft Dynamics NAV 2016 Windows client, the Microsoft Dynamics NAV 2016 Web client, the Microsoft Dynamics NAV for Windows, the Microsoft Dynamics NAV for iPad or iPhone app, or the Microsoft Dynamics NAV for Android Tablet or Phone app.
➤ External user licenses cannot be used by you to provide business process outsourcing services to your customers.
Your system administrator designates external users in the user table by assigning such users an External User designation.

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Multiplexing is the use of hardware or software (including manual procedures) to reduce the number of users that directly access the Microsoft Dynamics ERP solution by pooling connections. Multiplexing does not reduce the number of Access Licenses required. Any user that directly or indirectly reads from or writes to the ERP solution’s database in real-time mode or via batch whether connecting individually or through a data consolidation process must be licensed with the appropriate access license type in compliance with the Software License Terms.
Note: Licensed users may manually rekey information (coming from non-licensed users) into the Microsoft Dynamics ERP solution. This scenario is not considered to be multiplexing.

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Customizing the ERP Solution

A suite of tools is available to help partners customize your ERP Solution. Your partner may license application objects as needed to modify the solution to your specific requirements. If you are a larger customer with your own IT department, please ask your partner about Application Builder and Solution Developer, two functionality modules designed to give you the tools to modify your solution on your own.

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Licensing Models

Microsoft Dynamics NAV 2016 is licensed through one of two licensing models: Perpetual Licensing and Subscription Licensing.
With Perpetual Licensing, you license the software with permanent usage rights. So, you can use the licensed version of the software for as long as you choose. Perpetual Licensing might be for you if you prefer an upfront investment or if you want to manage the solution internally, and will run the software on your premises (or, subject to license mobility rights, have it hosted by a third party Infrastructure as a Service [IaaS] provider acting as your agent).
With Subscription Licensing, you license non-perpetual rights to use the software, meaning you can use the software only during the term of the agreement secured by periodic payments. This model lowers your initial licensing costs and provides you with the flexibility to increase or decrease subscription license counts from one subscription term to the next. You can use Subscription Licensing when you want to have the ERP solution hosted and managed as Software as a Service (SaaS) by your partner or any third party. Alternatively, the software may be deployed on your premises, provided that your Microsoft Dynamics NAV partner provides day-to-day management services and maintains sole control over the solution.
There are significant licensing differences between Perpetual Licensing and Subscription Licensing, as illustrated below.

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Perpetual Licensing

With Perpetual Licensing, you license the desired solution functionality and access to that functionality is secured by licensing access licenses.

Licensing the Solution Functionality under Perpetual Licensing
It is now easy for small and midsize businesses to quickly and affordably get started with Perpetual Licensing. The Starter Pack gives customers all application setup utilities, provides usage rights to core Financials and Distribution functionalities, plus includes the first three Full Concurrent CALs. You need only one Starter Pack license per ERP Solution deployment—even if your installation is deployed over multiple servers as long as you own those servers and that they are in the same physical location. For many organizations, the Starter Pack is the only Microsoft Dynamics license component they will need.

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If you want to deploy some of the advanced functionality delivered by Microsoft Dynamics NAV 2016, you can license the optional and additive Extended Pack.
When you license the Extended Pack, the first three Full Concurrent CALs included in the prerequisite Starter Pack also get access to all of the advanced functionality.

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If you have more than three Full Users that need to access the solution functionality at the same time, you must acquire additional Full Concurrent CALs beyond the first three included with the Starter Pack.

Deploying Your Self-Managed Solution in an IaaS Environment
If you have an active enhancement plan, you have the licensing flexibility you need to manage your own solution, but deploy it in an Infrastructure as a Service (IaaS) environment, such a Microsoft Azure. Through the License Mobility rights included with your enhancement plan, you may reassign your ERP solution licenses to:
➤ Any servers running physical operating system environments (OSEs) or virtual OSEs dedicated to you and located within the same Server Farm as often as needed, or
➤ From one Server Farm to another, but not on a short-term basis (i.e., not within 90 days of the last assignment).
Microsoft Dynamics NAV 2015 may be deployed in a multitenant environment where, by definition, the OSE is not dedicated to you. In such case, you are required to install your license key in the tenant database. Please note that this exception to the License Mobility requirement that the OSE be dedicated to you only applies to the Microsoft Dynamics NAV software and not to any of the other Microsoft components required for your ERP solution to run.
Also, please note that SQL Server Runtime Use licenses, offered in Order Central, do not qualify for License Mobility rights. So, if you are deploying your ERP solution in an IaaS environment, you will be required to license SQL through other licensing programs.
“Server Farm” means a single data center or two data centers each physically located:
➤ In a time zone that is within four hours of the local time zone of the other (Coordinated Universal Time (UTC) and not DST), and/or
➤ Within the European Union (EU) and/or European Free Trade Association (EFTA).

Licensing User Access under Perpetual Licensing

Under Perpetual Licensing, you license Full access to the solution with Full Concurrent CALs and Limited access to the solution with Limited Concurrent CALs. When assigning security rights to users, the system administrator will designate each user as a full user or a limited user.
Microsoft Dynamics NAV 2016 contains two concurrency “counters”— one for Full Users and another one for Limited Users—to help you make sure that the number of users concurrently logged into the solution does not exceed your licensed number of Full and Limited Concurrent CALs. When a user attempts to log in, they will automatically be routed through the appropriate counter based on their assigned user type. If the maximum number of licensed concurrent users has already been reached, the user will not be able to log in until someone logs out.
Note: When a Full User accesses a session using web services, the session is “locked” to that user for a minimum of two hours, after which time, if the user has logged out, the session becomes available to other users. For Limited Users, the session is tied to that user for a minimum of 15 minutes. The user may release the locked session at any time by logging into the solution through any of the Microsoft Dynamics NAV clients and logging out. At that time, the application will release all sessions tied to that user.
Please note that users accessing the application indirectly, such as through a third party application, require to be licensed with and consume the appropriate CAL type, even if those users are not directly logging into the ERP solution. The responsibility for ensuring proper concurrency usage falls to the third party application provider.

Subscription Licensing

With Subscription Licensing, customers subscribe to the rights to use Microsoft software and services instead of owning them.
Solution Functionality and User Access are licensed through three Subscriber Access Licenses (SALs):
➤ Standard User SAL is a required SAL that entitles the licensed user to perform Full User tasks across the ERP Solution using all of the functionality included in the Starter Pack. Every Full User requires a Standard User SAL. The Standard User SAL grants all licensed users the right to use the functionality contained in the Starter Pack.
➤ Extended Use Additive SAL is an optional functionality license type, additive to the Standard SAL, which expands the rights of all licensed users to perform tasks using all of the functionality in the Extended Pack. The Extended Use Additive SAL grants all licensed users the right to use the functionality contained in the Extended Pack as long as every Full User licensed with a Standard User SAL is also licensed with an Extended Use Additive SAL.
➤ Limited User SAL is an optional access license type that entitles the licensed user to perform Limited User tasks across the ERP Solution using the same functionality footprint available to the Full Users. Every Limited User requires a Limited User SAL.

Choosing the Appropriate SAL Type
To choose the appropriate SAL type, determine the functionality you require for the ERP solution. If you require only the functionality included in the Starter Pack, then license Standard User SALs (or a combination of Standard User SALs and Limited Use SALs). If you also require the functionality of the Extended Pack, then license Extended Use Additive SALs for all Standard User SALs.
Note: You must license Extended Use Additive SALs in the same quantity as Standard User SALs.

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Note: Microsoft Dynamics NAV 2016 includes at no charge, one SAL for an External Accounting User using the client software only for the sole purpose of providing supplemental professional accounting or bookkeeping services related to the auditing process, and one SAL for a System Administor User for an employee of your Microsoft Dynamics partner to manage your application and provide support.

Subscription Licensing Term
Microsoft Dynamics NAV 2016 is licensed on a monthly basis, giving you the flexibility to adapt your SAL counts from one month to the next as required by your changing business trends.
When adding SALs, the cost of the license will be pro-rated based upon the time remaining in the current month’s term (based on a standardized 30 day month). So, for example, if there are 10 days left until the end of the term, you will pay the monthly charge divided by 30 times 10. When removing SALs, the reduced SAL count takes effect at the start of the subsequent monthly term.
The only commitment for Subscription Licensing is a full month term so, except for having to let your subscription run its course until the end of the current term, you can cancel at any time without any penalties.

Enhancement Plan Benefits

Your Microsoft Dynamics solution puts you at the top of your game—and your Microsoft Dynamics service plan keeps you there. It’s what you need to stay compliant, stay competitive, and get the greatest value from your solution over time. Your plan, along with the services your Microsoft Dynamics partner provides, will give you the winning combination for success!
➤ License Mobility Rights: Deployment flexibility for the Perpetual Licensing model that enables you to manage your own solution yet host it in an Infrastructure as a Service (IaaS) environment, such as Microsoft Azure.
➤ Optimizing ongoing value: Access to new version upgrades, features, and innovative capabilities help customers remain compliant and competitive—and stay on the leading edge of technology.
➤ Protecting your investment: Ready access to service packs and hotfixes keep customer’s solution up-to-date and running at peak performance levels. Microsoft ensures support throughout the solution’s life cycle, and the Microsoft product roadmap helps customers plan for the future.
➤ Increasing business productivity: Self-support tools and training through CustomerSource empower customers to increase productivity and manage complex business challenges.
➤ Offering powerful flexibility: Customers decide the level of help they need, with a rich self-help knowledge base, tremendous training resources, an online community of users, and 1:1 help from Microsoft experts.
If you license your solution under the Perpetual Licensing model, additional Customer Support offerings may be available in your region. For information on the availability of the Advantage Plus Plan, or for more detailed information on the benefits, visit http://www.microsoft.com/dynamics/customer/en-us/service-plans.aspx.

Licenses for Additional Software

Licenses for additional software that may be required for the solution—such as Microsoft Windows Server, Microsoft SQL Server, and Microsoft SharePoint Server—and their corresponding Access Licenses are not included with the Microsoft Dynamics NAV 2016 licenses. You must acquire any necessary licenses for these additional products under the licensing model for the particular product (which may be differen than the model used for Microsoft Dynamics NAV 2016). To learn more or acquire licenses for additional software, find and contact a Microsoft Volume Licensing partner via: http://www.microsoft.com/licensing/how-to-buy/how-to-buy.aspx.

In this example, five individuals are accessing the Microsoft Dynamics ERP solution, which is connecting to a SQL Server database, through three Microsoft Dynamics Concurrent CALs. Windows Server and SQL Server are being licensed through a server/CAL model, so the customer requires the appropriate number of Windows Server and SQL Server licenses and CALs. Because Windows Server and SQL Server CALs are also licensed on a Named User (or device) basis, each individual user (or device) requires a Windows Server and a SQL Server CAL along with the Microsoft Dynamics CAL.

Licenses for other products required for the solution must be acquired separately in accordance with the applicable licensing requirements for these products.

For more informations download the document:

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