Upcoming Dynamics Pricing Changes
Service Plan Increases
Subscription Licensing Increase
Microsoft has also announced a further 10% increase to Dynamics on-premises subscription base pricing effective October 2026.
This continues a broader trend of increasing on-premises ERP licensing costs over recent years.
Example Cost Changes
- Business Central On-Premises licensing has increased from approximately $1,200 USD to approximately $1,980 USD.
- Dynamics GP subscription licensing has increased to approximately $66 USD per user per month.
The Real Cost Is More Than Licensing
While annual license renewals are easy to track, many organizations underestimate the ongoing costs required to maintain an on-premises ERP environment.
Infrastructure Costs
Servers, storage, backups, networking equipment, and hardware refresh cycles all contribute to long-term ERP ownership costs.
IT Administration
Internal teams and external consultants are often required to maintain environments, troubleshoot issues, and support upgrades.
Security & Compliance
Maintaining secure, compliant infrastructure becomes increasingly complex as cybersecurity requirements evolve.
Missed Innovation
Organizations may miss access to new Microsoft technologies, automation tools, AI capabilities, and productivity enhancements.
Why Microsoft Continues to Invest in Cloud ERP
Microsoft’s long-term product strategy focuses on delivering continuous innovation through cloud-based platforms.
Continuous Innovation
Receive new features and improvements without major upgrade projects.
AI & Copilot
Access Microsoft Copilot and AI-powered productivity tools.
Security
Benefit from enterprise-grade security managed by Microsoft.
Anywhere Access
Enable secure access from any location or device.
Microsoft 365 Integration
Connect finance, operations, and productivity tools seamlessly.
Scalability
Expand capacity without investing in additional infrastructure.
A Smarter Migration Path May Already Be Available
- Leverage your current Enhancement Plan investment
- Continue using your existing environment during migration
- Reduce migration risk
- Access discounted cloud licensing
- Migrate at a pace that suits your organization
Potential Savings Opportunity
Comparing Long-Term ERP Ownership Costs
Five Questions Every Dynamics Customer Should Be Asking
If these questions are difficult to answer, it may be time for a strategic ERP review.
Question 1:
How much are we spending annually on Enhancement Plans and licensing renewals?
Question 2:
What is the true cost of maintaining our infrastructure each year?
Question 3:
When is our next major upgrade expected?
Question 4:
Do we need access to AI, Copilot, and modern Microsoft cloud capabilities?
Question 5:
Would moving to the cloud reduce our total cost of ownership over the next five years?
Your Regional Dynamics Partner
For over two decades, Davyn has helped organizations across the region maximize the value of their Microsoft ERP investments.
Whether you’re running Dynamics GP, NAV, or Business Central on-premises, our team can help you understand the impact of Microsoft’s latest pricing changes and evaluate the most cost-effective path forward.
ERP Cost Assessments
Understand the financial impact of licensing, infrastructure, and support costs.
Business Central Migrations
Plan and execute a structured transition to Business Central cloud.
Bridge to the Cloud Guidance
Determine eligibility and maximize available Microsoft incentives.
Licensing Optimization
Ensure you’re using the most cost-effective licensing model.
Cloud Readiness Planning
Build a practical roadmap for modernization and future growth.
Before Your Next Renewal, Know Your Options
Official Microsoft Resources
Dynamics pricing updates infographic and announcements can be referenced alongside Microsoft’s official resources below:
Microsoft 2026 Dynamics & Microsoft 365 Pricing Updates
Additional information regarding Microsoft Bridge to the Cloud promotions:
Microsoft Bridge to the Cloud 3 Promo