Dynamics GP 2013, the next major release of Dynamics GP, is set for release in December. Many exciting and long-awaited features will be in this version, including a browser-based interface and the ability to select a printer at the time of printing. Along with product changes, Microsoft also is changing the pricing model for Dynamics GP. This article will offer details about this new pricing model.
Over the years, Dynamics GP has had multiple pricing models. Many years ago, Dynamics GP was priced using a modular approach. In this model, you selected each module you wanted to license, and customers selected either Professional or Standard editions; the primary difference was in which modules could be added.
This model was replaced by Business Ready Licensing in 2006. This model provided a combination of a bundled approach and à la carte modules. For those customers who purchased Dynamics GP since the fall of 2006, and those who transitioned to it, you have enjoyed multiple modules for one price per user.
Microsoft is now releasing a pricing model called Perpetual Licensing, which fits the new architecture of Dynamics GP 2013 more closely. It also provides some long-requested types of pricing. Lastly, it simplifies the pricing dramatically.
The New Pricing
First, the model is broken into what are called packs. There is a required starter pack and an extended pack, in addition to a customization pack. There also are a few à la carte modules. Here is a breakdown of the packs and what they include:
|Starter Pack||The required pack includes three licenses and these areas of functionality:
|Extended Pack||Functionality included:
|Customization Pack||Functionality included:
|Extended HR and Payroll||
|SmartList Builder Pack||Includes the Builder products: SmartList, Excel Reports, Drill Down and Navigation List|
Another big change to licensing is for the users. There are now two types of user licenses: full user and limited user. A full user provides full read and write capabilities to all functionality no matter how the user accesses it. A limited user provides read and limited write capabilities. For example, a user logging into the traditional Windows client would only have read access, but a limited user could have write access when using modules such as time and expense entry.
Transitioning to Perpetual Licensing for Existing Customers
You might have found this information interesting but asked yourself, “What’s this have to do with my company?” To upgrade to Dynamics GP 2013, you will be required to be on the Perpetual Pricing model.
There are some key benefits for existing customers of Dynamics GP:
Licenses Acquired Prior to October 1, 2012
Dynamics GP 2013 customers who purchased Dynamics GP prior to October 1, 2012 will receive one full user license for each concurrent user license already owned; customers with one or two concurrent user licenses will get three full user licenses because the Starter Pack includes three users.
For each named light user or employee self-service user license, you will get one concurrent limited user license. Thus, light users become limited users. In addition, the users get more functionality than they have today.
For functionality, you will get whatever packs include the functionality you have today. Here are some examples:
|What You Have Today||What You Get Under Perpetual Licensing|
|General Ledger, Payables Management, Bank Reconciliation and Three Users on the Standard/Professional Model||Starter Pack|
|Business Essentials, Payroll, HR and 10 Users||Starter Pack, Extended Pack, 7 Additional Full Users|
|Advanced Management, Payroll, HR, PTO Manager, SmartList Builder, 2 Users||Starter Pack, Extended HR/P Pack, SmartList Builder Pack|
|Business Essentials, Integration Suite, 5 Users||Starter Pack, Customization Pack, Additional 2 Full Users|
|Advanced Management, Payroll, PTO Manager, Integration Suite, Forecaster Users (10), Manufacturing Suite, 20 users||Starter Pack, Extended Pack, Customization Pack, Extended HR/P Pack, Additional 13 Full Users|
This license transition is called License Migration Transition Upgrade.
Licenses Acquired After October 1, 2012 but Before December 1, 2012
Customers who purchase Dynamics GP after October 1, 2012 will get an investment credit towards the price of the software using the Perpetual Pricing model. So, if the retail value of Dynamics GP when purchased is $25,000 and the retail value is $30,000 under the Perpetual Pricing model, the customer will pay the $5,000 difference when upgrading to Dynamics GP 2013.
What You Can Do Today
If you purchase Dynamics GP prior to October 1, you can purchase additional modules and will get the appropriate Perpetual License packs for no additional charge when you upgrade. For example, if you purchase PTO Manager today, you get the entire Extended HR/P Pack under the Perpetual Pricing model. The key point: You will get all packs you need at no additional cost based on what you own today.
Your action item is to consider the software you have today and your plans for the future. Determine if there is functionality in the new perpetual pricing model that would be useful. If there is, purchase it today so you automatically get the packs you need in December.
Please contact your BKD representative for more details and to discuss how Perpetual Pricing applies to you.