Microsoft Dynamics 365 Licenses – What's Changing?
Navigating the evolving landscape of Microsoft licensing for CSP partners and Dynamics 365 administrators
End of "Silent License Misuse"
Starting September 1, 2025, Dynamics 365 users without assigned licenses will start receiving in-app warnings, prompting them to contact their administrator to obtain the appropriate license.
From November 1, 2025, Microsoft will enforce "hard enforcement." Users without assigned licenses will be completely blocked and unable to access the system. This applies to all Dynamics 365 modules, including Finance, Supply Chain Management, Commerce, Project Operations, and Human Resources.
License Enforcement Timeline
September 1, 2025
In-app warnings begin for unlicensed users
November 1, 2025
Hard enforcement blocks access completely
All Modules
Finance, SCM, Commerce, Project Operations, HR
Administrators
Must assign licenses to prevent access issues
Greater Transparency in Microsoft Licenses
Administrators can now use new tools in the Power Platform Admin Center to monitor license assignments precisely. These features make it easier to see which users have Microsoft licenses and which do not, enabling faster action and avoiding potential access issues.
Regular license audits are simpler, making Microsoft licenses management more efficient. Organizations can better control costs and ensure compliance with licensing requirements.
For partners in the Microsoft Cloud Solution Provider program, this adds transparency and cost control. Monthly payment options may appeal to customers seeking flexibility, and as a partner, you can guide them on the best approach to match their needs and budget.
Microsoft Dynamics 365 Licenses – Payment More Flexible
Microsoft now offers more flexibility in annual subscription payments. If you prefer to split payments into monthly installments, you can. However, monthly payments within an annual commitment come with a 5% surcharge.
For partners in the Microsoft Cloud Solution Provider program, this adds transparency and cost control. Monthly payment options may appeal to customers seeking flexibility, and as a partner, you can guide them on the best approach to match their needs and budget.
Business Central Pricing Changes
Essentials
$70 → $80/month
+ 3GB storage
Premium
$100 → $110/month
+ 5GB storage
Effective Date
October 1, 2025
Dynamics 365 Business Central with Extra Storage
Starting October 1, 2025, Dynamics 365 Business Central prices will increase. The Essentials module will cost $80/month (previously $70), and Premium will be $110/month (previously $100). In return, users will get additional data storage: 3 GB and 5 GB respectively, improving data management and storage capabilities.
For partners in the Microsoft Cloud Solution Provider program, this is a chance to help clients optimize costs and tailor Microsoft licenses to their needs. CSP's flexibility allows solutions to match customer requirements while providing the best value.
End of Enterprise Agreement Discounts – Focus on Microsoft Licenses in CSP
Also from November 1, 2025, Microsoft will discontinue volume discounts in Enterprise Agreements (previously 6–12%). It's the perfect moment to review your Microsoft licenses and consider moving to the CSP model.
Switching to the Cloud Solution Provider (CSP) program offers flexibility in managing Microsoft licenses, easy adaptation to customer needs, and cost monitoring. This ensures all Microsoft licenses remain under full control, allowing you to help clients make the most of their packages.
Key CSP Advantage
For Microsoft Cloud Solution Provider partners, this is a big advantage. You can demonstrate to clients that Microsoft licenses are not only secure but also flexible and easy to manage – just how a modern business should operate.
How to Use Microsoft Licenses Daily
Changing licenses during the year doesn't have to be stressful. As a CSP Microsoft partner, you can simply adjust Microsoft licenses to meet your clients' current needs – add new ones, remove unused ones, all flexibly and without downtime.
Tracking Microsoft licenses in Dynamics 365 is also straightforward. Reports in the Power Platform Admin Center clearly show who is using licenses and who isn't, making cost control easy and ensuring compliance.
For Microsoft Cloud Solution Provider partners, this is a big advantage. You can demonstrate to clients that Microsoft licenses are not only secure but also flexible and easy to manage – just how a modern business should operate.
Action Items by Role
CSP Partners
Start client conversations, check license assignments, advise on payment models
CSP Teams
Educate clients on CSP benefits – flexible payments and clear reporting
Dynamics Admins
Audit assignments, review billing models, prepare for enforcement deadlines
All Stakeholders
Review current licensing strategy and consider CSP migration
Priority Focus
Transition from EA to CSP model for better flexibility and control
What This Means in Practice
CSP Microsoft Partners
Start conversations with clients, check Microsoft license assignments, advise on payment models, and help transition from EA to CSP.
Microsoft Cloud Solution Provider Teams
Educate clients on the benefits of Microsoft licenses under CSP – flexible payments, easier management, and clear reporting.
Dynamics Administrators
Audit assignments, review billing models, and prepare for upcoming license enforcement deadlines.
The world of Microsoft licenses is evolving rapidly. For CSP Microsoft partners and the entire Microsoft Cloud Solution Provider program, this is both a challenge and an opportunity – making the role of a trusted advisor more important than ever, helping clients navigate changes smoothly.
Ready to Navigate Microsoft Licensing Changes?
Our team of Microsoft Cloud Solution Provider experts can help you transition smoothly and optimize your licensing strategy. Get personalized guidance on CSP migration and license management.
Contact Us Today