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Microsoft Dynamics NAV / Business Central Pricing: ON- Premises & Cloud

Microsoft Dynamics 365 Business central

Enterprise Resource Planning software that belongs to Microsoft is MS Dynamics NAV / Business Central. It constitutes a segment of the Microsoft Dynamics family. Navision was the real ERP system that hailed from the accounting package of Denmark for the Microsoft Dynamics NAV. This post will shed light on the MS Dynamics NAV price model.

Among the 4 Businesses of Microsoft, ERP was made to link the business units under one system. Similarly, being easily flexible, the ERP software goes about to help small and medium-sized businesses to facilitate sales, operations, inventory, and accounting management automatically.

The system also gives the functionality of a kind for government, manufacturing, and other industries. A specially designed functionality for the government, distribution, manufacturing, and retail is also available in the system. 

This software best suits for businesses that are midsized. Most of the functionality is limited to retail, manufacturing, government, and distribution.

Moreover, you can define the budget and cost of ERP software by considering the three major areas:

  • The software license cost; 
  • Maintenance and support; 
  • Implementation services. 

Cost of the Microsoft Dynamics NAV / Business Central

When it comes to the MS Dynamics NAV price, you can pay for this software in the two ways specified that are in the Cloud or on-premise. 

On-premise or a presented solution signifies that the client purchases the rights to utilize the software continuously and also gets it installed in the server, wherever it may be situated.

You can also get the alternate one, known as the subscription-based licensing. It is quite popular in the latest years as they remain faster in development on Cloud and turned out to be a bit potent. If you look at the past, most of the implementations of ERP had been the on-premise ones.

The benefit of on-premise is the authority of both performance and security. Some of it has been hysterically emotional as people are quite confident in the consumption of technology on rent, Moreover, there have been expectations in the subscriptions based implementations demand to grow.  

Microsoft Dynamics NAV should be purchased via the partners of Microsoft Dynamics or by VAR (Value added Reseller).

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The Pricing of Microsoft Dynamics NAV ON- Premises

While setting up the on-premises, the necessary hardware and the dynamic infrastructure is provided by the clients for Dynamics NAV. From the perspective of licensing, the Dynamics NAV constitutes of two packs that are the Starter Pack and the Extended Pack

A buyer must ascertain for such things while taking the buying decisions. A minute observation at that moment itself will lead them to avoid any unnecessary problems in the later stage.

Starter and Extended Pack

The starter Pack has the core functionality that addresses the processes of Business for distribution and accounts. It also includes the three full user licenses. This signifies that only a small company will require the starter pack. Similarly, the extended pack gives full functionality and addresses the manufacturing, full jobs/ projects, and CRM.

Chargeable Fee:Additional Fee:
Starter Pack$5000 (Including three full users)
Extended Pack$10000 (for the need of manufacturing or project accounting functionality)$3000 (For additional Users), $600 (for read only users), $125( Self Service users)

All types of users are circumstantial, except for the self-services that are the named users. However, there might be additional costs if you plan to expansively customize NAV.

Full UserWith a coexisting license, a full user can access all the systems. The individual user may have some restrictions, depending on the permissions that are linked with their log in. The MS Dynamics NAV price of the Full user could go up to $2700 per user CAL. 
Limited User A limited user is a license that can get hold of the system, but only a limited area of it can be written. Once again, the actual user is posed with the restrictions through the associations of permissions with their log in. The MS Dynamic NAV price for the limited users would be around $540. 

Microsoft Dynamics NAV Pricing for Cloud

MS Dynamics NAV price for Cloud usually costs between $185 to $400 for each user per month. It is the number of users and the functionality that impacts the final price therefore the pricing might vary accordingly. 

Dynamics Business Central NAV consulting

Hybrid- the Microsoft Dynamics NAV is to be purchased and the Licenses are to be Hosted

If you are interested in buying the Microsoft Dynamics NAV / Dynamics 365 Business Central and have your licenses hosted by the provider, then the pricing for the NAV would be equivalent to the on-premises model. Keep all these factors in mind while taking your buying decisions.   

What are other things included to the MS Dynamics NAV license?

  • Implementations are to be started with the Starter Pack and additional full user’s licenses.
  • You may require the Extended Pack, but also mention the number of Limited user licenses required.
  • Also, limited Users did not have the advantage 10 years ago for getting access to the ERP system. It was not cost effective nor that helpful
  • As the ERP software developed, employees were given easy access.
  • Lastly, the ratio of the limited users to full users is 60% and 40% respectively.

Microsoft Dynamics NAV- Support and Maintenance

Support and maintenance are a much-needed commitment for the first year. The Microsoft maintenance agreement known as the Business Ready Enhancement Plan provides the Software Support and constitutes 16% of the license. 

Moreover, BREP gives entitlement to upgrades, customer source online community, service packs, and training facility.

There are other platforms like TVision as the Microsoft Partner. They give the end-user support and the telephone helpdesk, and it is chargeable at 10 of the license Value.

Other Add –Ons

Payrolls could have an additional support cost, although you can follow the same model.

MS Dynamics Price for Implementation Services

Service Costs

You can estimate the costs of consultancy and project management on the basis of the project. As per experience, there have been service costs which were 1 to 2 times the software cost.

Inclusions of Consultancy Services

  • Training
  • Development
  • Consultancy
  • Data Migration

The Difference between In House and Bought in Services

  • You could go on and buy some services either from an in-house or head out to buy from a recognized partner.  You could perform some of the projects with the in-house resource whereas others feel that they need senior management to support and also by the rest of the company.
  • The Service Budget will be affected based on the approach taken with regards to data migration and training. In addition to this, even the analysis numbers carried out in-house by the client will also affect the service budget.
  • To allocate in-house people, there is most likely an internal cost. Similarly, one option could be to take temporary staff into consideration to free up more time.

Unknown Aspects

We can predict too many scenarios when it comes to assessing risk. But yet you could go ahead predicting in some cases:

  • Your Building can be struck by lightning.
  • Secondly, your company can be bought out.
  • The Project manager can also be offered something better and leave.

There are at the very extreme and exceptional cases, which do not happen at the early stages of project costing.

Know you Estimate

You can provide the estimate once there is a higher level of scope for the project and get to know the likely number of users. To obtain cost can be a tough area, but the service companies are usually transparent and display the price lists and spreadsheets for the calculations of the service day.

Implementation Methodology- The TVision also contains an implementation methodology that can carefully monitor the go-forward budget and can also administer change control procedure, in a manner that when the budget is set, it is only alternated through a complete agreement of the project sponsor and project manager.

Most trusted global ERP Solution today 

Microsoft Dynamics NAV ERP is the most trusted global software today. It provides some of the concluded solutions to Management Accounting and Financial Management amongst others, in addition to which the production, inventory, and the vendors are tracked as well as managed smoothly.

What is more special about this software is that it creates a determined count or a measure. It keeps track of the projects, and manages the space.

Use of Microsoft Dynamics business central

You get to see the overruns in budget and unexpected costs. When there is too much functionality that the client adds, as and when there is progress in the projects. Also, when the partners have been cost-effective in telling the truth on what the software could offer in the pursuit of competing on the price.  

The MS Dynamics Price would be the major concern of a lot of many people. As Pricing and budget is huge concern for organization before implementing ERP System.

The management of the project and the stringent procedures in change control are important. It ensures that the projects are facilitated to meet all those expectations that have been determined besides the inclusion of the budget.

Errin OConnor

Errin OConnor

With over 25 years of experience in Information Technology and Management Consulting, Errin O’Connor has led hundreds of large-scale enterprise implementations from Business Intelligence, Power BI, Office 365, SharePoint, Exchange, IT Security, Azure and Hybrid Cloud efforts for over 165 Fortune 500 companies.

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