Microsoft Dynamics 365 continues to evolve rapidly—introducing AI‑powered features, deeper integrations, and expanded cloud services across its CRM and ERP portfolio. Yet, while the product modernizes, Dynamics 365 licensing remains one of the most confusing aspects for organizations.
With the release of the January 2025 Dynamics 365 Licensing Guide, Microsoft has introduced critical updates that directly impact cost, compliance, and long‑term cloud strategy. Whether you’re already invested in Dynamics or just beginning to evaluate options, this guide will help you avoid common pitfalls and stay compliant.
Key Updates in the January 2025 Licensing Guide
Two standout changes every organization should note:
- Sales Premium added to the Capacity License Table: This addition provides organizations with more flexibility to align licensing with actual usage patterns. It can help reduce costs for teams that need advanced features without over‑licensing.
- Customer Voice removed from Customer Service Premium: This change could disrupt customer feedback loops and survey workflows if not addressed. Businesses relying on Customer Voice should plan alternative integrations to maintain seamless customer experience.
If your business relies on these tools, now is the time to re‑evaluate entitlements and adjust license alignment before renewal.
Understanding the Base + Attach Licensing Model
Microsoft uses a Base and Attach model for Dynamics 365 licensing:
- Base License: The most expensive app is purchased first as the foundational license. This ensures that the primary workload—such as Sales or Finance—is fully covered.
- Attach Licenses: Additional apps can be added at lower costs if the user already holds a base license. This allows organizations to expand functionality without duplicating costs.
Why it matters: This structure allows organizations to build cost‑effective bundles, avoid redundant licenses, and pay only for what’s necessary. It’s a smart way to scale usage across departments while keeping budgets under control.
Multiplexing: The Silent Compliance Risk
Multiplexing is one of the most misunderstood—and heavily enforced—concepts in Dynamics 365 licensing.
It refers to indirect access, where users interact with Dynamics 365 data without logging in directly. Examples include:
- SAP users accessing synced Dynamics 365 data: Even though they never log in, they benefit from Dynamics data, which requires licensing.
- Power Automate workflows pushing/pulling Dynamics data: Automated flows can create hidden licensing obligations if they serve unlicensed users.
- Third‑party apps or middleware pooling connections: Middleware can mask the true number of users, but Microsoft still requires licensing for each beneficiary.
Bottom line: Multiplexing is a compliance trap. Left unchecked, it can trigger unexpected costs and audit risks, making proactive monitoring essential.
Aligning Licensing with Business Needs
Microsoft offers multiple licensing models to fit different scenarios:
| License Type | Best For |
|---|---|
| Per User | Ideal for employees who need full access to Dynamics 365 features daily. This model ensures individual accountability and tailored access. |
| Per Device | Perfect for shared environments such as retail counters, logistics hubs, or kiosks. It reduces costs by licensing the device instead of each user. |
| Tenant-Based | Designed for broader services like Customer Insights or e‑Invoicing. This option is best for organizations that need enterprise‑wide capabilities without tying licenses to individuals. |
Organizations can also leverage Power Apps and Power Automate licenses to handle specific processes without requiring full Dynamics access. This approach can significantly cut costs when workflows are scoped correctly and aligned with business goals.
How The IT Strategists Can Help
Dynamics 365 licensing is complex and constantly changing. That’s where our team comes in. We help organizations:
- Evaluate licensing footprints for cost‑saving opportunities: By analyzing current usage, we identify areas where licenses can be consolidated or downgraded.
- Ensure compliance with multiplexing policies and Microsoft’s audit framework: We proactively address hidden risks to prevent costly surprises during audits.
- Simplify license entitlements using shared resource activation: This streamlines management and reduces administrative overhead.
- Transition between Base/Attach models to minimize over‑licensing: We help organizations restructure licensing bundles to maximize efficiency and ROI.
Whether you’re optimizing licensing for CRM, ERP, or custom Power Platform integrations—we’ve got you covered.
Avoiding licensing “gotchas” in Dynamics 365 requires proactive planning, compliance awareness, and strategic alignment with business needs. By understanding the latest updates, the Base + Attach model, and multiplexing risks, your organization can stay compliant while maximizing ROI.
Ready to simplify your Dynamics 365 licensing strategy? Our experts can help you uncover cost‑saving opportunities, ensure compliance, and align licensing with your business goals. Book your free consulting call today and take the first step toward smarter, compliant Dynamics 365 licensing.