BREAKING – AX 2012 R3 Removed from Price List, New Mid-Tier User License for Dynamics 365 & More
All good things must come to an end. As many in the Dynamics community had been pressing and hoping for, an on premise version of Dynamics 365 for Operations is here, but with it comes the inevitable aftershock. Once Microsoft revealed the “Local Business Data” Dynamics 365 for Operations deployment option, AX 2012 R3 was immediately on the clock.
Effective July 1, 2017, AX 2012 R3 will no longer be available for new customers. While the news is not unexpected, the timing is sooner than most anticipated. What does it mean for you?
- Existing AX 2012 customers will still be able to purchase additional licenses as required, though after July 1 they will be based on a new pricing list. Existing licenses will not be impacted if customer stays current on Enhancement Plan
- Microsoft has listened to the community and stepped in the right direction by adding a new ‘middle-tier’ user license to Dynamics 365 called “Activity”. This is not a direct replacement of AX 2012 Functional license, but it is a similar license that adds more functionality at less cost than the full Operations licenses. At this point in time, we still expect that more users will require the Operations license vs. what used to be called Enterprise
- Dynamics 365 for Operations user licenses are now structured as:
- Operations
- Activity
- Team Members
- Device
- Dynamics 365 on premise customers will also need AX Server (On Premise) and, optionally Commerce Server (On Premise)
- After July 1, all licenses will be invoiced according to new pricing
- Business Value Discounts will continue to be available for AX 2012 R3, but not Dynamics 365 for Operations Local Business Data
- Customers must be active on Enhancement Plan to move to Dynamics 365 for Operations and will need to remain active to have continued access to their license
- Customers must be active on an Enhancement Plan to access LCS and maintain their right to use Dynamics 365 for Operations, even if they have the On Premise solution
- AX 2009 customers will no longer be able to transition to AX 2012 R3, instead they will go directly to Dynamics 365 for Operations
One can easily anticipate that by establishing a single solution set (available on premise or in the cloud), the development focus has officially shifted solely to Dynamics 365. What does this mean for AX 2012 customers?
- Continued functional enhancements will probably only be available for Dynamics 365
- Bug fixes and necessary code maintenance will still be available for Dynamics AX 2012, but functional improvements will likely decelerate rapidly
To add to your information overload, Dynamics 365 for Operations Platform Update 5 was recently released. There are some changes in development and customization, as well as personalization. Check it out here.