Your Complete Guide to Microsoft Dynamics 365 Implementation Costs

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You’ve found that Dynamics 365 is a great fit to help you manage enterprise resources and help with customer relationship management, but understanding the costs of implementation can be a challenge. Dynamics offers functionality for sales and customer service, to finance and operations—but Microsoft Dynamics 365 implementation costs can be steeper than you think.

To get the most from your implementation, you need to know that Dynamics 365 is not just a plug-and-play solution; it requires careful planning, customization, and training. Additionally, your licensing costs are determined by the specific modules you choose, and the implementation costs can vary based on the size and complexity of your project.

In this blog, we’ll go into the costs you can expect, how they’re structured, and the factors you can expect to impact your bottom line.

Approaches to Costs

Though you might think of Dynamics 365 as an easy-access software with simple, all-in-one pricing for implementation, that isn’t the case. You’re looking at a cost breakdown of:

  • License costs: Each license, like for Business Central or Finance and Operations, depends on features and functionalities. If you’re looking for more advanced features, plan to pay more.
  • Implementation costs: Though this is an obvious one, it bears mentioning: Implementation costs cover hiring a consultant to help you through the process.
  • Customization costs: Does Dynamics 365 meet your workflow requirements? If you try to deploy Dynamics 365 right out of the box, you might find some essentials missing in terms of customization.
  • Training: This has to do with the costs of getting your employees up to speed on Dynamics 365 and everything it can help them with.
  • Infrastructure: Infrastructure costs cover what you need to successfully implement Dynamics 365, like cloud options, hardware, and software.

As you’re looking at your overall cost of implementation, keep in mind that other factors are going to also impact what you ultimately pay. Think along the lines of the size of your organization, the complexity of the way you do business, and the extent to which you need to customize your Dynamics experience.

Learn more about the power of Dynamics with these blogs:

 

Microsoft Dynamics Cost of Implementation: The Breakdown

1. Subscription (License) Costs:

In terms of licensing, you can choose from:

  • Dynamics 365 Business Central: Business Central is designed for small to medium-sized businesses to help streamline and automate processes. This covers areas like sales, purchase order processing, and inventory management.
  • Dynamics 365 Finance and Operations: Formerly known as Dynamics AX, Finance and Operations is Microsoft’s primary ERP solution, designed for larger enterprises and covers modules for financial management, inventory management, warehousing, retail, and manufacturing.
  • Dynamics 365 Sales: Sales is a Customer Relationship Management (CRM) solution that helps businesses manage their sales processes, from lead generation to closing deals.
  • Dynamics 365 Customer Service: Another CRM, Customer Service is focused on providing support and service to customers with tools for ticketing, knowledge base management, and customer self-service portals.
  • Dynamics 365 Marketing: This option helps businesses run multi-channel marketing campaigns. Tools include email marketing, event management, and lead scoring.
  • Dynamics 365 Field Service: Designed for businesses with field agents and technicians, Field Service provides tools for scheduling, dispatching, and managing work orders, as well as asset management and inventory control.
Tip: Remember! The more advanced the license and the more customization you need for your implementation, the more it’s going to cost.

License Costs at a Glance

Before we take a look at the cost of implementation, here’s a breakdown of what you need to know about costs of licenses.

Module Costs for License
Business Central Essentials: $70 per user per month

Premium: $100 per user per month

Finance and Operations $180 per user per month
Sales  Professional: $65 per user per month
Enterprise: $95 per user per month
Premium: $135 per user per month
Customer Service Professional: $50 per user per month

Enterprise: $95 per user per month

Marketing $1,700 per tenant per month
Field Service $95 per user per month

 

2. Implementation Costs:

As always, though these are subject to a number of factors, broadly speaking you’re looking at:

  • Small Projects: $20K to $50K
  • Medium Projects: $75K to $150K
  • Large Projects: $150K+

Microsoft Dynamics Implementation Costs at a Glance

Module Implementation Costs
Business Central $15,000 to $55,000
Finance and Operations $125,000 to $525,000
Sales  $10,000 to $30,000
Customer Service $10,000 to $30,000
Marketing $30,000 to $110,000
Field Service $15,000-$55,000

 

3. Customization Costs

Most of the time, customization costs depend on the specific requirements of the business and the complexity of the changes needed.

Generally speaking, you can expect to pay for customization:

  • Business Central: $7,000-$28,000
  • Finance and Operations: $28,000-$107,000
  • Sales: $3,500-$11,000
  • Customer Service: $3,500-$11,000
  • Marketing: $13,000-$53,000

Field Service: $6,000-$26,000

 

4. Training Costs

Training costs can likewise vary based on the number of users, the complexity of the system, and the mode of training (online, in-person, etc.). While there isn’t a set cost associated with training you members, here’s a few pointers to keep in mind:

  • Start training with an assessment of what your team already knows: This will help spotlight knowledge gaps and further inform how you approach upskilling your team.
  • Foundational training: With this, introduce the core concepts, user interface, and basic functionalities of Dynamics 365. Make sure all your users have a consistent understanding of the platform’s layout and navigation.
  • Role-specific training: This is an opportunity, for example, for your sales teams to delve into the CRM functionalities, finance teams explore the ERP modules, and customer service teams focus on ticketing and support tools.
  • Ongoing support: Make sure team members who need additional learning support have access to materials that can help them master Dynamics 365, like user manuals, video tutorials, and cheat sheets.

 

5. Infrastructure Costs:

The good news? Since Dynamics 365 Business Central is cloud-based, you’re likely looking at infrastructure costs that would primarily be subscription-based. This means you won’t need to worry as much about your on-premise infrastructure.

If you’re planning on taking a hybrid approach, however, you may still need to invest in certain infrastructure components. For example, secure VPN connections for data synchronization between on-premises systems and the cloud. You also need to make sure your business has adequate bandwidth to ensure seamless data flow and real-time access to cloud resources.

 

Get ROI From Your Dynamics 365 Implementation

Guarantee your Dynamics 365 implementation is smooth right from the start when you rely on our expertise. Beyond just implementation, we take pride in providing end-to-end support, from customization and training to post-deployment assistance.

At 1Rivet, we:

  • Providing technology expertise for over 14 years
  • Offer 24/7 Dynamics 365 support
  • Take pride in being a Microsoft Gold Partner

Don’t leave your Dynamics 365 investment to chance. Trust 1Rivet to unlock the full potential of your enterprise software.

Contact us today to get started.