Microsoft has announced sizable price hikes for its Dynamics solutions, with some rising by as much as $30 per month.
The new costs will come into effect from October 1, 2024, marking Microsoft Dynamics’ first price change in five years.
The average price increase across all Dynamics products will be 12.6 percent, with the biggest increases prevalent across Finance, Commerce, and Supply Chain Management – all of which will see a $30 or 16.7 percent rise.
At the other end of the scale, the product least impacted by the changes will be Microsoft Relationship Sales, where users will still experience a 9.26 percent hike.
In discussing the company’s new price model, Microsoft’s Corporate VP of Business Applications and Platform, Bryan Goode, highlighted the benefits that customers have enjoyed since the last price increase in a blog post:
"Each year, we release hundreds of new features and enhancements designed to help people work smarter, reclaim time, and collaborate seamlessly.
As we look ahead, our commitment to our customers is to continue to offer the most value and highest return on your investment in business applications, helping to fuel digital transformation.
Goode's announcement also revealed that prices for Dynamics 365 on-premises customer engagement and operations products would mirror their respective cloud counterparts and rise by the same percentage.
While the announcement did not explain why some products will increase significantly more than others, it did confirm that the increase would impact new and existing customers globally as of October 1, 2024.
Microsoft Follows a Trend in CRM Pricing
The news of Microsoft’s sizable price increases will undoubtedly have shocked many customers, but for those with an eye on its competitors, it will come as no surprise.
In July of last year, Salesforce announced its own set of Cloud CRM price hikes.
The changes impacted several of Salesforce’s cloud and marketing tools and, like Microsoft, was the first instance of price increases from the company in quite some time (seven years).
The affected solutions included Service, Sales, and Marketing Cloud platforms, as well as Tableau and Industries, with the average increase across these products amounting to nine percent.
Furthermore, last month HubSpot announced that it would be implementing a new seat-based pricing model starting March 5, 2024.
