06 Sep Pricing Changes for GP & NAV are On the Way – 3 Ways to Save Today
With the upcoming releases of Dynamics GP 2013 and Dynamics NAV 2013 before the end of the year, Microsoft has released a new pricing model called “Perpetual Licensing” that makes it easier for smaller and mid-size companies to test the waters of the new Microsoft Dynamics ERP solutions.
Both GP 2013 and NAV 2013 feature a Starter Pack, which includes core financial and distribution functionality and three user licenses. Additional advanced and industry specific functionality is available with the Extended Pack. Additional users can be purchased as either “full users” with full read and write capabilities to the system or “limited users” with full read capabilities but limiting writing capabilities.
With these affordably priced options coming soon, why would you want to purchase either Dynamics GP or Dynamics NAV before the releases of version 2013?
The answer is simple: SAVINGS!
You can set your organization up to save costs now and in the future by purchasing GP or NAV in September 2012. Here are three ways you could save by purchasing your new ERP solution today:
- Add Users While Saving Costs – When you purchase a Foundation Pack (single user) of either solution before October 1, 2012, Microsoft will convert the Foundation Pack into a Starter Pack (3 users) when you upgrade to GP 2013 or NAV 2013. Currently, a Foundation Pack for the Business Essentials version of either GP or NAV costs $2,250 while the Foundation Pack for the Advanced Management packages cost $3,980. However, if you wait until version 2013 is released, you would be paying $5,000 for the Starter Pack and an additional $10,000 for the Extended Pack. That’s a savings of 55%-73% depending on your business needs PLUS two additional full user licenses.
- Protect your List Price for Long-Term Savings – Your annual enhancement fee is a percentage of your system list price. Microsoft will “protect” your system list price if you purchase before October 1st. That means that if you buy a Foundation Pack in September, your system list price will be locked in at the original purchase price. However, if you wait until after October 1st to purchase a Foundation Pack, you’ll have to pay for additional users to get up to the 3 minimum users required in the 2013 Starter Pack and that cost will be added to your system list price.
- Upgrade your Functionality without Up-ing Your Costs – If you purchase GP or NAV prior to October 1st and are current on your enhancement plan, Microsoft will map your existing license configuration to an equivalent (and often superior) new license configuration at no additional cost whenever you choose to upgrade to version 2013.
Microsoft is calling this a “License Migration Transition Upgrade.” For example, if you currently own 1 concurrent Advanced Management user license ($3,980 value), you’ll own a Starter pack with 3 concurrent user licenses and the Extended Pack ($15,000 value) when you upgrade to 2013. Or, if you currently own Integration Manager ($5000 value), you’ll automatically get a 2013 Customization Pack ($10,000 value).
On the flip side, if you purchase GP or NAV between October 1st and the 2013 release date, you will be subject to what Microsoft is calling the “License Client Transition Upgrade” which means that you will get a monetary credit for your upgrade equal to your System List Price and you have to pay any balance for the new licensing. An example of this is if you only purchase a Foundation Pack of Business Essentials (1 user valued at $2,250), when you upgrade to 2013, you will have to pay $2,750 to purchase the two additional users required for the Starter Pack. If you have a single user that uses Advanced Management functionality that is only available in the Extended Pack, you’ll have to pay the $11,020 difference when you upgrade to 2013.