Benefits and Insights

Why use Microsoft Dynamics AX 2012?

Key differentiators & advantages of Microsoft Dynamics AX 2012

  • Purpose-built capabilities for manufacturing, distribution, retail, public sector, and services organizations in a single solution 
  • Supports single instance and two-tier deployment models, across distributed, international organizations 
  • Provides rich end-to-end business process support including finance; human resources; governance, risk, and compliance; and supplier relationship management
Cost of Ownership

Typical cost structure for Microsoft Dynamics AX:

License/Subscription Cost

User-based subscription licensing (USL) model offering both On-Premise and Cloud-based/SaaS installation

MS Dynamics AX offers a flexible per-user licensing model, based on monthly subscriptions. MS Dynamics AX is licensed through Microsoft Volume Licensing and the Cloud Solution Provider Program

MS Dynamics AX is available through the following Volume Licensing Programs:

  • Enterprise Agreement: The Microsoft Enterprise Agreement (EA) is the licensing program for commercial and government organizations
  • Enterprise Subscription Agreement: An option under the Enterprise Agreement that provides lower initial cost based on a three-year subscription term. Users have the option to increase or decrease subscription counts on an annual basis, and non-perpetual licenses that end with user subscription term
  • School Enrollment: It is for primary/secondary schools and preschools and offers simple licensing of all products being used by the organization
  • Enrollment for Education Solutions (under the Campus and School Agreement): The Enrollment for Education Solutions (EES) is a subscription licensing offering available to both primary/secondary and higher education institutions. Licensing is based on number of users using the PC/devices

MS Dynamics AX offers two-tier pricing model:

  • Dynamics Enterprise Agreement (EA): Pricing based on 3 user types (please see pricing section for details)
  • Cloud Solution Provider (CSP) Partner: CSP Tier 1 partners are able to bundle monthly AX hosting with tailored services for Dynamics AX on Azure. Prices will vary depending on the Dynamics Partner chosen and the level of services offered by them

On-Premise: User-based subscription licensing model – per user per month


  • Based on per user per month model; inclusive of infrastructure
  • Offers three user types (Please see pricing section in detail)
  • Dynamics AX cloud subscriptions will include software licenses and the Azure cloud infrastructure
  • The new MS Dynamics AX licensing for cloud will initially only be available through Microsoft and will be made widely available six months from the initial release

MS Dynamics AX gives Dual Use Rights to users – option to deploy either in Microsoft Cloud or in a private On-Premise or partner-hosted cloud

Maintenance Cost

For both types of deployments:

  • Professional Direct Support offerings cost $9,000/month (equivalent to 100 seats). Each User SL must be licensed for support option
  • Support subscription plan is applicable for all users licensed to MS Dynamics AX
  • Mixing and matching of support offerings is not allowed
  • Includes one production Instance and Azure infrastructure. Users are not paying anything extra for Azure plus additional data storage
  • Unlimited Break/Fix Support: Unlimited online and phone support for basic technical break/fix support is included for customers who purchase through Volume Licensing and resolve issues with next business day response. Additional support can be purchased which is provided by the Dynamics Partner. Customers purchasing direct from a CSP provider will be provided support directly through the partner
Installation/Implementation Cost

For both types of deployments:

  • Cost is over and above the license cost/subscription cost
  • Cost will vary depending on time and expertise in developing, configuring and coordinating the project, scope of the implementation and complexity, number of users, system architecture, company size, industry, additional applications, add-ons and third-party integrations
  • The implementation costs range anywhere from one-and-a-half to three times the upfront software cost
  • Mandatory to get implemented through authorized implementation partners
Customization Cost
  • MS Dynamics AX is fully customizable with over 10,000 menu items which are mapped to the three user types
  • Cost will vary depending on the type of menu items being mapped with the type of user namely – Enterprise User, Task User and Self-Service User
  • Third-party add-ons are available to extend the ERP software with features and functions for specific vertical
  • Third-party add-ons typically account for 20% to 30% of license cost
Data Migration Cost/Change Management/Upfront Switching Cost
  • Each user using MS Dynamics AX subscription services is entitled to receive certain default storage – which is equivalent to 10GB storage plus an additional 2.5GB for every 20 users above the 20-user minimum
  • Cost will vary depending on amount and type of data to be migrated from the legacy system, availability of migration tools, data profiling, data cleansing to eliminate errors and audit trail of the migration process for accountability
Training Cost
  • Provides Professional Direct Services which includes unlimited access to online training such as E-learning, Training materials and Learning Plans
  • Cost will vary depending on the type of training courses and certifications opted
Recurring/Renewal Costs For both types of deployments, cost is equivalent to the user-based SL’s purchased, additional USL’s purchased, customization, maintenance, third-party integration, implementation and training cost
Pricing Details
Product Name Description Price/Details
Pricing for Microsoft Dynamics AX
  • MS Dynamics AX offers three user types pricing model namely -Enterprise User, Task User and Self-Service User
  • Task User: Approve time/expenses/invoices, add sales and purchase invoices
  • Self-Service User: Record time & expense, create requisitions & budget activities, view rights into AX
  • Functional User is no longer available

Starting at $190/user/month

Enterprise Agreement Dynamics AX cost/user

  • Enterprise User: $185/user/month for a minimum of 20 users
  • Task User: $30/user/month
  • Self-Service User: $8/user/month
  • Device licenses are also available intended for POS, Warehouse & Store Manager Devices for $73/user/ month
  • One Enterprise User can be swapped out for 2.5 Device CALs - no other swapping of licenses is allowed
Deployment Options What options are available for product deployment? Cloud-based/SaaS & On-Premise
Pricing Model What is the pricing model? Subscription-based
Minimum Commitment Is there a minimum monthly or yearly commitment required for purchase?
  • Minimum 20 licenses are required and out of these 20, five must be Enterprise Users. Other can be either Team Users, Enterprise Users or combination of latter two
  • Team Users and Enterprise Users require minimum 10 users
Custom Quote Is there an option of requesting custom quote? Available
Free Trial Does the vendor provide a free trial option? 30 Day Trial
Product Limitations

Some of the product limitations include:

  • Long and complex implementation process
  • The solution cannot be implemented without a Microsoft approved partner which turns out to be expensive
  • Does not provide single option to reverse a journal entry
  • Complex features and functionalities requiring intensive IT training and in-house IT support

SAP Business ByDesign: Starting at $149/user/month

Infor ERP SyteLine: Starting at $42,000 for 10 users

Sage X3 ERP: Starting at $2,600/license

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