Business Ready Licensing Transition Explained for Existing GP Customers

In 2006 Microsoft launched a whole new pricing regime in order to make the Dynamics ERP products, including Dynamics GP, more competitive in the marketplace. This licensing model, known as Business Ready Licensing (BRL), bundled a huge range of modules or functionality into a single user price - read our earlier article on BRL.

Initially only available to new customers, this model then became accessible in 2007 to existing Dynamics customers.

As an existing Dynamcs GP (Great Plains) customer, you may find a transition advantageous in one of two ways:

• By extending the solution to new areas of your business, such that Business Ready Licensing can trigger even greater gains in efficiency and generate overall cost reductions.
• By increasing the capabilities of those already using the solution, such as enhancing financial management to improve compliance or reporting capabilities. The components table for Advanced Management will give you a clearer idea of which additional modules are included in the Business Ready Licensing user price and which are available at additional cost (a la carte).

However, there are certain requirements which need to be met before a transition can occur:

• Transition Fee. You will be required to pay a one-off Licence Model Transition fee.
• Current Customer Services Plan. You must be current on your Enhancement Plan.
• Component Deactivations. If you have deactivated functionality during the last 6 months you will not be allowed to transition to BRL until either of the following actions has been performed
  • you reactivate the module, or
  • wait a minimum of 6 months from the date of deactivation before transitioning.
• Module Based Professional Users Purchases. If you have licensed additional MBL users within 12 months prior to the transition, you will be charged the difference between the current Business Ready Full Access User Licence price and the current Module Based Professional User Licence price. This difference will be added to your system list price to calculate the new Protected List Price - the latter serves as the basis on which to calculate your annual Enhancement Plan fees (which for BRL is 16% and not 13%).
• New Customer Service Plan. You are required to purchase a minimum one year of the Business Ready Enhancement Plan/Customer Support Plan when you transition. You will be credited for any unused portion of your existing pre-paid plan (calculated pro-rata from the date of transition to expiry date of existing plan).

Before embarking on a BRL transition, we strongly recommend you contact us to talk through the areas of your business where you would wish to see increased automation and efficiency gains by extending the range or functionality of your Dynamics ERP system. We will help you put this decision in the context of your longer term business plans and objectives.

Customers need to be mindful that there are no plans at this time on the part of Microsoft to discontinue the Module Based Licensing scheme for those customers who licensed the GP product on or before 13th October 2006. Customers will be able to licence additional modules and/or users from the MBL price lists for as long as the product is supported. What must be noted, however, is that the Enhancement Plan fee will increase from the current 13% to 16% for all MBL customers in 2010.

Contact us now for more information or to initiate a discussion on whether a Licence Model Transition is the right step for you.

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