Dynamics 365 Implementation Cost

As an AlphaBold consultant, one of the most common questions I get asked by clients is, “How much does it cost to implement Dynamics 365?” It’s a fair question, but the answer is not always straightforward. 

The cost of implementing Dynamics 365 can vary widely depending on several factors, including the size of client organization, the complexity of business processes, and the level of customization required.  

In this blog post, I will provide a comprehensive guide to the costs you should consider when implementing Dynamics 365, along with cost ranges and examples to help you make an informed decision. 

1. License Costs 

The first cost to consider when implementing Dynamics 365 is the cost of the licenses. Microsoft offers a range of licensing options, including: 

  • Dynamics 365 Business Central 
  • Dynamics 365 Finance and Operations 
  • Dynamics 365 Sales 
  • Dynamics 365 Customer Service 
  • Dynamics 365 Marketing 
  • Dynamics 365 Field Service 

The cost of each license varies depending on the features and functionality included. As a general rule, the more advanced the license, the higher the cost. The following table provides a general range of license costs for each Dynamics 365 module: 

ModuleLicense Cost Range
Business Central$40-$100/user/month
Finance and Operations$190-$210/user/month
Sales$20-$95/user/month
Customer Service$20-$95/user/month
Marketing$1,500-$4,200/month
Field Service$95-$160/user/month

Example: A mid-sized manufacturing company with 100 employees and a complex supply chain process would require all employees’ Dynamics 365 Finance and Operations licenses. At a license cost of $200/user/month, the total license cost would be $20,000/month. 

2. Implementation Costs 

The second cost to consider when implementing Dynamics 365 is the cost of the implementation itself. This includes the cost of hiring a consultant or implementation partner to configure and customize Dynamics 365 to meet your business needs. The cost of implementation can vary widely depending on the complexity of your business processes, the level of customization required, and the number of modules implemented. The following table provides an average range of implementation costs for each Dynamics 365 module: 

ModuleImplementation Cost Range
Business Central$10,000-$50,000
Finance and Operations$100,000-$500,000
Sales$5,000-$25,000
Customer Service$5,000-$25,000
Marketing$25,000-$100,000
Field Service$10,000-$50,000

Example: A small retail company with 10 employees and a simple sales process would require Dynamics 365 Sales and Customer Service implementation. At an implementation cost of $15,000/module, the total implementation cost would be $30,000. 

3. Customization Costs 

The third cost to consider when implementing Dynamics 365 is the cost of customization. While Dynamics 365 offers a range of out-of-the-box features and functionality, it may not meet all of your business needs. . Businesses might require certain customizations to tailor Dynamics 365  in line with their scope and requirements. Customization costs can vary widely depending on the complexity of the customization required. The following table provides a general range of customization costs for each Dynamics 365 module: 

ModuleCustomization Cost Range
Business Central$5,000-$25,000
Finance and Operations$25,000-$100,000
Sales$2,500-$10,000
Customer Service$2,500-$10,000
Marketing$10,000-$50,000
Field Service$5,000-$25,000

Example: A large healthcare organization with 500 employees, and complex patient data management requirements would require Dynamics 365 Business Central customization. At a customization cost of $50,000, the total customization cost would be $50,000. 

Learn More About Dynamics 365 Services

Contact Us

4. Training Costs 

The fourth cost to consider when implementing Dynamics 365 is the cost of training. Ensuring your employees are adequately trained to use Dynamics 365 to maximize its benefits is important. Training costs can vary depending on the number of employees and the level of training required. The following table provides a general range of training costs for each Dynamics 365 module: 

ModuleTraining Cost Range
Business Central$500-$1,500/person
Finance and Operations$1,500-$3,000/person
Sales$500-$1,500/person
Customer Service$500-$1,500/person
Marketing$1,500-$3,000/person
Field Service$500-$1,500/person

Example: A medium-sized insurance company with 50 employees would require training on Dynamics 365 Finance and Operations. At a training cost of $2,000/person, the total training cost would be $100,000. 

5. Infrastructure Costs 

The fifth cost to consider when implementing Dynamics 365 is the cost of infrastructure. This includes the cost of hardware, software, and cloud services required to support Dynamics 365. The cost of infrastructure can vary depending on your organization’s size and complexity level of your infrastructure. The following table provides a general range of infrastructure costs for each Dynamics 365 module: 

ModuleInfrastructure Cost Range
Business Central$2,500-$10,000
Finance and Operations$10,000-$50,000
Sales$1,000-$5,000
Customer Service$1,000-$5,000
Marketing$5,000-$25,000
Field Service$2,500-$10,000

Example: A large logistics company with 1,000 employees and a complex supply chain process would require a significant infrastructure investment to support Dynamics 365 Finance and Operations. At an infrastructure cost of $50,000, the total infrastructure cost would be $50,000. 

6. Ongoing Maintenance and Support Costs 

The final cost to consider when implementing Dynamics 365 is the cost of ongoing maintenance and support. This includes the cost of software updates, bug fixes, and ongoing technical support. The cost of ongoing maintenance and support can vary depending on the support required and your organization’s size. The following table provides a general range of ongoing maintenance and support costs for each Dynamics 365 module: 

ModuleOngoing Maintenance and Support Cost Range
Business Central$1,000-$5,000/month
Finance and Operations$5,000-$25,000/month
Sales$500-$2,500/month
Customer Service$500-$2,500/month
Marketing$2,500-$10,000/month
Field Service$1,000-$5,000/month

Example: A large e-commerce company with 500 employees and complex order management requirements would require ongoing maintenance and support for Dynamics 365 Sales and Customer Service. At an ongoing maintenance and support cost of $3,000/month, the total continuing maintenance and support cost would be $6,000/month. 

Conclusion 

In conclusion, implementing Dynamics 365 can be a significant investment for any organization. It’s important to carefully consider all the costs involved before deciding. The costs include license, implementation, customization, training, infrastructure, and ongoing maintenance and support. While the costs can vary widely depending on the size and complexity of your organization, the benefits of implementing Dynamics 365 can also be significant, including improved efficiency, better data management, and increased productivity. 

When evaluating the costs of implementing Dynamics 365, it’s important to remember that different pricing options are available, including per-user, app-based, and module-based pricing. It’s also important to consider whether your organization will require customization and if so, to budget for those costs accordingly. Additionally, it’s important to budget for ongoing maintenance and support costs to ensure that your investment in Dynamics 365 continues to deliver value over time. 

To better understand the costs associated with implementing Dynamics 365, working with a AlphaBold consultant who can provide a more tailored pricing estimate based on your specific organizational needs is recommended. By working with a consultant, you can also better understand the features and functionality available in Dynamics 365 and best practices for implementation and ongoing maintenance. 

Example: A medium-sized manufacturing company with 100 employees and a need for inventory management and production scheduling would require Dynamics 365 Business Central with customization. The estimated costs for implementing Dynamics 365 Business Central with customization, training, and infrastructure would be: 

  • License costs: $15,000/year 
  • Implementation costs: $50,000 
  • Customization costs: $50,000 
  • Training costs: $1,000/person x 100 employees = $100,000 
  • Infrastructure costs: $10,000 
  • Ongoing maintenance and support costs: $3,000/month 

The total estimated cost for implementing Dynamics 365 for this organization would be $355,000 for the first year and $51,000/year for subsequent years. While this may seem like a significant investment, the potential benefits of improved inventory management and production scheduling could result in significant cost savings and increased revenue over time. 

Key Takeaways  

Overall, implementing Dynamics 365 can be a significant investment for any organization. It’s important to consider all the costs involved carefully and work with a AlphaBold consultant to ensure that you clearly understand the features, functionality, and pricing options available. By doing so, you can decide whether implementing Dynamics 365 is the right choice for your organization.