Understanding the Licensing Options for Microsoft Dynamics AX in 2025

Organizations are in a race to stay competitive in today’s dynamic business landscape. To gain control over their core processes, they must adopt advanced solutions that align with the evolving environment.

Business tools like Microsoft Dynamics AX have been predominantly used across industries for many years, and many organizations still rely on them. However, with the increasing focus on cloud innovation, Microsoft has ended mainstream support for on-premises Dynamics AX.

Dynamics AX has now been rebranded as Microsoft Dynamics 365 Finance and Operations, a cloud-based ERP that streamlines core business operations.

Existing users can continue using their Dynamics AX licenses, but they will no longer receive updates or support from Microsoft. To streamline operations and remain competitive in today’s dynamic market, users are encouraged to migrate to the cloud-based Dynamics 365 ERP.

The rebranded Dynamics AX, now part of Dynamics 365, offers organizations with the benefits of advanced AI, analytics, automation, reporting, and a wide range of Microsoft Cloud capabilities. Many readers may be curious to learn more about the licensing options and the cloud-based Dynamics AX features.

Dynamics AX Licensing

Dynamics AX licensing was available in various models, including the perpetual licensing model, user-based licensing, and module-based licensing.

• In the perpetual model, users made a one-time payment for indefinite use of the software but had to pay separately for maintenance, support, and updates.
• The user-based licensing model allowed access to AX based on individual users rather than devices or installations.
• On the other hand, the module-based licensing model enabled organizations to purchase licenses for specific modules as needed.

Dynamics 365 is available through a subscription model.

An ERP subscription refers to a cloud-based licensing model in which organizations pay a recuring fee monthly or annually to use the ERP system instead of purchasing it complete.

Here are the details about the Dynamics 365 Finance and Operations licensing

Full User License: Provides access to all functionalities of ERP – either finance or supply chain. This is often used by users who need full access to the application’s features. With access to complete features, core business users can execute daily operations, decision-making, and administrative jobs.

Operations Activity License: This is a role-based license that provides users with limited access to perform tasks. It is designed for users who need to access specific features but do not require access to full features.

Users can enter and update data, perform approvals, and manage simple operational tasks. They do not have access to configuring the system, financial management, or other critical system functionalities.

Team Member License: This license model is designed for users who need access to the basic functionality of Dynamics 365. It is a cost-effective option for users whose role is to perform functions like viewing data, reporting, or accessing basic information within the system.

Key features of the team member license include read-only data access, basic task capabilities, limited write access, and support for cross-functional collaboration.

Device License: This licensing model lets multiple users access Dynamics 365 ERP from a single, shared device. The device license is ideal for environments where several users use the same device to access Dynamics 365. By licensing devices rather than individual users, the device license provides a cost-effective solution for shared-use scenarios.

Key features include multiple users can use the licensed device to access the functionality of the system, allows access to capabilities based on assigned security roles, and more economical than buying user-based licenses.

Enhance business growth with cloud-based ERP solution

Considering the growing market scenario, it is valuable to make a transition to Dynamics 365 ERP. It brings value to your business operations with the power of AI, analytics, automation, reporting, and advanced security. With the cloud-based Dynamics 365 version, you can have an edge in the competitive landscape.

Dynamics 365 transform the core operations – including finance, supply chain, inventory, and warehouse operations – with the power of AI.

Some of the benefits include:

• Provides comprehensive visibility into finance and supply chain operations
• Automate tedious processes across finance and supply chain
• Reduce operational costs with AI insights and recommendations
• Improve financial planning with finance insights

If you are looking to make a transition from Dynamics AX to Dynamics 365, you can seek the support from LITS SERVICES, the leading Microsoft Gold Partner.

They help you choose the right licensing plan and offer Dynamics 365 ERP implementation based on your business goals. The experts will help you upgrade your existing Dynamics AX to cloud version, Finance and Operations, and help you jumpstart your business in 2025 and beyond.