Notice: Business Central pricing update is coming in October, 2025.
After more than seven years without a change, Microsoft is increasing the price of Dynamics 365 Business Central—both for on-premises users in 2024 and for cloud subscriptions in 2025. The changes reflect Microsoft’s ongoing investment in Business Central’s capabilities, including new AI tools, analytics enhancements, and better interoperability across the Microsoft ecosystem.
Effective October 1, 2025, Microsoft will increase subscription pricing for Dynamics 365 Business Central:
- Essentials: rising from $70 to $80 per user, per month
- Premium: increasing from $100 to $110 per user, per month
- Device License: moving from $40 to $45 per device, per month
October 2025: Cloud Subscription Pricing Update
For cloud customers, Microsoft will introduce new Business Central subscription pricing. These changes affect all new subscriptions and renewals on or after October 1, 2025.
New Pricing (Annual Contracts, Paid Annually):
| License Type | Current Price | New Price |
|---|---|---|
| Essentials | $70 per user/month | $80 per user/month |
| Premium | $100 per user/month | $110 per user/month |
| Device | $40 per device/month | $45 per device/month |
Note: Team Member licenses are not impacted by this update.
Storage Increases Included:
| License Type | Current Storage | New Storage |
|---|---|---|
| Essentials | 2GB | 3GB |
| Premium | 3GB | 5GB |
| Device | 1GB | 1.5GB |
Additional Increases Based on Contract Type:
- Annual, paid monthly: +5%
- Monthly, paid monthly: +20%
Why the Price Hike? A Look at Years of Innovation
This pricing update isn’t arbitrary—it reflects years of consistent improvements across Business Central. Microsoft has significantly expanded the platform’s capabilities, especially in these areas:
1. AI-Powered Copilot
- Automates tasks like generating sales orders and replying to emails
- Summarizes complex data and suggests next steps
- Saves time, reduces errors, and boosts efficiency
2. Enhanced Analytics
- Built-in Power BI dashboards and seamless Excel integration
- New reporting tools for inventory, production, and forecasting
3. Power Platform & Microsoft 365 Integration
- Automate processes with Power Automate
- Share ERP data directly in Outlook, Excel, and Teams
- Eliminate silos between business apps
4. Sustainability Management
- Track emissions, waste, and energy use
- Generate ESG and CSRD-compliant reports
- Build sustainability goals into your ERP
5. Improved Data and Compliance Tools
- Subscription billing and revenue recognition
- Master data management
- Support for global regulatory standards
These advancements help businesses work faster, smarter, and more efficiently—and Microsoft’s pricing is adjusting to reflect that value.
How to Lock In Current Pricing Before the Deadline
You still have time to avoid the new rates—if you act before September 30, 2025.
Microsoft offers multi-year contracts (12-, 24-, or 36-month terms) that allow you to lock in the current pricing. This means you’ll continue paying today’s rates even after the increase takes effect.
Example:
A company that signs a 3-year Essentials contract before the deadline will continue to pay $70/user/month instead of the new $80 rate—saving 14% per user for the full term.
This is especially valuable for companies with:
- Large user counts
- Complex ERP footprints
- Predictable budgeting needs
Many of our customers are already taking advantage of this option to lock in savings before the window closes. Be sure to speak with your Business Central partner. If you don’t already have one, read this article on the best Business Central manufacturing partners.
What Should You Do Next?
To get ahead of these changes:
- Audit your licenses: Are you under- or over-licensed? Could new features replace third-party tools you’re paying for?
- Review your renewal dates: Plan around the increase and align your terms for maximum savings.
- Consider migrating from NAV or GP: Cloud-based Business Central is the long-term roadmap—and now’s the time to get ahead of both cost and complexity.
- Talk to your implementation partner: A licensing and migration strategy tailored to your business can save you money and headaches down the road.
Final Thoughts
Microsoft Dynamics 365 Business Central remains one of the most cost-effective, full-featured ERP solutions for SMBs. While the price increases in 2024 and 2025 may require budget planning, they come with more functionality, better integration, and long-term scalability.
The key is to act now—by reviewing your options, locking in pricing, and making a plan to transition, your business can avoid unnecessary costs and maximize your ERP investment.
Contact Sabre Limited today to schedule a consultation and start planning ahead for the pricing changes coming in 2025.
Frequently Asked Questions
Q: Can I still buy on-premises licenses after 2025?
A: No. Starting April 1, 2025, Microsoft will no longer offer perpetual on-prem licenses to new customers. Subscription-based on-prem licensing will still be available.
Q: What if I already have a multi-year contract?
A: If you signed your contract before the increase and locked in pricing, you’ll continue to pay the agreed-upon rate until your term ends.
Q: Is the Team Member license price changing?
A: No. Team Member pricing will remain unchanged for now.
