From October 2025, Microsoft will introduce a new pricing structure for Dynamics 365 Business Central. This marks the first price rise in over five years.
While the increases are moderate, they will impact both new and existing customers. So, what exactly is changing, why is this happening, and what should your organisation do to prepare?
What Is Happening To Licensing Costs?
Starting 1 October 2025, Microsoft will apply new pricing to all new subscriptions of Dynamics 365 Business Central, with existing customers moving to the updated rates upon their next renewal after this date.
The changes apply to both user and device licences:
- Business Central Essentials: Increasing from $70 to $80 per user/month
- Business Central Premium: Increasing from $100 to $110 per user/month
- Business Central Device licence: Increasing from $40 to $45 per device/month
In addition to pricing updates, Microsoft is also increasing the associated storage entitlements across all licence tiers.
For example, Essentials users will see storage rise from 2GB to 3GB, while Premium users will receive 5GB (up from 3GB). This additional capacity aligns with growing data demands, but does add to the overall cost for businesses.
Why Is Microsoft Raising Prices?
While price increases are never welcome news, Microsoft’s rationale reflects the evolving value of the Business Central platform.
Over the past five years, the solution has matured into a more intelligent, connected and scalable ERP system—particularly for SMEs and mid-market organisations.
Key product enhancements include:
- AI integration via Microsoft Copilot for tasks such as financial analysis and account reconciliation.
- Improved analytics and reporting for both financial and manufacturing data.
- Expanded localisation support, enabling greater ease of deployment in new markets.
- Interoperability improvements with the wider Microsoft ecosystem, especially Power Platform applications.
- New sustainability features and master data management capabilities.
These developments have turned Business Central into a far more powerful solution than it was in 2020. Microsoft’s pricing update reflects the increased investment in product innovation and the growing strategic importance of Business Central for digital transformation.
How Can Businesses Navigate Price Rises?
While the increases are relatively modest, they are a timely reminder to review your Microsoft licensing strategy.
There are a number of practical steps organisations can take to manage the cost changes and maximise value from their licensing:
- Audit Your Licences
Take stock of how many licences are currently in use - and more importantly, how many are actively used. Identifying under-utilised or inactive licences is a quick way to reduce unnecessary spend.
- Review User Roles
With different licence tiers available (Essentials vs Premium), businesses should reassess whether all users need the functionality included in their current licence. Many organisations find that users can be reallocated to more cost-effective licences without impacting productivity.
- Consolidate Systems
The price increase is an opportunity to consider broader business transformation. If your organisation still relies on multiple siloed systems( for finance, CRM, inventory and project management etc.), consolidating into Business Central could actually result in reduced costs overall, not to mention less complexity.
- Engage Your Partner
Working with a trusted Microsoft partner—like Akita—ensures you’re on the most efficient licensing model. Partners can provide guidance, help with renewals, and offer proactive support to optimise your technology investment.
- Plan Ahead
If your renewal is due after October 2025, use the time now to prepare. Map out the potential cost increase, explore options for cost containment, and ensure stakeholders understand the business case behind Business Central’s continued use. Akita can support you with this through our licensing services.
Business Central Licensing Price Rise: Mixed Blessings?
Microsoft’s price rise for Business Central reflects the evolution of the platform into a smarter, more capable ERP solution.
While the increases will affect licensing costs, they also come with enhanced functionality and greater business value. With careful planning, businesses can navigate the changes, mitigate impact, and continue to benefit from the innovation that Business Central brings.
Need help understanding how this affects your organisation or how to maximise what you have? Akita’s experts are here to support your ERP strategy:
