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Microsoft Dynamics 365 Business Central Pricing Update: What You Need to Know

Posted September 03, 2025

Microsoft recently announced the first price adjustment for Dynamics 365 Business Central in over five years, effective October 1, 2025. As your trusted Business Central partner, we want to help you understand these changes and prepare your organization for a smooth transition.

What’s Changing?

Here’s a breakdown of the new pricing structure. Please note that all dollars listed below are in USD; Canadian rates have not been released yet. As soon as Microsoft releases its new Canadian rates, we will let you know.

License Type	Current Price	New Price (Oct 1, 2025)	Storage Increase
Essentials	$70/user/month	$80/user/month	2GB → 3GB
Premium	$100/user/month	$110/user/month	3GB → 5GB
Device	$40/user/month	$45/user/month	1GB → 1.5GB

Microsoft has also increased the storage entitlements with each license tier, providing additional value alongside the price adjustment.

The updated prices will apply to new subscriptions purchased on or after October 1, 2025 and to existing subscriptions at your first renewal date.

Note: Licenses purchased on the Microsoft promotional rate are locked in for the 3-year term and are not subject to this change during that period.

Why Is Microsoft adjusting pricing?

Microsoft’s rationale for this price increase reflects the substantial value they’ve added to Business Central over the past five years. Since the last pricing update, they’ve delivered hundreds of new features across finance, analytics, supply chain, and manufacturing capabilities.

Key enhancements that justify this investment include:

AI-powered innovation

Microsoft Copilot integration for day-to-day assistance
AI-powered financial analysis and account reconciliation
Intelligent automation that reduces manual tasks

Enhanced analytics & integration

Deeper financial and manufacturing analytics capabilities
Better interoperability with Microsoft Power Platform
Improved reporting and business intelligence tools

Expanded Functionality

Dedicated sustainability module for ESG reporting
Master data management capabilities
Stronger localization features for global businesses

How this affects your business

If your Business Central subscription renews before October 1, 2025, you’ll maintain current pricing for the duration of your term. Organizations renewing after this date will transition to the new pricing structure.

This presents an opportunity to evaluate your current licensing strategy and ensure you’re optimized for both functionality and cost-effectiveness.

Our recommendation: Take action now

As your Business Central partner, we recommend taking these proactive steps:

Review your renewal timeline: Check when your subscription comes up for renewal. If it’s before October 1st, you have time to plan without immediate impact.
Assess your license mix: Now is an ideal time to evaluate whether your current Essentials, Premium, and Device licenses align with how your team actually uses Business Central. We can help identify opportunities to optimize your license allocation.
Explore the new AI features: The Copilot capabilities that are driving this price increase offer significant productivity gains. We can demonstrate how these AI-powered features can streamline your workflows and potentially offset the cost increase through improved efficiency.
Plan for growth: If you’ve been considering expanding your Business Central user base or adding new modules, the timing of this announcement creates planning opportunities we can help you navigate.

How Joesoftware can help

We’re here to guide you through this transition and ensure you continue getting maximum value from your Business Central investment. Our team can:

Conduct a comprehensive license review to optimize your subscription mix

Demonstrate the new AI features and help you implement them effectively

Assist with timing strategies if you’re planning system expansions

Provide training to help your team leverage the enhanced capabilities

With the right planning and optimization, you can navigate this change while positioning your organization to take full advantage of the platform’s expanded capabilities.