Dynamics 365 User vs. Device Licensing
- Dynamics 365 User vs. Device Licensing:
- User License: One license per user, multiple devices.
- Device License: One license per shared device, used by multiple users.
- Best for User License: Individuals needing flexibility across devices.
- Best for Device License: Situations with shared workstations, like retail or manufacturing.
Dynamics 365 User vs. Device Licensing Overview
Microsoft Dynamics 365 offers different licensing options to suit various business needs. One common decision businesses need to make is whether to go with User Licensing or Device Licensing.
Understanding the difference between the two is crucial to ensuring you make the right choice, as each model is tailored to different operational needs and scenarios.
What is Dynamics 365 User Licensing?
User Licensing in Dynamics 365 is a model where each license is assigned to an individual user. This type of licensing grants the licensed user access to Dynamics 365 from any device.
It is ideal for businesses where employees need flexibility in accessing systems.
Benefits of User Licensing:
- Flexibility: Users can log in from any device, whether it’s a laptop, tablet, or smartphone. This is ideal for remote or hybrid work setups.
- Multi-Device Access: If your employees use more than one device throughout the day—such as a desktop in the office and a tablet at home—user licensing allows seamless access without additional costs.
- Personalized Experience: Each user gets a personalized experience, which means settings, dashboards, and workflows are consistent regardless of the device.
Example Scenario:
Imagine a sales representative who frequently travels and needs to access Dynamics 365 from various locations—at the office, from their mobile phone while visiting clients, and from a laptop at home. User licensing ensures that they can log in seamlessly from any of these devices with their own personalized settings and information ready to go.
What is Dynamics 365 Device Licensing?
Device Licensing is a model where the license is tied to a specific device, rather than a user. Multiple users can share the same licensed device, but each user must access the application from that particular device.
Benefits of Device Licensing:
- Cost-Effective for Shared Environments: In environments such as warehouses, retail stores, or healthcare facilities, where multiple employees may need to use a single device, device licensing can be more economical.
- Simplified Management: Rather than tracking licenses for individual users, businesses can simply license each device.
Example Scenario:
Consider a retail store where employees share a point-of-sale (POS) terminal. In this situation, device licensing is ideal, as it allows any employee to use the POS system without needing an individual license.
Key Differences: User vs. Device Licensing
To determine which licensing model is better for your organization, it’s important to evaluate the differences between user and device licensing.
1. Access Flexibility
- User Licensing: Each user can access Dynamics 365 from any device. This flexibility is especially important for businesses where employees work remotely or switch between devices regularly.
- Device Licensing: Access is tied to a specific device. This model is more suited for shared-device environments where several users access the system using a single, fixed terminal.
2. Cost Considerations
- User Licensing: Costs can increase as the number of employees grows since each user requires a separate license. However, the flexibility of being able to use multiple devices can justify the cost for organizations where employees are often mobile.
- Device Licensing: In scenarios where multiple users share a device, device licensing can be a more cost-effective solution. Rather than licensing every individual user, only the device is licensed, reducing overall costs.
Example: If you have a team of 10 sales representatives, each with their own devices, user licensing is the better option. However, if you have 20 part-time employees who use five shared workstations, device licensing can significantly reduce expenses.
How to Choose Between User and Device Licensing?
Selecting between User Licensing and Device Licensing requires evaluating how your organization operates, how your employees interact with Dynamics 365, and what makes the most financial sense. Here are some factors to consider:
Employee Mobility and Work Style
- If your team members are mobile, work remotely, or use multiple devices during the day, user licensing is the best fit.
- If employees are stationary and share devices, such as in a call center or front desk, device licensing will be more cost-effective.
Example: A consulting firm with employees who often work on client sites will benefit more from user licensing, as it provides each consultant with the ability to work from multiple locations. On the other hand, a medical reception desk shared by several part-time staff can save costs with device licensing.
Budget and Cost Efficiency
- Assess the total number of employees versus the total number of devices. If you have more devices than users, user licensing may not be cost-effective.
- Device licensing is typically less expensive in shared environments where the number of users exceeds the number of devices.
Specific Use Cases
- Call Centers: In a call center, where multiple agents may use the same workstation, device licensing is the better option.
- Sales Teams: If your sales team members each have their own device, user licensing is more appropriate.
Scenarios Where User Licensing Outweighs Device Licensing
There are specific situations where user licensing offers more benefits compared to device licensing:
- Field Operations Teams: Employees in the field, such as logistics teams using mobile devices for tracking deliveries, will benefit more from user licenses, as they need access across multiple devices throughout the day.
- Flexible Work Environments: Companies that encourage work-from-home or have hot-desking policies will also prefer user licensing, as it provides each employee access from any location.
Example: In a construction company where supervisors must access Dynamics 365 from their laptops, tablets, and phones while on different job sites, user licensing is crucial to maintain productivity and flexibility.
When Device Licensing Is More Beneficial
- Retail Stores: Employees working in shifts who use shared POS terminals.
- Healthcare Facilities: Nurses or reception staff that share check-in stations to access patient information.
- Libraries or Public Workstations: Device licensing can be more practical where public access is available through shared terminals.
Example: In a public library, device licensing allows any visitor or staff member to access a specific workstation without needing individual licenses, making it a cost-effective solution.
Dynamics 365 User vs. Device Licensing FAQ
What is Dynamics 365 user licensing?
User licensing allows one user to access Dynamics 365 from multiple devices.
What is Dynamics 365 device licensing?
Device licensing allows multiple users to access Dynamics 365 from a single device.
When should I choose user licensing?
Choose user licensing when individuals need access from multiple devices.
When should I choose device licensing?
Device licensing is ideal for shared devices used by multiple users.
Can I switch from device to user licensing?
You can change licensing types, but contact Microsoft support for assistance.
Are user licenses more expensive than device licenses?
User licenses may be pricier but offer greater flexibility.
How do I assign a user license in Dynamics 365?
Go to the admin center and assign the user license to the appropriate account.
Can I mix user and device licenses in my organization?
You can use both licensing types based on your organization’s needs.
What’s the key difference between user and device licenses?
User licenses cover individuals, while device licenses cover shared devices.
Which industries benefit most from device licensing?
Industries like retail and manufacturing that use shared devices benefit most from licensing.
Is there a limit to the number of devices with user licensing?
No, user licensing provides access across unlimited devices.
Can multiple users access Dynamics 365 at the same time with device licensing?
Yes, as long as they are using the same licensed device.
Do user and device licenses offer the same features?
Yes, both licenses offer identical features, with access depending on the type.
Which licensing option is more cost-effective for large teams?
Device licensing may be more affordable for teams sharing devices.
How do I manage licensing in Dynamics 365?
Use the admin portal to manage both user and device licenses.
