5 Ways CAL Customers can Save Money - CAL Business Solutions

(Note: This post was revised 9/20/2012 with corrected pricing information and again on 12/17/2012)

New pricing, called Perpetual Licensing, is coming with the release Microsoft Dynamics GP 2013. (We don’t know exactly when the release will be, but rumor says December 2013.) What does this mean for our existing Microsoft Dynamics customers? In general, you do not need to worry. If you purchased your original Microsoft Dynamics GP system before October 1, 2012 anything you own (or buy before your upgrade) will be automatically mapped to the same, or superior, functionality in your version of Microsoft Dynamics 2013.

Whenever you choose to upgrade to GP 2013 you will map to the either the new “Starter Pack” or the “Extended Pack” in Dynamics 2013 depending on the modules you already own. (Review what functionality is included in Dynamics GP Starter Pack and Extended Pack.) This means you might save money by buying some functionality on the OLD price list, before upgrading to Microsoft Dynamics GP 2013. So that you can get mapped to a higher level of functionality, at no extra cost.

Originally I thought existing customers had to purchase these modules by October 1, 2012 but this is NOT correct. You can purchase modules on the old MBL or BRL price list, with no penalty, any time before your Dynamics GP 2013 upgrade (as long as it is before November 2013). The only deadline for October 1, 2012 is related to user license pricing tiers, which is explained below.

Based on calls with Microsoft and reading blog posts by other experts we have come up with a few scenarios that existing Dynamics GP customers should consider before their GP 2013 upgrade:

1) Additional Dynamics GP Users:

In Dynamics GP 2013 there will be two types of concurrent user licenses.

Full Users $3,000 each

Limited Users $600 each

There will no longer be “waterfall pricing”, meaning a lower price as you buy more users, as there was in previous versions. As a comparison, you can view current Dynamics GP pricing at Current Business Essentials user pricing and Current Advanced Management user pricing under Business Ready Licensing.

Note: Waterfall pricing, for Business Ready Licensing, ends October 1, 2012. So if you have 10+ users and want more, you could save a bit more money by buying before this deadline.

Full Users: Depending on the licensing model and number of users you already have, buying additional full users prior to October 1, 2012 could save you money OR cost you more money. For example:

Current Business Essentials customer with 10 users:

Price to add 1 user (11^th user) before Oct 1, 2012: $2,025
Price to add 1 Full user after Dynamics 2013 release: $3,000
Save $975

Current Business Essentials customer with 10 users:

Price to add 1 user (11^th user) after Oct 1, 2012 but before Dynamics GP 2013 upgrade: $2,250
Price to add 1 Full user after Dynamics 2013 release: $3,000
Save $750

Current Advanced Management customer with 8 users:

Price to add 1 user (9^th user) before Dynamics 2013 upgrade: $3,980
Price to add 1 Full user after Dynamics 2013 upgrade: $3,000
Save $0

Current Standard (Module Based Licensing) customer with 4 users:

Price to add 5 standard users (system has 10 user limit) before Dynamics 2013 upgrade: $3,750
Price to add 5 standard users after Dynamics 2013 upgrade: $15,000.
Save $11,250 (this is a 75% discount!)

So you really need to look at your specific scenario (license type, edition and number of users) to determine the most cost effective scenario. Not sure of your user count? Contact CAL Business Solutions (or your current partner) for a systems review and pricing comparison quote.

Limited Users: There will no longer by any NAMED Dynamics GP Light users. Instead, Microsoft will introduce CONCURRENT limited users, which can login and read information. (Note: concurrent is better than named since multiple users can share one license.) Anyone who owned Light users BEFORE July 11, 2012 at $195 each will get an equal number of Limited users upon their upgrade to GP 2013. But anyone who purchased Light users AFTER July 11, 2012 at $125 each (and before the GP 2013 release) will only receive 1 Limited user for every 3 Light users. (To get technical, these are called Light User – Limited Upgrade licenses) If there is an uneven number, you get an extra Limited user. So for example: 3 light users = 1 Limited User but 4 light users = 2 Limited Users. Got it? (Just to be a little more confusing…..If purchased after July 11, 2012 every 6 Employee Self Service (ESS) user = 1 Limited User and every 3 Limited Device CAL’s = 1 Limited User).

Goal: You want 5 Limited Users in GP 2013.

Least Expensive Solution: Buy the least amount of Light Users now in GP 2010 that will exchange for 5 users, which is 13 users.

Price of 13 Light users in GP 2010 will cost $1,625 (13x$125).
Price of 5 Limited users in GP 2013: $3,000. ($600×5)
Save $1,375.

2) Integration Manager: If you want to do your own integration work with Microsoft Dynamics GP you need the Integration Manager module. (If your partner does it for you, you do not need to own it). In Dynamics GP 2013 Integration Manager will be included in the Customization Pack, which also includes the current Customization Suite (eConnect, Web Services, Visual Studio and Dexterity).

Buy Integration Manager after Dynamics GP 2013 Upgrade: $10,000 as part of the Customization Pack. (plus a $5,000 credit if you purchased after October 1, 2012)
Buy Integration Manager before Dynamics 2013 upgrade: $5,000
Save $5,000

NOTE: Microsoft announced on 10/4/12 that the price of Microsoft Dynamics GP 2013 Integration Manager will be lowered to $6000. Read about it at: New Price of Microsoft Dynamics 2013 Customization Suite is Announced.

3) Extended Human Resources (HR) and Payroll: Unlimited Payroll and HR will be included for everyone in the release of Dynamics GP 2013. But if you want Extended Payroll and HR you can get it in Dynamics GP 2013 if you already own Human Resources Advanced, Payroll Advanced, PTO Manager or Benefits Self Service in prior versions.

Buy after Dynamics GP 2013 upgrade: Extended Payroll/HR $7,000
Buy Payroll for 100 employees $3,000 + PTO Manager $1,500 before Dynamics 2013 upgrade: $4,500
Save $2,500

Who needs Extended HR and Payroll? I am not sure but I THINK this is what will be included:

Human Resources Advanced: Benefit Lifecycle Manager, Certification, License and Training Manager, and Employee Health and Wellness functionality.

Payroll Advanced: Pay Policy Manager, Labor Accrual Manager, Advanced Labor Reporting, and Payroll Hours to General Ledger functionality.

4) SmartList Builder – this is a great tool for adding more functionality to the built in SmartList functionality.

Buy SmartList Builder after Dynamics GP 2013 upgrade: $2,000
Buy SmartList Builder before Dynamics 2013 upgrade: $1,950
Save $50! (Every penny counts)

5) Returns Management: This module will be included in the Extended Pack of Microsoft Dynamics GP 2013. Customers still on Dynamics GP Professional (Module Based Pricing) can buy “Available to Promise” and automatically get mapped to the extended pack in Dynamics GP 2013.

Buy Returns Management after GP 2013 upgrade: $10,000 for Extended Pack
Buy Available to Promise before Dynamics 2013 upgrade: $2,500 (and get Returns Management free at GP 2013 upgrade)
Save $7,500

Every existing Microsoft Dynamics GP customer will be getting MORE modules and functionality than they originally purchased. Many of the a la carte modules will be available to everyone, and many modules formerly only in the more expensive Advanced Management edition will be available to everyone. Read: Dynamics GP 2013 Modules Every Existing Dynamics GP User Will Receive Free

Even more good news – your Protected List Price (PLP) remains the same. So even though you will be getting more modules in Dynamics GP 2013, your annual maintenance plan cost will not change. (Unless you allow your plan to lapse, which would be a bad idea.)

All of us in the Dynamics GP community are trying hard to understand the new Perpetual Licensing pricing. Eventually, it will make life much simpler. But during this transition period it seems pretty complicated. So I can’t guarantee all the scenarios and pricing above, I explained it to my best ability. But I do hope that it inspires you to contact CAL Business Solutions at 860-485-0910 to review your current licensing to make sure you are not paying extra money later for something you know you wanted now.

This article was originally posted on the ERP Software Blog at: 5 Ways Existing Customers Can Save Money Before New Microsoft Dynamics GP 2013 Pricing Begins

By CAL Business Solutions, Microsoft Dynamics GP Partner Connecticut.