Price changes for Microsoft Dynamics Business Central On-Premises products starting October 2025
Share:
Microsoft has announced that it will adjust the prices for Dynamics On-Premises products as of October 1, 2025. This primarily affects maintenance contracts (Enhancement Plan and Advantage Plan), but also base prices and conversion factors in the regions.
As in the past, Microsoft is pursuing two goals with this move:
- to simplify the pricing structure
- and at the same time to encourage companies to move more toward the cloud.
1. Service plans increase by one percentage point
The Enhancement Plan (EP) and Advantage Plan (AP) are Microsoft's maintenance agreements for on-premises licenses. Companies pay a percentage of the license list price (PLP) and receive updates, hotfixes, support, and new features in return.
Starting October 6, 2025, fees for new contracts will increase by one percentage point. For existing contracts, the price change will only take effect upon the next renewal. Multi-year plans will retain the previous percentage for the currently agreed term, but may not be terminated early.
Examples:
- The prices for the Enhancement Plan with a term of 1 year will increase from 19% to 20% of the Protected List Price (PLP).
- The prices for the Advantage Plan with a term of 1 year will increase from 21% to 22% of the PLP.
- The prices for the Enhancement Plan with a term of 3 years will increase from 57% to 60% of the PLP.
Note: PLP stands for Protected List Price, which is the basis for calculating maintenance fees.
2. Base prices increase significantly
In addition to the prices for service plans, Microsoft will also adjust the base prices for on-premises products starting in October 2025.
- Perpetual licenses (Business Central, NAV): One-time purchase licenses will increase in price by around 10%. This primarily affects common license types such as Business Central Essentials, Business Central Premium, and Team Members.
- Subscriptions (Business Central, NAV): Prices will also increase here – between 10% and 14%, depending on the license. This will make ongoing subscriptions noticeably more expensive.
- Elimination of the “On Azure” discount: Previously, there was a 5% discount for customers who ran their on-premises systems on Microsoft Azure. This discount will be completely eliminated in the future.
- Elimination of historical special prices (“overrides”): A few, mostly older or rarely used licenses previously had different special prices. These exceptions will be eliminated, resulting in a more uniform pricing structure in the future.
For most customers, this means that costs will increase significantly in some cases, both for new purchases of on-premises licenses (Essentials, Premium, Team Members) and for ongoing subscriptions.
3. New conversion factors
Microsoft sets its prices worldwide in US dollars. To ensure that these prices are valid in other regions such as Europe, Asia, or Switzerland, they are converted into the respective local currency using conversion factors.
These factors will be adjusted starting October 1, 2025. Microsoft will take the following into account:
- current exchange rates between the US dollar and local currencies,
- price targets in individual markets (e.g., purchasing power, competitiveness),
- and a uniform pricing logic across different product lines.
For customers, this means that in addition to general price increases, there may be further price changes depending on the region – either upward or downward.
Overview of the most important price changes from Microsoft
Microsoft license price changes effective October 1, 2025
| product | Price until 09/30/25 | Price from Oct 1, 2025 | Note |
|---|---|---|---|
| Perpetual licenses (BC, NAV) | + 10 % | Essentials, Premium, Teams Members | |
| Subscriptions (BC, NAV) | + 10-14 % | Depending on the license | |
| “On Azure” discount | - 5 % | not applicable | Discount no longer applies |
| Price overrides | occasionally | not applicable | only a few licenses affected |
| Regional conversion factors | variable | adjusted | depending on region and exchange rates |
Microsoft license price changes effective October 6, 2025
| product | Price until 10/05/25 | Price as of 10/06/25 | Note |
|---|---|---|---|
| Enhancement Plan (1-year term) | 19 % PLP | 20 % PLP | + 1 percentage point |
| Advantage Plan (1-year term) | 21 % PLP | 22 % PLP | + 1 percentage point |
| Enhancement Plan (3-year term) | 57 % | 60 % | no early termination |
What does that mean for you?
For companies with on-premises licenses, this means that you can expect significant price increases starting in October. Therefore, you should check early on what impact this will have on your existing contracts.
Tip: Now is a particularly good time to consider switching to the cloud version of Dynamics 365 Business Central. Check the requirements for the Bridge to the Cloud 3 promotion.
We would be happy to advise you!
