Microsoft Dynamics AX 2009 Licensing Changes FAQ

Microsoft Dynamics AX 2009 licensing changes FAQ

Microsoft Dynamics AX 2009 licensing changes FAQ:

The purpose of this document is to guide the field Microsoft Dynamics AX partners in answering the most frequently asked questions with respect to the licensing of Microsoft Dynamics AX 2009. Primary focus is the changes brought about by the Microsoft Dynamics Client for Microsoft Office (DCO) and Microsoft Dynamics External Connector. The following links will also provide additional information around Microsoft Dynamics AX 2009 pricing, licensing and launch related activities:

 What’s new in Microsoft Dynamics AX 2009 pricing & licensing

 Price list supplement on Partner Source Pricing Page (released March 1, 2008) ( https://mbs.microsoft.com/partnersource/pricing/pricesheets/axpricesheet.htm?printpage=false

 Internal readiness resources: http://infoweb2007/microsoftdynamics/dynamics_launch_portal/AX2009/Pages/InternalReadiness. aspx

 Partner readiness resources: http://infoweb2007/microsoftdynamics/dynamics_launch_portal/AX2009/Pages/PartnerReadiness. aspx

Microsoft Dynamics Client for Microsoft Office and the External Connector This section outlines the pricing and licensing changes made around the Microsoft Dynamics Client for Office (DCO) and External Connector as it relates to Microsoft Dynamics AX2009. For more information on the DCO in general, please go to the following Partner Source link: https://mbs.microsoft.com/partnersource/newsevents/news/newsgeneral/microsoftdynamicsclientoffices harepoint.htm?printpage=false

In terms of access to Microsoft Dynamics AX2009 by means other than the rich client of a mobile device (where another license type exists), a DCO and/or External Connector must be licensed. What are the primary drivers for moving from the traditional concurrent Web user model to the current named user DCO model in Microsoft Dynamics AX 2009?

1) Licensing simplicity: We have heard that is it difficult to predict concurrent “peak” usage, as well as the need for predicting unique data views (requiring a separate Business Connectors for each view) hence we have created the DCO user that includes a Business Connector for each user. In addition, we have added the Enterprise Portal Framework into the Business Essentials/Advanced Management Foundation Pack. 2) Consistent licensing: The majority of ERP vendors today use a named user model for licensing of Web users (for example, SAP, Oracle, Lawson, IFS). A named user licensing model provides advantages by being aligned to other Microsoft products often licensed in conjunction with the DCO, such as SharePoint, Microsoft SQL Server, and Microsoft Office SharePoint server. This consistency makes it easier to license Microsoft Dynamics AX DCO users along with other elements of the Microsoft stack.

Microsoft partner confidential. Do not distribute to Microsoft Dynamics customers. May 2008 P a g e 1 Microsoft Dynamics AX 2009 licensing changes FAQ

3) Competitive: DCO pricing of $195/named user is very competitive when compared with products such as those offered SAP, Oracle and Epicor). With DCO customers do not have any access restrictions and will furthermore get access to a financial reporting solution (FRx). 4) Eases licensing compliance issues: with named usage, it is less likely that the customer will be under- licensed or face licensing issues.

The move to DCO named users from concurrent Web users has caused some deals to become more expensive. Does the DCO constitute a price increase?

As per above, in some cases the DCO option may prove to be more expensive than the concurrent Web user option. However, based on historical data and sales to date, a significant majority of AX customers purchasing DCO saved license costs versus what they would have had to pay for concurrent Web users/Enterprise Portal/Business Connectors to fulfill the same needs. DCO pricing is considered to be competitive versus similar offerings from vendors such as SAP and Oracle (who also license on a named user basis) and should be positioned as such, rather than compared to our former pricing model.

Per above there may be instances where customers with a high number of named “casual” users may see DCO as more expensive than the concurrent user option this impact was included in the research and per above DCO is considered to be competitive against key competitors. In cases where a special discount is sought we encourage you to leverage the empowerment guidelines. Note that an increased price from concurrency to named users is in itself not justification for a discount.

The External Connector is new on the Microsoft Dynamics AX 2009 price list. Does this constitute a price increase?

As with the DCO, the External Connector was added to the Microsoft Dynamics AX 2009 price list in order to simplify licensing, ensure licensing compliance and provide consistent licensing. Instead of having to purchase different components depending on how or what third party access to Microsoft AX takes place, the External Connector covers all third party access scenarios save Business Process Outsourcing, which is prohibited by the Software License Terms (SLT).

The External Connector does not constitute a price increase for a significant majority of customers. Any external access (i.e. access by users not employed or retained by the customer organization), including via Web Services, application to application integration, external users such as customers or vendors and so on- is covered by a basic modular fee. Unlike in Microsoft Dynamics AX4, additional Web users/Business Connectors do not need to be licensed if usage/unique data access needs increase.

In addition, the minimum Microsoft Dynamics AX4 configuration that is needed to match what is provided by the External Connector in Microsoft Dynamics AX 2009 costs roughly the same. As soon as a Microsoft Dynamics AX4 customer needs more Web Users or Business Connectors than the minimum requirements, the license cost exceeds that of the External Connector. A key benefit of the External Connector is that the number of external Web users and Business Connectors is not licensed separately- this is covered by the modular fee for the External Connector.

I have a customer that wants to integrate with a third party application, integrate with external Web Services and allow vendors to view order/inventory information via the Web. Do I have to license a separate External Connector for each of these scenarios?

No. Only one External Connector needs to be licensed per Microsoft Dynamics AX license (system database). The External Connector will cover each of the scenarios described above (provided that the scenario does not include Business Process Outsourcing.

What exactly is included in the DCO for Microsoft Dynamics AX?

The main feature of DCO is that it is a license that grants access to dynamics via other means than the “Windows” Client and the Mobile Client. However, besides the access rights, the following functionality is included in the DCO for Microsoft Dynamics AX:

 Enterprise Portal Framework

 One Microsoft Dynamics AX Business Connector per named user

 One Enterprise Portal Web user per named user

 One Microsoft Frx Drill Down Viewer and one Microsoft FRx WebPort user

 Employee Role

Together, these products provide web- and Microsoft Office-based access to Microsoft Dynamics AX data. In addition to these products that are available, DCO provides a license for access to Microsoft Dynamics AX data via any other Office Business Applications (or other access) that the customer builds. With DCO, your customers can extend the power, insights and process control of their ERP applications to all their employees at a compelling price, and via a user experience that is familiar and easy to use - all at a fraction of the price of a Microsoft Dynamics AX Windows client user.

What is the difference between DCO for Windows SharePoint Services (WSS) and DCO for Microsoft Office SharePoint Server (MOSS)?

In simple terms, the DCO-MOSS version includes the Microsoft Office SharePoint Server and either a Standard MOSS CAL or Enterprise MOSS CAL per named user while the DCO WSS version does not. Otherwise the two versions also contain all of the functionality outlined in the question above.

Please note that one cannot have DCO-WSS version and DCO-MOSS version named users on the same license.

How is DCO different from Microsoft and SAP’s “Duet” initiative?

Duet™ for Microsoft Office® and SAP is the result of collaboration between Microsoft Corporation and SAP AG. It is the first joint product developed and supported by both companies. With Microsoft’s knowledge of productivity applications and SAP’s expertise in enterprise applications, the two companies have developed a solution that enables seamless access to SAP business processes and data via Microsoft Office,

revolutionizing how information workers interact with enterprise applications. The current releases of Duet (Duet V1 and Duet Value Pack) include out-of-the-box scenarios for: Time management; Budget monitoring; Organization management; Leave management; Reporting and analytics; Travel management; Sales management; and Demand planning.

Microsoft Dynamics Client for Microsoft Office follows a similar approach to Duet, in that it is focused on providing a broad set of information workers with access to their business applications, via familiar, easy- to-use Microsoft Office productivity tools.

Microsoft Dynamics Client for Office includes a named user license that allows general access to Microsoft Dynamics AX information from Microsoft Office or SharePoint technologies. This provides Microsoft Dynamics AX customers with a highly extensible solution that can be customized for specific industries or to reflect specific customer needs, and also provides a platform on which customers or partners can build their own applications.

Microsoft Dynamics Client for Microsoft Office also includes Portals, Microsoft FRx reporting tools, Microsoft Dynamics Snap pre-built applications and Microsoft Office SharePoint Server 2007. Together, these provide employees with a powerful set of self-service functionality, as well as the platform capabilities to extend and build on this functionality to reflect industry or business-specific requirements.

How does this fit with Microsoft’s Office Business Applications (OBA) initiative?

Office Business Applications (OBAs) are an emerging class of business applications that connect existing line of business systems such as ERP and SCM to Microsoft Office. This new license provides an excellent way for Microsoft Dynamics AX customers to start benefitting from OBAs, as the major components, such as Microsoft Office SharePoint Server 2007, access to the Microsoft Dynamics AX, and integration with Office client products, are all available. Microsoft Dynamics Snap is a great example of OBAs that have been built specifically for Microsoft Dynamics AX.

What are the partner benefits of this new license? How can they get this?

Partners can benefit from the new license in a number of ways. First, it provides them with a great revenue opportunity, as it provides a compelling new package of functionality that is applicable to all employees, and at a price point that is very competitive with offerings from other vendors. Second, it helps partners to position Microsoft Dynamics as a leading player in the new category of office business applications, and to have a strong response to competitors such as SAP (with Duet) and Epicor (Information Worker). Third, it provides a platform on which partners can develop their own industry or customer-specific office business applications, and gives them the ability to license these more broadly throughout the company, without requiring either the Microsoft Dynamics full access user license to be installed or having to purchase separate business connectors.

Why are DCO named users? Why aren’t they licensed concurrently like the BRL users and Web users are in AX4?

DCO users are named as the DCO is linked to Windows SharePoint Services (WSS) and Microsoft Office SharePoint Server (MOSS). WSS/MOSS users are named and as such DCO users are named (for more information on WSS vs. MOSS and what is included with DCO, please go to https://mbs.microsoft.com/partnersource/newsevents/news/newsgeneral/microsoftdynamicsclientoffices harepoint.htm?printpage=false . In addition, each DCO requires a Microsoft SQL Server Client Access License (SQL CAL), which is also licensed on a named user basis (note that customers with a SQL Server Full Use/Processor license do not need to buy additional SQL CAL).

When would I license the External Connector versus the DCO?

The DCO is used for users employed or retained by the customer organization (employees, salespeople or consultants). If these users are accessing Microsoft Dynamics AX via any means other than the “ Windows client” or a Mobile Client (directly or through a staging server, Web Service or other application) then a DCO is required for each named user.

The External Connector is used when the users accessing Microsoft Dynamics AX are not employed by the customer organization but still need access to the customer’s Microsoft Dynamics AX database. Examples of this user type include a customer’s customers and vendors. In addition, application to application integration or use of Web Services (with no employee users involved) are also covered by the External Connector. Please note that as per the Software License Terms (SLT), the External Connector cannot be used for Business Process Outsourcing (BPO) purposes.

Do I have to license DCO in addition to the External Connector for external users?

No. As long as the users are external to the customer organization, no separate user licenses are needed.

Do I have to license DCO if I already have the External Connector and I have employee users accessing Microsoft Dynamics AX indirectly, for example through a third party application, staging server or a Web Service?

Yes. Any employee users accessing Microsoft Dynamics AX data, directly or indirectly, must license a DCO for each named user. Note that Mobile Client named users can be substituted for DCO users if access to Microsoft Dynamics AX is via a mobile device. For further details, please refer to the section on multiplexing in the Software License Terms. In summary, pooling of user access to Microsoft Dynamics AX via an external application, server or Web Service does not reduce the requirement to license each employee user with a DCO per named user.

Are the Customer and Vendor Roles included with the External Connector?

No. The customer and vendor roles continue to be licensed separately in Microsoft Dynamics AX 2009.

The Employee Role is included with the DCO. Are the Salesperson Role and Consultant Role also included?

No. The salesperson and consultant roles continue to be licensed separately in Microsoft Dynamics AX 2009.

What type of scenarios would be useful for licensing DCO versus a full (rich client) user?

The most common scenarios are likely to occur when employees need limited access to the information in Microsoft Dynamics AX or are involved as a one-off participant in a process, rather than being the primary owner of that process. In both cases, the employee does not necessarily need the powerful functionality that the full client user license provides, but they would benefit from having limited access.

For example, an accounts payable manager needs the full client user license to input invoices, to match them against purchase orders and goods received notes, and to approve them for payment. However, a marketing manager who has requested a service (e.g. design for a new brochure) and has to approve the invoice when it arrives, only needs visibility into the details of the invoice (to confirm the price and delivery of the service), and this could be delivered via a Microsoft SharePoint site.

Another example could be a sales manager who needs a breakdown of sales of a particular product over the last four quarters as input into his revenue forecast for the next two quarters. Ideally, this manager would use a tool such as Microsoft Office Excel to view this data directly, rather than either requiring a full client user license, or having to ask a finance professional to retrieve the information.

Changes in packaging In Microsoft Dynamics AX 2009 the Role Center is being introduced. Is the Role Center available for Business Essentials customers?

One of the primary usability enhancements in Microsoft Dynamics AX 2009 is the introduction of a Role Tailored Client (also referred to as Role Centers). The Role Centers displayed in the regular AX “Windows” client are powered by SharePoint technology. Rather than develop a separate portal for the Role Centers, it was decided to leverage the existing Enterprise Portal Framework in Microsoft Dynamics AX. As some of the Role Centers utilize modules found in the Business Essentials Edition, it was decided that the Enterprise Portal Framework be included with the Business Essentials Foundation Pack in Microsoft Dynamics AX 2009. As a result, Business Essentials customers can also benefit from Role Centers in Microsoft Dynamics AX 2009 (note that the role centers can only be used from the “Windows” client in Business Essentials).

Please note that use of the Enterprise Portal Framework for purposes other than enabling the Role Centers requires a Microsoft Dynamics Client for Microsoft Office (DCO) per named user and/or an External Connector; these items are not available to Business Essentials customers (see next question).

With the Enterprise Portal available in Business Essentials, does this mean that the DCO is now available for Business Essentials customers?

No. The Enterprise Portal Framework was placed into Business Essentials in order to facilitate use of the Role Centers and SQL Reporting Services. Use of the Enterprise Portal for other purposes requires that DCO and/or External Connector be licensed- and one must license the Advanced Management Edition to order DCO/External Connector.

With these changes, the Enterprise Portal is no longer available as a stand-alone license. Why was this change made?

With the introduction of Microsoft Dynamics AX 2009, we want to encourage our customers to extend the power, insight and process control of their business management solution to all their employees, helping increase individual productivity and drive business success. We do this through encouraging them to access Microsoft Dynamics AX through variety of Microsoft Office and web-based user interfaces, including Office Outlook, Office Word, Office Excel, and SharePoint, via a wider-ranging access license that is provided with Microsoft Dynamics Client for Microsoft Office, rather than the more limited license provided under the old Enterprise Portal concurrent license.

In Microsoft Dynamics AX 2009 self service Business Intelligence (BI) is offered to users out-of-the-box. This makes BI very accessible to users. Is this only available for Advanced Management customers?

In conjunction with the introduction of a Role-Tailored Client (Role Centers) in Microsoft Dynamics AX 2009, a series of Key Performance Indicators (KPI) will displayed with each Role Center. These KPI are generated using Microsoft SQL Server Reporting Services (SRS) and the Business Analysis/OLAP module. As several of the Role Centers use modules in the Business Essentials Edition, it was decided to move the Business Analysis/OLAP functionality from Advanced Management to Business Essentials. This allows Business Essentials customers to also benefit from the KPI data available in AX.

Why is the Application Integration Framework moving from Advanced Management Enterprise into the Business Essentials Edition?

There are an increasing number of markets where electronic document exchange with the public sector (for example sales tax, value-added tax or goods & services tax reporting) is the most common means of meeting local regulatory requirements. To ensure that our Business Essentials customers are also able to meet local regulatory requirements in this manner, AIF was moved to the Business Essentials Edition.

Please note that use of the Application Integration Framework for purposes other than meeting local regulatory requirements by exchanging electronic documents with the public sector requires a Microsoft Dynamics Client for Microsoft Office per named user and/or an External Connector; these items are not available to Business Essentials customers (see next question)..

With the Application Integration Framework available in Business Essentials, does this mean that the DCO is now available for Business Essentials customers?

No. The Application Integration Framework was placed into Business Essentials in order to facilitate electronic document exchange with the public sector. Use of the Application Integration Framework for other purposes requires that DCO and/or External Connector be licensed- and one must license the Advanced Management Edition to order DCO/External Connector.

The Business Connector is no longer on the Business Ready Licensing price list for Microsoft Dynamics AX 2009. Is this SKU discontinued?

The Business Connector functionality has not been discontinued in Microsoft Dynamics AX 2009; it has been repackaged. One Business Connector has been included in the Business Essentials and Advanced Management Foundation Packs to facilitate the use of the Role Centers as well as the development of

reports using Microsoft Visual Studio and execution of these reports using Microsoft SQL Server Reporting Services (SRS).

Use of the Business Connector for any other purpose is licensed through the Microsoft Dynamics Client for Microsoft Office (one Business Connector is included with each named user) or the External Connector.

Please see the “Existing Customers” section for more details on how existing customers will be impacted by this change when they upgrade to Microsoft Dynamics AX 2009.

Why is the Application Integration Framework Web Services Extension (Web Services) SKU being moved from Advanced Management Enterprise into the Advanced Management Edition in Microsoft Dynamics AX 2009?

The Web Services SKU is being moved to Advanced Management as a means of simplifying pricing and licensing access to Microsoft Dynamics AX for all those information workers who do not require the full client access license of the Mobile Client license. This will make us more competitive in the marketplace, by adding more value to the Foundation Pack without raising the price.

The new Expense Management module is included in Advanced Management, yet in order to use it I need to license a Microsoft Dynamics Client for Microsoft Office for each named user. Why do I have to purchase separate user licenses in order to use a feature that is included in the Advanced Management Edition?

While the base Expense Management functionality is included in the Advanced Management Edition, access to that functionality will require a separate Microsoft Dynamics Client for Microsoft Office license. Expense entry is performed exclusively through the SharePoint-based Enterprise Portal. Expense administration and expense approvals are performed within the rich client user environment. In Microsoft Dynamics AX 2009, the SharePoint-based Enterprise Portal is incorporated into Microsoft Dynamics Client for Microsoft Office - hence the need for a named Microsoft Dynamics Client for Microsoft Office user for each user entering their expense information into Microsoft Dynamics AX 2009.

Existing customers I have existing customers with Enterprise Portal Web Users in Microsoft Dynamics AX4 upgrading to Microsoft Dynamics AX 2009. How do they purchase additional Web Users in Microsoft Dynamics AX 2009 when they are no longer on the BRL price list?

For BRL customers on Microsoft Dynamics AX 2009, all Enterprise Portal Web users will be replaced by the Microsoft Dynamics Client for Microsoft Office. Existing customers with Enterprise Portal Web Users on their license will have these replaced by DCO named users in Microsoft Dynamics AX 2009 and can purchase additional DCO licenses as required.

How many DCO will customers receive for each Enterprise Portal Web User licensed?

The upgrade rule in place is that customers will receive three (3) DCO named users (Windows SharePoint Services version) for each concurrent Enterprise Portal Web User licensed.

I have existing Microsoft Dynamics AX4 customers with AIF on their license so that they can integrate with third party applications/Web Services/external users. When they upgrade to Microsoft Dynamics AX 2009 do they have to license the External Connector as well?

These customers will receive the External Connector on upgrade at no additional charge (is a Business Ready Enhancement Plan benefit). Existing customers that have licensed any of the following will receive the External Connector at no charge when upgrading from Microsoft Dynamics AX4 to Microsoft Dynamics AX 2009:

 Application Integration Framework

 Enterprise Portal Framework + Customer Role

 Enterprise Portal Framework + Vendor Role

If my existing customers get three DCO per Web User and/or an External Connector when they upgrade, then the license value will change. Will this impact their Business Ready Enhancement Plan (BREP) payments?

No. The Protected List Price used to calculate the annual BREP payment will not change. https://mbs.microsoft.com/customersource/productsservices/service/enhancement/plppolicies.htm

I have existing Business Essentials customers with Business Connector licenses in Microsoft Dynamics AX4; they can’t purchase DCO and Business Connectors are not available on the Microsoft Dynamics AX 2009 BRL price list. What happens to these customers when they upgrade?

Existing Business Essentials customers with Business Connectors on their Microsoft Dynamics AX4 license will receive an equivalent number of Business Connectors on their Microsoft Dynamics AX 2009 license (processed on a case by case basis).

Ordering issues If I want to license a new customer (order a new Foundation Pack), which price list can I use?

New Foundation Pack orders must be made from the price list for the current version. In markets where Microsoft AX 2009 has been released, all new orders must be made from the Microsoft Dynamics AX 2009 price list. In markets where Microsoft AX 2009 has not been released, orders for new Foundation Packs can be made from the Microsoft Dynamics AX4 price list.

Microsoft Dynamics AX 2009 has been released in my country/region, but my new customer would like to implement Microsoft Dynamics AX4. How do I manage this?

When placing an order, use the Microsoft Dynamics AX 2009 price list. At the same time, request an AX4 code letter and Microsoft Dynamics AX4-comptaible license codes will be provided to you.

I would like to order one or more of the Industry Solutions, but these solutions are not available on Microsoft Dynamics AX 2009 price list until at least September 2009. And I can’t order new customer

licenses using the Microsoft Dynamics AX4 price list as Microsoft Dynamics AX 2009 has been released in my country. What do I do?

MBS - IBIModuleOrdering_WithGA of AX2009_PartnerReady_6-9-2008_Final.docx Please consult this separate Q&A document on this issue:

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