Microsoft Dynamics C5 2012

Upgrade Policy

November 2018

Contents

Dynamics C5 2012 to Dynamics C5 2016 Transition Upgrade Policy ...... 3 Dynamics C5 2012 to Dynamics NAV 2018 or Dynamics 365 Business Central on-premises Transition Upgrade Policy ...... 3 License Model Transition Upgrade ...... 4 Eligibility ...... 4 Migration ...... 4 Customer Service Policy for License Migration Transition Upgrade ...... 4 License Migration Transition Upgrade Protected List Price Policy ...... 4 License Credit Transition Upgrade ...... 5 Eligibility ...... 5 License Credit ...... 5 Applying License Credit ...... 5 Customer Service Policy for License Credit Transition Upgrade ...... 5 Credit for Remaining Value of Customer Service Plan when Transitioning ...... 6 Additional Policies ...... 6 Use and Service Plan Benefits of Old Product Line ...... 6 Downgrade Policy ...... 6 Transition Upgrade Fee ...... 6 Appendix A: LMT Upgrade conversation Table ...... 7 Appendix B: LMT Upgrade conversation Table ...... 8

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Overview

Microsoft Dynamics C5 is only available through the Subscription Licensing model for new customers. Customers wanting Dynamics C5 2016, the most current version of product, may license up to three Full users and seven Limited users by paying a quarterly subscription fee. For more information on the Dynamics C5 2016 Subscription Licensing model, please refer to the Microsoft Dynamics C5 2016 Licensing Guide.

This transition upgrade policy document describes the three upgrade paths for customers wanting to upgrade from Dynamics C5 2012 to Microsoft Dynamics C5 2016, Microsoft Dynamics NAV 2018 or Business Central on-premises, along with additional policies that may affect upgrades including but not limited to the Downgrade Policy and the Enhancement Plan Policy.

Note: Dynamics C5 2016 and Dynamics NAV 2016 are developed on a different code base than Dynamics C5 2012 (or prior). Dynamics C5 2016, Dynamics NAV 2018 and Dynamics 365 Business Central on-premises might have different functionalities than those available with Dynamics C5 2012. Customers are informed that moving to Dynamics C5 2016, Dynamics NAV 2018 or Dynamics 365 Business Central on-premises may result in a loss of functionality or in a difference of experience when using similar functionality. Microsoft also expressly declines any responsibility regarding the upgrade compatibility of a functionality offered by an Independent Software Vendor.

Dynamics C5 2012 to Dynamics C5 2016 Transition Upgrade Policy

Existing Dynamics C5 2012 customers with three or fewer users on their license may switch to Dynamics C5 2016 simply by placing an order for a Dynamics C5 2016 license and start paying the quarterly Subscription fee. Please note that no transition credit will be provided for the Dynamics C5 2012 license towards the cost of the Dynamics C5 2016 Subscription license.

Dynamics C5 2012 to Dynamics NAV 2018 or Dynamics 365 Business Central on- premises Transition Upgrade Policy

We recognize that not all customers may want or be able to transition to Dynamics C5 2016. For example, existing Dynamics C5 2012 customers licensed through Order Central have perpetual licensing rights and may therefore not want to upgrade to Subscription Licensing, a model with non-perpetual rights. Additionally, Dynamics C5 2012 customers may need more than three users which are not available under Dynamics C5 2016. So, to accommodate these scenarios, Dynamics C5 2012 customers with an active Enhancement Plan will be able to transition upgrade to Dynamics NAV 2018 or Dynamics 365 Business Central on-premises on the Perpetual Licensing model via a Transition Upgrade path dependent on when customers first acquired their upgrading Dynamics C5 license:

• License Migration Transition Upgrade (LMT Upgrade) The LMT Upgrade path is only available to customers with an active Dynamics C5 product with a first registration date prior to October 6, 2013, as indicated in PartnerSource Business Center (PBSC), regardless of when the customer chooses to upgrade. The LMT Upgrade path maps a customer’s Dynamics C5 2012 license configuration to an equivalent license configuration on Dynamics NAV 2018 or Dynamics 365 Business Central on-premises on the Perpetual Licensing model with the same number of users, except as noted below.

• License Credit Transition Upgrade (LCT Upgrade) The LCT Upgrade is the only path available to customers with an active Dynamics C5 2012 product line with a first registration date in PBSC on or after October 6, 2013 regardless of

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when the customer chooses to upgrade to Dynamics NAV 2018 or Dynamics 365 Business Central on-premises on the Perpetual Licensing model. The LCT Upgrade is conducted through a license investment credit aligned with the Microsoft Dynamics Licensing Transition Policy.

License Model Transition Upgrade

Eligibility

Dynamics C5 2012 (or prior versions) customers that are enrolled in an Enhancement Plan are eligible to upgrade to the most current version of Dynamics NAV or Dynamics 365 Business Central on-premises on the Perpetual Licensing model. The LMT Upgrade is the only transition upgrade path available to customers with a first registration date in PBSC before October 6, 2013 for their active Dynamics C5 2012 (or prior versions) product. The LMT Upgrade policy applies to these customers regardless of when they choose to upgrade.

Note: The LMT Upgrade to Dynamics NAV must be ordered through Order Central.

Migration

The Appendix A details the Dynamics NAV and the Appendix B details the Dynamics 365 Business Central on-premises mapping that Dynamics C5 2012 (or prior versions) customers will receive when migrating from Dynamics C5 2012 to Dynamics NAV or to Dynamics 365 Business Central on-premises using the LMT Upgrade path.

By choosing to upgrade, the customer acknowledges that there could be material changes impacting the use of functionality and users deployed in the ERP Solution prior to the LMT Upgrade.

Customer Service Policy for License Migration Transition Upgrade

Customers are required to be on an Enhancement Plan when the LMT Upgrade order is placed. The Enhancement Plan’s expiration date and the Protected List Price (PLP) of the Dynamics C5 2012 (or prior versions) configuration prior to the LMT Upgrade will be carried over to the Dynamics NAV or Dynamics 365 Business Central on-premises configuration as per the Protected List Price Assignment in the table above. The cost of the Enhancement Plan will not be recalculated when performing an LMT Upgrade from Dynamics C5 2012 (or prior versions) to Dynamics NAV or to Dynamics 365 Business Central on- premises. Once carried over to Dynamics NAV or to Dynamics 365 Business Central on-premises, the PLP will only change when a customer modifies their license configuration or according to the then- current Dynamics policies.

License Migration Transition Upgrade Protected List Price Policy

Customers doing an LMT Upgrade to Dynamics NAV or to Dynamics 365 Business Central on-premises are restricted from reducing the value of their PLP for thirty-six-months prior to the LMT Upgrade. This policy takes effect on October 6, 2013. PLP reductions prior to October 6, 2013, are exempt from this policy.

Before being allowed to do an LMT Upgrade, customers with reduced PLPs must repurchase any combination of users and functionality to re-establish the highest PLP in effect from October 6, 2013 to October 5, 2016 or within 36 months of the LMT Upgrade request (starting October 6, 2016).

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License Credit Transition Upgrade

Eligibility

Dynamics C5 2012 customers who are enrolled in an Enhancement Plan and who have a first registration date in PBSC on their active Dynamics C5 product on or after October 6, 2013 are eligible to upgrade to the most current version of Dynamics NAV or Dynamics 365 Business Central on-premises on the Perpetual Licensing model through the LCT Upgrade path. The LCT Upgrade is the only transition upgrade path available to these customers.

License Credit

Customers will receive a credit corresponding to their existing license investment. This credit will be equivalent to 100% of their Protected List Price for the modules and users the customer has licensed and for which they are paying Enhancement Plan fees.

Applying License Credit

In exchange for the Dynamics C5 2012 license, customers upgrading via the LCT Upgrade path can use the license credit toward the cost of a Dynamics NAV or Dynamics 365 Business Central on-premises license on the Perpetual Licensing model:

If the license credit does not equal the entirety of the licensing cost for the desired Dynamics NAV configuration (based on the Dynamics NAV pricelist effective as of the LCT Upgrade date) or for the desired Dynamics 365 Business Central on-premises (based on the Dynamics 365 Business Central on- premises pricelist effective as of the LCT Upgrade date), the customer will need to pay for the incremental license cost through their partner of record.

If the license credit exceeds the license cost of the desired Dynamics NAV or Dynamics 365 Business Central on-premises configuration, customers may apply the excess towards additional users or functionality.

However, the excess cannot be

• Refunded, or • Reserved for future licenses purchases (license credit must be applied at the time of the LCT Upgrade), or • Used towards the cost of any Enhancement Plan purchase, or • Used for purchase of products on Volume Licensing Programs.

By choosing to upgrade, the customer acknowledges that there could be material changes impacting the use of functionality and users deployed in the ERP Solution prior to the LCT Upgrade.

Customer Service Policy for License Credit Transition Upgrade

Customers are required to be on an Enhancement Plan when the LCT Upgrade order is placed and to purchase at a minimum a one-year Enhancement Plan when they execute an LCT Upgrade.

The credit for any value remaining on the current Enhancement Plan prior to the LCT Upgrade will be applied towards the cost of the new plan. The Enhancement Plan credit cannot be applied toward licenses or toward Volume Licensing Software Assurance programs. When a customer Transition Upgrades to Dynamics NAV or Dynamics 365 Business Central on-premises with the LCT Upgrade, it is possible that the full license credit for the Dynamics C5 2012 license may not be used in which case the System List Price for Dynamics NAV or Dynamics 365 Business Central on-premises may be lower than

Microsoft Dynamics C5 2012 Upgrade Policy - November 2018 P a g e | 5 the Dynamics C5 2012 PLP. The new Enhancement Plan value is calculated based on the new System List Price. If the Enhancement Plan credit exceeds the cost of the new plan, no refund or credit is issued.

Credit for Remaining Value of Customer Service Plan when Transitioning

The Enhancement Plan credit will be prorated based on the value of the current Enhancement Plan amount and the number of days remaining on the plan.

Additional Policies

Use and Service Plan Benefits of Old Product Line

Customers doing a Transition Upgrade to Dynamics NAV or Dynamics 365 Business Central on-premises will continue to have access to their prior version Dynamics C5 license keys after the Transition Upgrade is completed solely for the purpose of retrieving archived data for tax, audit, and/or reporting purposes. However, customers will not be able to add users and/or modules to Dynamics C5 2012 (or prior). To allow time for the upgrade, customers will have the ability to run both their former version and their new version while active on Enhancement Plan (but not to exceed 180 days). In addition, customers active on an Enhancement Plan will be able to use their Customer Service Plan and associated benefits for their former version up to the earlier of the expiration date of the service plan on their upgraded product or 180 days.

Downgrade Policy

Dynamics NAV 2018 Software License Terms provide downgrade rights to Dynamics NAV 2017 and Dynamics 2016. Please refer to the Dynamics NAV 2018 policies for a full description of the downgrade process.

Dynamics 365 Business Central on-premises Software License Terms does not provide downgrade right. Please refer to the Dynamics 365 Business Central on-premises policies for a full description of the downgrade process.

Transition Upgrade Fee

There are no transition fees to upgrade from Dynamics C5 2012 to Dynamics NAV or to Dynamics 365 Business Central on-premises on the Perpetual Licensing model through the LMT Upgrade.

Transitions using the LCT Upgrade may result in additional license and enhancement plan costs.

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Appendix A: LMT Upgrade conversation Table

Dynamics C5 2012 to Dynamics NAV

From To

Protected List Price License Model User/Functionality NAV Perpetual (PLP) Assignment Base Package SQL or Base Package Windows 32 Bit plus Starter Pack Starter Pack Additional Users 2-3

Additional Users 4+ Full User – Limited Upgrade Starter Pack

Database Extensions Starter Pack Starter Pack

Application Builder C5 2012 or prior Basic Development* 80 Codeunits Starter Pack

90 Tables

VAR Layer 90 Tables Starter Pack

All additional functionality Starter Pack Included in Starter Pack except items discontinued *On Dynamics C5 2012, the Basic Development module includes unlimited Tables but access to unlimited Tables is not provided on Dynamics NAV. Note: unlimited access to objects (example, Forms and Reports) are not provided in Dynamics NAV even if access to unlimited objects is provided on Dynamics C5 2012 licenses.

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Appendix B: LMT Upgrade conversation Table

Dynamics C5 2012 to Dynamics 365 Business Central on-premises

From To

Protected List License Model User/Functionality Business Central on-premises Price (PLP) Assignment

Base Package SQL or Base 1 Essentials User Essentials Users Package Windows 32 Bit

Per Additional Users 1 Essentials User Essentials Users

Application Builder

C5 2012 or prior Basic Development* 80 Codeunits Application Builder

90 Tables

VAR Layer 90 Tables Tables

All additional functionality Included in Essentials Users Essentials Users except items discontinued *On Dynamics C5 2012, the Basic Development module includes unlimited Tables but access to unlimited Tables is not provided on Dynamics 365 Business Central on-premises. Note: Unlimited access to objects (example, Queries and Reports) are not provided Dynamics 365 Business Central on-premises even if access to unlimited objects is provided on Dynamics C5 2012 licenses.

© 2018 Microsoft Corporation. All rights reserved This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT. This information is provided to help guide your authorized use of products you license; it is not your agreement. Your use of products licensed under your license agreement is governed by the terms and conditions of that agreement. In the case of any conflict between this information and your agreement, the terms and conditions of your agreement control. Prices for licenses acquired through Microsoft resellers are determined by the reseller.

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