Microsoft Dynamics Great Plains (GP) Licensing Changes: What You Need to Know Now

FMT has worked with Microsoft Dynamics Great Plains (GP) for more than 25 years. We’ve helped hundreds of clients use GP to activate high-performing ERP solutions in manufacturing, distribution, services, and a variety of health and life-sciences companies.  Over the past several years, as Microsoft shifts investment away from GP, we’ve seen a variety of changes to product support, enrichment strategies, and the projected sunset period.

Recently, Microsoft announced significant changes to its Microsoft GP licensing policies. FMT evaluated this announcement and includes the highlights here. While significant, we don’t expect these changes to immediately impact existing customers, but this news should be actively considered by those GP clients considering their two-year strategic infrastructure plan. FMT looks forward to working with you to map out an approach to maximize value from your current and future technology investments.

Summary:

• As of April 1, 2025, there will be no new sales of Dynamics GP Perpetual licenses. Subscription sales can still happen for the additional year.
• As of April 1, 2026, there will be no new customer sales of Dynamics GP. Dynamics GP Subscription will be limited to existing Dynamics customers.
• As of October 1, 2023, an initial adjustment in price for GP licensing (subscription and perpetual licenses) will take place.
• As of October 1, 2023, enhancement plan rates will see a moderate percentage pricing increase. Please contact FMT for details.
• This does not impact existing customers; they can continue to purchase new licenses and modules beyond 2026.
• Support for GP remains the same: The Lifecycle Polices for Dynamics GP

Microsoft recently announced changes to their Dynamics on-premises (DPL) offers and policies. Starting April 1, 2025, new customers of Dynamics GP will use subscription licensing. At that time, Microsoft will discontinue perpetual license sales to new customers for these products. Subsequently, starting April 1, 2026, Dynamics GP Subscription will be limited to existing Dynamics GP customers, with sales to new Dynamics GP customers being discontinued at that time.

Microsoft is also performing pricing updates across subscription pricing and on-premises enhancement plans, with the initial adjustment to subscription pricing taking place on October 1, 2023. The annual price of Enhancement Plans (EP) and Advantage Plans (AP) will increase by one percentage point effective October 1, 2023.

There are no immediate requirements for existing customers, as they will continue to have the option to purchase new licenses and modules beyond 2026, and there may still be tax and other product updates for GP. As of today, the support life cycle remains as posted.

Overall, FMT understands that Microsoft’s goal is to further harmonize and simplify the purchasing decision across cloud and on-premises services. While a Dynamics 365 online solution remains the preferred approach for most customers, Microsoft has indicated that they recognize that some customers will continue to require an on-premises solution.

If you need help navigating these updates and ensuring your business is prepared for the future we’re here to help. FMT Consultants is ready to assist you in understanding the changes and making the right decisions for your business. Whether you need help with licensing, pricing, or implementation, we have the expertise to guide you through the process. Reach out to us today to schedule a consultation.

FAQ:

Q: I’m a current Microsoft Dynamics GP customer. What do I need to do?

A: You can choose not to take action, and your system configuration will persist without disruption. However, FMT encourages you to take this opportunity to update your long-term technology roadmap to include the revised approach to licensing and to discuss options for staying ahead of the market (and your competitors.)

Q: Does this mean the end-of-life for Microsoft GP?

A: No. (Or, not yet.) This indicates an evolution of the Microsoft licensing strategy that appears intended to encourage existing and new GP clients to move more directly into a cloud-based environment using Microsoft Azure.