Microsoft’s October 2025 Business Central pricing changes caught many finance teams off guard. The announcement was straightforward enough: new rates, new structure, effective October 1st. What wasn’t clear? How much more it would actually cost.
These Dynamics 365 Business Central (BC) pricing updates affect everyone differently. Business Central cloud users face one set of changes, on-premise customers another. Teams planning new implementations are scrambling to adjust budgets, while others are reconsidering their Business Central services roadmap entirely.
Here’s what these pricing changes mean for your BC implementation and budget.
What is the New Pricing for Dynamics 365 Business Central?
A few months back, Microsoft delivered its first Dynamics 365 Business Central pricing update in more than five years. The numbers tell one story, but the real impact depends on your current setup, user count, and renewal timeline.
Read on to know everything about the new pricing structure.
New Cloud Licensing Prices
The cloud pricing changes affect all three main license types.
Business Central Premium licenses will cost $110/month per user rather than $100, while Essentials licenses increase from $70 to $80/month per user. Microsoft sweetens the deal slightly with increased storage allocations for each license tier.
| License Type | Old Price (Monthly) | New Price (Monthly) | Old Storage | New Storage |
| Essentials | $70/user | $80/user | 2 GB | 3 GB |
| Premium | $100/user | $110/user | 3 GB | 5 GB |
| Device | $40/device | $45/device | 1 GB | 1.5 GB |
In short, prices are going up about 10-15%, but the storage increases help offset some of that sting.
Most organizations will feel the Premium license increase most directly. If you have 50 Premium users, that’s an extra $500 monthly or $6,000 annually. The math adds up quickly for larger teams.
The updated prices apply to new and existing subscriptions upon their first renewal on or after October 1, 2025. This gives existing customers some breathing room to plan and potentially lock in current rates with longer-term contracts.
Business Central On-Premise Pricing Breakdown
Business Central on-premise pricing follows a different structure entirely, built around Client Access Licenses (CALs) rather than monthly user fees.
Effective October 6, 2025, Microsoft is increasing the annual rates for Enhancement Plans (EP) and Advantage Plans (AP) by 1%: 1-year EP from 19% to 20% of Protected List Price (PLP).
Who Will Be Affected by This Update
BC pricing changes touch every corner of the ecosystem:
- Small and medium-sized businesses feel the increase most directly since they typically run on tighter margins. A 20-person company using Premium licenses faces an extra $2,400 annually; money that might otherwise fund growth initiatives or additional headcount.
- Enterprise customers have more flexibility but also more complexity. Large organizations often negotiate custom pricing through Enterprise Agreements, which may buffer them from immediate increases. However, renewal conversations become more challenging when decision makers see double-digit percentage increases.
- Microsoft partners must now recalibrate their pricing proposals and client conversations. Partners who quoted implementations based on previous pricing need to adjust ongoing deals and communicate changes to prospects already in the sales pipeline.
- New buyers face sticker shock, especially when comparing Business Central to competitors who haven’t announced similar increases. This timing issue affects conversion rates and deal velocity.
- Current users renewing after October 2025 get the biggest surprise. Organizations that budgeted based on current rates suddenly need additional approval for the price jump, potentially delaying renewals or forcing downgrades to manage costs.
Aegis Softtech monitors Microsoft partner channels and roadmap changes so you don’t have to. If you're unsure how this impacts your renewal, we’ll tell you before it affects your bottom line.
Why is Microsoft Updating Business Central Pricing?
Microsoft’s pricing adjustment reflects significant platform investments over the past two years. The company has rolled out AI-powered Copilot features across Business Central, integrated deeper Microsoft 365 connectivity, and expanded automation capabilities that weren’t available at previous price points.
The value-based pricing model aligns costs with delivered functionality.
Recent additions, such as predictive analytics, automated financial reconciliation, and intelligent purchase order processing, represent substantial development investments. Microsoft positions the increases as reflecting enhanced platform value, not cost inflation.
Market alignment also plays a role. Competing ERP solutions have consistently increased prices over the past three years, making D365 Business Central pricing increasingly unsustainable in relation to development costs and market expectations. This update brings Microsoft closer to industry standards while maintaining competitive positioning.
Cloud vs. On-Premise: Which Pricing Model Makes More Sense?
The pricing changes make your deployment decision even more critical. Here’s how the two models stack up across key decision factors:
| Factor | Cloud Deployment | On-Premise Deployment |
| Upfront Costs | Minimal (first month’s licensing) | High ($100K-$500K+ for servers, CALs) |
| Monthly Expenses | Predictable ($80-$110/user) | Variable (enhancement plans + IT costs) |
| IT Resources | Microsoft handles the infrastructure | Requires a dedicated IT team |
| Updates and Features | Automatic rollouts | Manual upgrades, testing required |
| Customization | Limited but improving | Full control, extensive options |
| Data Control | Microsoft’s secure cloud | Complete on-site control |
| Scalability | Add/remove users instantly | Requires infrastructure planning |
| Compliance | Microsoft’s certifications | Your responsibility, full control |
| Disaster Recovery | Built-in, geographically distributed | Must build and maintain yourself |
| Best For | Growing companies, limited IT resources | Large orgs with compliance needs |
Long-Term Cost Comparison
A realistic three-year comparison for a 100-user organization shows interesting patterns:
Cloud Deployment (Premium Licenses)
- Year 1: $132,000 (100 users × $110/month x 12 months)
- Year 2: $132,000 (assuming no price increases)
- Year 3: $132,000
Total: $396,000
On-Premise Deployment
- Initial licensing: $250,000 (server + CALs)
- Enhancement Plan (20% annually): $50,000/year
- Infrastructure and IT labor: $75,000/year
Total 3-year: $625,000
However, on-premise costs become more favorable at higher user counts and longer timeframes, especially when factoring in avoided cloud storage overages and data transfer costs.
Choosing the Right Fit With Business Central Services
The pricing changes make choosing the right setup more important than ever. You don’t want to overpay for licenses you don’t need or pick the wrong deployment model and regret it later.
Business Central services play a vital role here.
A good partner helps you figure out the real costs after looking at your team size, how you work, and what features you need. Then, they’ll show you whether cloud or on-premise makes more sense for your budget.
At Aegis Softtech, we've helped hundreds of companies navigate these decisions. We break down the costs, model different scenarios, and help you avoid the common mistakes that blow up budgets later.
What the Pricing Update Means for Your Business Central Implementation
If you’re planning a Business Central implementation for late 2025, these pricing changes just complicated your timeline and budget.
Teams already working on implementations must decide: rush to go live before October to lock in current rates, or adjust the budget for higher costs?
The smart move is to plan for both scenarios. Know what the new pricing means for your specific situation and have a backup plan if budgets get tight.
Implementation Planning and Licensing Strategy
Here’s what to do right now:
- Move up your timeline if possible. Going live in September instead of November could save thousands on that first year of licensing.
- Call your Microsoft partner as soon as possible. Many partners can lock in current rates for projects already in motion, but you need to ask.
- Start with core users at current pricing, then add more users later as you prove the system works.
- Look into longer contracts. Multi-year agreements might give you better rate protection going forward.
- Plan for growth. Remember that adding users after October will cost more than you originally budgeted.
How Aegis Softtech Helps You Navigate ERP Pricing Decisions
At Aegis Softtech, we’ve guided 500+ companies through effective BC implementations. We know that pricing changes like this create headaches for finance and IT teams trying to make the right decisions.
We help you see the full picture. Sure, you can look at Microsoft’s price sheet, but what about integration costs? Training expenses? The hidden fees that pop up later? We model all of that so you know what you’re signing up for.
With October’s pricing changes coming fast, timing matters. We can quickly assess your situation and help you decide whether to accelerate your timeline, adjust your approach, or lock in better rates before it’s too late.
Need to assess your Business Central licensing strategy before October?Our team can model different scenarios and help you optimize costs while meeting your implementation goals.
Our client, Rajiv Doshi, shares:Working with Aegis Softtech on our Microsoft Dynamics 365 Business Central implementation has been a great experience. Their deep industry knowledge and dedication to delivering results on time gave us confidence in their work.
Lock the Right Deal with Aegis Softtech
If your Business Central renewal lands after October or you’re mid-way through an implementation, this pricing update changes your math (fast). A 50-user Premium setup means $6,000 more per year, and on-premise plans come with a higher Enhancement Plan rate.
Our BC experts work directly with your numbers, not generic estimates. We compare license tiers against your actual user roles, model cloud vs. on-premise cost over five years, and flag contract timing risks most teams miss.
Our team has already helped clients restructure deals this quarter to avoid rate hikes and unnecessary upgrades.
You don’t need a partner to explain the new pricing. You need one to show you exactly what to do about it.
FAQs
What are the new features of Business Central 2025?
The new features of Business Central 2025 focus heavily on AI, reporting speed, and improved Microsoft 365 integration. Copilot gets a major upgrade with more contextual suggestions for tasks like invoicing, quote generation, and inventory updates.
You’ll also see faster financial reporting with real-time data sync from Excel and Power BI. Usability improvements include simplified onboarding for new users, stronger approval workflows, and deeper native integrations across Microsoft Teams and Outlook.
How much is Dynamics 365 Business Central Premium?
Dynamics 365 Business Central Premium costs $110/month per user. This tier includes all Essentials features plus advanced tools like service management and manufacturing.
Why is Microsoft increasing Business Central prices in 2025?
Microsoft is increasing Business Central prices in 2025 to align the product’s value with recent enhancements. The updates include embedded AI capabilities, expanded automation, and tighter Microsoft 365 integrations, especially through Copilot and Power Platform.
According to Microsoft, these upgrades improve both employee productivity and operational efficiency, which justifies the new pricing model. The hike also brings global pricing more in sync across regions.
Is Business Central worth the cost for SMBs?
Business Central is worth the cost for SMBs that need scalable finance, sales, and operations tools without managing on-prem systems. The platform now includes AI assistance, automated reporting, and workflow customization.
These features help smaller teams save time and reduce manual work. If you’re managing multiple systems or struggling with disconnected tools, Business Central offers a unified experience that grows with your business.
