One question that comes up pretty regularly from companies evaluating Dynamics CRM is “what’s it cost”. They’re usually looking for general ballpark pricing just to understand if the Dynamics CRM software is a fit for their budget or cost expectations.

So, here’s a quick way to get ballpark pricing for the software. On average I’d say $1,200 per user is a good general rule of thumb. For smaller companies it can be as low as $500 per user. There ya go.

For those of you who want a little more accurate pricing and nuts-and-bolts detail, read on.  Microsoft licensing can be a bit confusing and pricing can vary so I’ll do my best to make this simple.

This pricing is for the On-Premise version which is typically installed at your business. Another version, Dynamics CRM Online, is the Software-As-A-Service (SAAS) version hosted by Microsoft at their data centers. The Dynamics CRM Online pricing is pretty straightforward and as of this writing is $44-$59 per user per month.

For Microsoft Dynamics CRM On-Premise, there are two primary types of licenses you usually need to purchase:

• Server License: You need one Server license for each server computer Dynamics CRM will be installed on. Unless you’re a larger company with a complex business model you mostly likely will only need 1 Server License. There are three Server Editions to choose from. Workgroup Edition is for smaller companies with 5 or less users. Enterprise Edition is usually for larger more complex companies. The majority of my customers are on the Professional Edition.
  • Workgroup Edition (Maximum of 5 users, includes 5 users): $2,500 – $3,000
  • Professional Edition Server: $2,000 – $2,500
  • Enterprise Edition Server: $5,000 – $6,000

• Client Access License (CAL): You will need one CAL for each “client” that will connect to CRM. Client doesn’t mean your customer but rather the number of your employees (Users) or computers (Devices) that will access CRM. In my experience, most companies go with the “User” license model. Note that the Workgroup Edition already comes with 5 CALS so there’s no need to purchase more.
  • Client Access Licenses (CALs): Approx $1,000 – $1,300

I listed each of the prices as a range because the actual price will depend on which Microsoft Volume Licensing program you already have and/or decide to go with. Common Microsoft Volume License programs include Open Value, Open Business, Select, and Enterprise. Each one has different benefits that I won’t get into here.

Here are a couple of examples of licensing configurations and pricing for Microsoft Dynamics CRM

• Small Business Example: Smaller businesses (1-50 employees) that don’t need more than 5 users usually opt for Workgroup Edition which supports a maximum of 5 users and also comes bundled with 5 Client Access Licenses. So let’s say you have 3 salespeople and 2 executives that will be using CRM. You may need:
  • 1 Server License: Approx $2,700
  • 0 Client Access Licenses: (Already comes with 5 CALs)
  • Total CRM Software Ballpark Estimate = $2,700

• Medium Size Business Example: Many of my medium size clients (51-500 employees) are using the Professional Edition with about 30 users on average. So let’s say you have 20 salespeople, 5 customer service people, 3 marketing people, and 2 executives that will be using CRM. You may need:
  • 1 Server License: Approx $2,200
  • 30 Client Access Licenses: Approx $1,100 each x 30 = $33,000
  • Total CRM Software Ballpark Estimate = $35,200

That covers the software. Another thing to consider for any CRM project is the cost to implement it (installation, customization, training, etc) for your business. I’ll cover that in a different post.