Microsoft Dynamics 365 Business Central Price Increase: October 2025 Update

Microsoft is once again aligning its pricing strategy to reflect the growing value and capabilities of its cloud-based ERP solutions. Effective October 1, 2025, a significant Business Central Price Increase will take effect, marking a key moment for organizations leveraging this powerful platform.

This Business Central Pricing Update not only underscores Microsoft’s commitment to innovation but also signals important changes that businesses must prepare for. In this article, we break down what’s changing, why it matters, and how you can strategically adapt to stay ahead.

Understanding the Business Central Price Increase: October 2025

Microsoft has announced a price increase for Dynamics 365 Business Central, effective October 1, 2025. This is the first such increase in over five years and reflects the significant enhancements made to the platform, including AI-powered features and expanded capabilities across finance, supply chain, and analytics.

Key Pricing Changes (Effective October 1, 2025)

Additional Notes

• The new pricing applies to new subscriptions and existing subscriptions upon renewal after October 1, 2025.
• Microsoft is also increasing included storage with each license tier.

Enhancements Include

• Copilot integration for AI-assisted workflows
• Real-time financial analysis
• Improved interoperability with Microsoft Power Platform
• Sustainability modules and master data management.

Reasons behind D365 Business Central Price Increase: Oct 2025

The October 1, 2025 Microsoft Dynamics 365 Business Central price increase is driven by several strategic and product-related factors. Here are the key reasons behind the change:

1. First Price Adjustment in Over 5 Years

This is the first price increase since the product's launch, reflecting the cumulative value added over time.

2. Major AI and Copilot Enhancements

Integration of Microsoft Copilot brings AI-powered features like:

• Real-time financial analysis
• Automated account reconciliation
• AI-assisted workflows across finance, supply chain, and service operations

3. Expanded Functional Capabilities

Significant improvements across:

• Finance and analytics
• Manufacturing and supply chain
• Sustainability tracking
• Master data management

These updates make Business Central more competitive with enterprise-grade ERP systems.

4. Increased Storage Entitlements

Each license tier now includes more cloud storage, supporting larger datasets and more complex operations:

• Essentials: 2 GB → 3 GB
• Premium: 3 GB → 5 GB
• Device: 1 GB → 1.5 GB

5. Better Integration with Microsoft Ecosystem

Enhanced interoperability with Microsoft Power Platform, Teams, and Azure services, enabling more seamless business process automation.

6. Global Pricing Alignment

Microsoft is aligning pricing across regions and currencies to ensure consistency and fairness globally.

How will this affect the existing users?

The October 1, 2025 price increase for Microsoft Dynamics 365 will affect existing users in the following ways:

1. Price Change Applies at Renewal

• Existing subscriptions will retain current pricing until their next renewal date after October 1, 2025.
• Upon renewal, the new pricing structure will automatically apply.

2. Increased Value with More Storage

Users will receive additional cloud storage per license tier:

• Essentials: +1 GB
• Premium: +2 GB
• Device: +0.5 GB

This helps support growing data needs without immediate extra costs.

3. Access to New Features

Existing users will benefit from:

• Copilot AI features (e.g., automated financial insights, smart suggestions)
• Improved integrations with Power Platform and Teams
• New modules for sustainability and master data management

4. Budget Planning Required

• Organizations should review their licensing footprint and forecast budget impacts for upcoming renewals.
• Consider consolidating or optimizing licenses to manage costs.

5. Training and Adoption

With new features being introduced, user training may be necessary to fully leverage the platform’s capabilities and justify the price increase.

What should I consider during renewal?

When preparing for your Dynamics 365 renewal after the October 1, 2025 price increase, here are the key considerations to ensure you're optimizing both cost and value:

1. Review Current Usage

• License Utilization: Are all assigned licenses actively used?
• User Roles: Are users assigned the correct license type (Essentials vs Premium vs Device)?
• Storage Consumption: Will the increased storage cover your needs, or do you need more?

2. Evaluate Cost Impact

• Calculate the new total cost based on the updated pricing.
• Consider annual vs monthly billing annual often offers discounts.
• Factor in additional modules or services you may need going forward.

3. Consider License Optimization

• Reassign or remove unused licenses.
• Switch license types if some users don’t need full functionality.
• Explore team member licenses for light users.

4. Plan for Feature Adoption

Make a roadmap to adopt new features like:

• Copilot AI
• Power Platform integrations
• Sustainability and analytics modules
• Ensure your team is trained to use these features effectively.

5. Review Security and Compliance

• Ensure your setup aligns with data governance, compliance, and security policies.
• Consider enabling multi-factor authentication, role-based access, and audit trails.

6. Forecast Future Needs

• Will your business grow or change in a way that affects licensing?
• Are there upcoming projects that require additional modules or capacity?

7. Engage with Your Microsoft Partner

They can help:

• Negotiate pricing or bundles
• Provide insights on licensing changes
• Offer support for migration or optimization

What new features have been added in the Business Central pricing update October 1, 2025?

Following the October 1, 2025 pricing update, Microsoft Dynamics 365 Business Central is introducing several new features designed to enhance productivity, automation, and sustainability. Here's breakdown of what's new:

AI-Powered Features (Copilot Enhancements)

1. Autofill Fields with AI

Business Central can now suggest values for fields based on your past entries or AI predictions, which can lead to save time and reduce errors.

2. Summarize Records

You can get a quick summary of a customer, item, or sales order right on the screen, tailored to your role.

3. Sales Order Agent

This AI tool can read customer emails, understand what they want to order, check inventory, and even create quotes or orders automatically.

Sustainability Module Enhancements

1. Scope 3 Emissions Tracking

Business Central now helps you track indirect emissions (like those from suppliers or product use) and calculate carbon impact for finished goods which can be useful for sustainability reporting.

Data & Process Improvements

1. Master Data Management

New tools help you keep your core business data clean and consistent across departments like customer names, product codes, and pricing.

2. Deeper Financial & Manufacturing Analytics

Enhanced dashboards and reports give you more insights into costs, performance, and trends.

3. Better Integration with Microsoft Power Platform

Easier to connect with Power BI, Power Automate, and Power Apps for custom workflows and analytics.

Get Ahead of the Business Central Price Increase, Act Now!

Don’t wait, until the October 1st changes effect. Lock in current pricing, optimize your licenses, and explore solutions with Dynamics Square.

• Schedule a free consultation with our experts
• Review your current licensing to avoid overpayment
• Plan your upgrade or renewal before prices go up

Contact us Today to future-proof your Dynamics 365 investment. If you need any help, please don't hesitate to contact us by phone at +1 281 899 0865 or by email at arish.siddiqui@dynamicssquare.com.