What You Should Know About Dynamics 365 Transition Options Cody to intro

About the Speakers Cody Marshall Vice President of Services cody@stoneridgesoftware.com 10 Years in Dynamics AX Co-Founder Stoneridge Software Eric Newell CEO eric@stoneridgesoftware.com 18 years in Dynamics – with 13 at Microsoft and 5 at Stoneridge

Topics What’s in Dynamics 365 Deployment Options License Types Transition Options Upgrade

Dynamics 365 Components

What’s in Dynamics 365? AppSource Cody Sales, Customer Service, Field Service, PSA all come from CRM Enterprise Finance & Ops, Talent and Retail from AX Business Edition Finance & Ops from NAV Microsoft Stack – Power BI, Flow, Power Apps, Common Data Service, Azure Machine Learning, Cortana Intelligence

Deployment Options

Deployment and Licensing Options cloud cloud + edge local business data Use case scenarios Licensing Options Additional Details Customers with active Microsoft Dynamics Enhancement Plans or Software Assurance, may upgrade to local business data as they remain entitled to access new versions and updates Transitions to Dynamics 365 cloud subscriptions are available to customers with active Microsoft Dynamics Enhancement Plans or Software Assurance Fully managed by Microsoft Systems of Intelligence Planned multi-instance federation Elastic scale out Cloud – MS managed, Edge – customer managed (AKA “Hybrid”) Expected December 2017 Multiple local compute and storage workplaces for retail, shop floor and warehouse while utilizing cloud for scale, master data mgmt., data aggregation Disconnected data center (AKA “On Premise”) Local data residency Single instance only Subscription Cloud Licensing Only Available Now Subscription Cloud Licensing (Pricing Not Yet Available) Single node Edge licensing provided as use right – no additional cost per node (perpetual) Standard perpetual license options Volume Licensing EA Subscription Cody On-prem talking points: Local Business Data Customer’s business data and processes are disconnected from the cloud and are stored and run locally in the customer’s or their partner’s data center. Some connectivity is required for system management and updates enabled through Microsoft Dynamics Lifecycle Services (LCS), a cloud-based application lifecycle management service. Planned to be generally available in Q2 calendar year 2017. Customers can license local business data deployments via a Dynamics 365 for Operations license with Software Assurance/Enhancement Plan or a subscription model. Active SA or BREP will be required for a non-subscription model. We plan to make this available in Volume Licensing and Dynamics Pricelist (DPL). Customers with active Microsoft Dynamics Enhancement Plans or Software Assurance may upgrade to local business data as they remain entitled to access new versions and updates. Licensing and pricing information is currently planned to be disclosed on 4/1 to partners through PartnerSource and existing customers through CustomerSource. Cloud + Edge Cloud and edge deployments maintain data from business-critical processes for retail, manufacturing, warehousing, etc. on-premises for business continuity and store Master Data centrally in the cloud. Cloud licensing will be required for Cloud + Edge. More information to be made available in Q2 calendar year 2017 (Q4 fiscal)

License Options

Dynamics 365 Plans & Standard Pricing $210 CUSTOMER ENGAGEMENT PLAN $115 UNIFIED OPERATIONS PLAN $190 POWERAPPS SALES FIELD SERVICE POWERAPPS RETAIL FINANCE AND OPERATIONS $40 $95 $95 $40 $170 20 seat min CUSTOMER SERVICE PROJECT SERVICE AUTOMATION TALENT Included with Unified Operations Plan $95 $95 $40 5 seat min Eric This graphic shows what the overall Dynamics 365 SKU structure will look like with the introduction of the Operations apps and Unified Operations Plan. You’ll see that in addition to the introduction of the Unified Operations Plan, we are also renaming Plan 1 to the Customer Engagement Plan and Plan 2 to the Dynamics 365 Plan, which encompasses all the capabilities of both the Dynamics 365 customer engagement and the Dynamics 365 Unified Operations workloads. DEVICE $75 ACTIVITY $50 TEAM MEMBERS $8 All pricing subject to change please consult price list for actual pricing

Operations Licenses & Use Rights Activity Team Members Device Full Access This license includes full read, edit and approval access across the entire solution Heavy User but not full access This license includes the rights to: Approve all Activity related transactions Create or edit the items related to the following capabilities: warehousing, receiving, shipping, production orders, purchase orders, sales orders, project activities, vendor maintenance, and all budgets Read Access with select ‘Light’ write access tasks This license includes read access across any and all Dynamics 365 apps as well as the rights to: Record time and expense Approval of time, expense, invoices Manage personal information Manage direct employee activities in human resources Create requisitions Create or edit the items related to the following capabilities: quality control, service orders, and department level budgets Shared with subset of capabilities This license provides multiple users with access through a device to operate a point of sale device, shop floor device, warehouse device or store manager device. Cody – need to shore this up/simplify this

Transition Options

AX 2012 to D365 EE Online Continue with Enhancement Operations - $76/u/m From Functional to Activity - $10/u/m From Task to Activity - $25/u/m Device - $36/u/m Self Service – no charge Discontinue Enhancement Operations - $126/u/m Activity - $30/u/m Self Service - $4.80/u/m Task - $45/u/m Eric

AX 2012 to D365 EE On-Premise No license fee unless you need to move to more encompassing license AX 2012 Dynamics 365 for Operations (on-premises) Primary Path Secondary Path Enterprise User CAL  Operations (1:1) Activity (1:1) Functional User CAL Operations (1:1) Activity (1:1) Purchased before April 1, 2017  Functional User CAL Activity (1:1) Team Member (1:1) Purchased April 1, 2017 & after Task User CAL Activity (1:1) Team Member (1:1) Purchased before April 1, 2017  Task User CAL Activity (3:1) Team Member (1:1) Purchased April 1, 2017 & after Eric Self Serve user CAL  Team Member (1:1) NA Only SA payments on successor licenses will be needed at renewal as license was already paid, and replacement Licenses granted Only one license can be assigned per user at a given time Customers can choose any listed transition unless outside of the specified date range Downgrades are permissible without repurchasing the license

AX 2009 to D365 EE Online Transition from concurrent 2009 licenses through to named 2012 licenses using either the Formula based method Credit based method Transition to Dynamics 365 for Operations Online Continue with Enhancement Operations - $76/u/m From Functional to Activity - $10/u/m From Task to Activity - $25/u/m Device - $36/u/m Self Service – no charge Discontinue Enhancement Operations - $126/u/m Activity - $30/u/m Self Service - $4.80/u/m Task - $45/u/m Eric

AX 2009 to D365 EE On-Premise Transition from concurrent 2009 licenses through to named 2012 licenses using either the Formula based method Credit based method Transition to Dynamics 365 for Operations On-Premise No charge unless you want a more encompassing role See chart on earlier page Eric

Timing for Transitioning Timing Matters Licensing Model On-Premises On-Premises to Online Timing for Transitioning Volume License – At Renewal Cloud Add-On – Anytime Dynamics Price List – Customer’s choice From Software Assurance – At Renewal License Renewal or Anniversary Date Full Platform Transition to Dynamics 365 SKU’s Must be current on Software Assurance or Enhancement Mainstream Support End Date AX 2009 AX 2012 R1 & R2 April 10, 2018 AX 2012 R3 October 10, 2021 Extended Support End Date October 12, 2021 January 10, 2023 Eric As you saw in the previous slide, some transition options are only available at certain times which makes the timing important. In addition to when you might be able to transition your licenses, we also know there’s planning required for budgeting the time and resources to do an upgrade. Something that has really helped our clients decide how to lay out the next 1-5 years of their technology roadmap is knowing the other important dates that might impact the choices you make. We already talked about your License Renewal & Anniversary Date. Two other important dates are the Mainstream and Extended Support End Dates for the current product you are using. Why is it important to be on a Mainstream Supported Product? Mainstream Support is the first phase of the product lifecycle. Two reasons you want to remain on a supported product are: You can receive support updates and hotfixes to fix bugs and issues. This keeps the platform up-to-date and reliable. Regulatory Compliance ends with Mainstream Support – this means that if your organization is legally obligated to follow regulatory compliance standards, you need to manually complete this process to stay compliant. During Extended Support, Microsoft provides support for the product and will provide security-related hotfixes but there are no new non-security related updates or features being added. For those of you on Stoneridge Support Plans, it’s also worth mentioning that we continue to offer our support regardless of your product support end dates. For those of you on Dynamics AX 2009, 2012 R1 or R2, your mainstream support ends in less than a year - April of 2018. You will have extended support available through October of 2021. For those of you on Dynamics AX 2012 R3, you have about 4 ½ years of mainstream support left but you have extended support through 2023. So if you look to upgrade before you run out of mainstream or extended support, you’ll want to consider this as you put together your transition timeline.

What Should You Do? Code check to identify customizations and level of effort to upgrade those code pieces. Dynamics AX License Audit: Runs a report to identify all of the users in the system Document the Roles associated to each user Identifies the highest license level for each role (Enterprise, Functional, etc.) Final report showing # of users in each license level A consultation to review the license report Analyze roles/duties assigned to users Identify any that can be changed, modified or dropped to save you money when mapping your existing licenses to the Dynamics 365 models. Review cost associated to code and license upgrades. Cody – need to clean up I know there’s been a lot of information to digest to this point. When I was putting this presentation together, I wanted to be able to stand up here and give each of you clarity on what your company’s transition might look like, but the truth is, it’s complicated. Every single scenario is unique because the answers depend on so many factors: The current license agreement type you have What version of Dynamics AX you’re currently on Your user counts and functional use cases Whether you want to stay on-premise, move to the cloud or do both The level of customizations you have currently When you might have resource bandwidth and budget to actually DO a transition…. Some of our customers have already made some of these decisions because of the timing of the expiration of their existing agreements. And out of those conversations, I went to the smart people in our development and technical teams to figure out a way we can help customers get a handle on what their upgrade path would look like in terms of timeline and cost. Out of that came the Dynamics 365 Strategic Mapping Session. Essentially, what we do is Code check to identify customizations and level of effort to upgrade those code pieces. Dynamics AX License Audit: Runs a report to identify all of the users in the system Document the Roles associated to each user Identifies the highest license level for each role (Enterprise, Functional, etc) Final report showing # of users in each license level A consultation to review the license report. Analyze roles/duties assigned to users Identify any that can be changed, modified or dropped to save you money when mapping your existing licenses to the Dynamics 365 models. When the mapping session is complete you will have a rough estimate of what the cost and timeline of an upgrade might look like for you. The exercise also allows you to see areas where you ay want to do some clean up work with your roles

Executing the Upgrade

Data Migration Code Migration AX 2009 to Dynamics 365 DIXF Export from 2009 Data Entity Import Code Migration Not Available Becky to speak to this. Include: Code Migration considerations and general approach We have a webinar coming up We’re building automation

Data Migration Code Migration AX 2012 to Dynamics 365 DIXF Export from 2012 Data Entity Import Code Migration R3 Supported RTM expected Becky to speak to this

Questions? Connect With Us: Licensing Guide Dynamics 365 Pricing Transition Guide stoneridgesoftware.com/blog Roadmap: