Implementing a new ERP system like Dynamics 365 Business Central implementation is a major investment.
With so many variables impacting total costs, businesses often wonder “What will this truly cost us?”
As an experienced implementation consultant, I’m frequently asked this question.
Here’s a transparent look providing real-world cost ranges across over 500 projects, with helpful guidance so you can budget properly.
Upfront Software Licensing Fees
Let’s start by covering the base Dynamics 365 Business Central licenses. For cloud deployments, expect to pay:
Per User Per Month Licensing
- Essential Licenses: $70 – $100 per user monthly
- Premium Licenses: $100 – $150 per user monthly
The minimum number of licenses is three (3). These provide access to the core Dynamics 365 Business Central system and components only.
On-Premise Perpetual Licensing
- Essential Licenses: $700 – $1,000 per user
- Premium Licenses: $1,000 – $1,500 per user
You’ll also need SQL Server and Windows Server licenses for on-premise, which can tack on another $5,000 – $20,000 depending on scale.
As you can see, the cloud subscription model allows you to start small and cost-effectively scale as you grow.
Implementation Cost Ranges
Here is an overview of total implementation costs across different sizes of projects:
- Small/Medium Business Deployments
- Starter Projects: $25,000 – $75,000
- Single Country Rollouts: $100,000 – $350,000
- Enterprise Deployments
- Single Region: $250,000 – $1 Million+
- Global Complex: $1 Million+
As you’ll see, costs scale rapidly for global enterprises with customizations, complex integrations, and expansive change management needs. Let’s break down the main cost drivers.
Cost Driver 1: Customizations
The #1 cost driver is customizations. Out-of-the-box Dynamics 365 Business Central provides strong functionality for most industries. But you may require code modifications to tailor to your unique business processes…
Cost Driver 2: Integrations
The second biggest cost driver is integrations to other systems like CRM, e-commerce, payroll, etc. Simple point-to-point integration starts around $25,000. More complex bi-directional, real-time integrations range from $100,000 to $250,000+…
Cost Driver 3: Data Migration
Migrating and cleansing your legacy data can rack up major hours and expenses. Costs range from $50 per hour for basic data migration, up to $150 per hour for more complex conversions and cleansing.
Cost Mitigation Tips
Here are 5 tips to help control costs for your Dynamics 365 Business Central implementation:
- Start with OOTB over Customizations
- Phase by Modules
- Clean Your Data First
- Scope Integrations Wisely
- Budget for Change Management
Conclusion
While total implementation costs vary widely, $100,000 to $350,000 is typical for most medium-sized, single-country deployments.
Enterprises spend much more. Follow our guidance to set realistic budgets and control expenses for your successful Dynamics 365 Business Central rollout. Let me know if you need any specific advice or quotes tailored to your project!