Licensing Models

Microsoft Dynamics NAV 2018 licensing is designed to help small and midsize businesses jumpstart their financial insights and distribution management and then easily extend into all functional areas. Four core components: the Starter Pack, the Extended Pack, the Full User and the Limited User. Additional configuration components are also available.

With Microsoft Dynamics NAV 2018, you must license:

  • The solution functionality;
  • Access to the solution functionality by your users.

Licensing the Solution Functionality

Microsoft Dynamics NAV 2018 functionality is delivered through the Starter Pack and the Extended Pack.

The required Starter Pack gives you core financials and distribution functionality to help:

  • Gain control and insights over your finances;
  • Manage sales items and materials in a distribution environment;
  • Provide licensed users a singular view of the business from virtually anywhere through a variety of devices.

The optional and additive Extended Pack adds functionality that integrates core financials and distribution management capabilities with industry specific functionality extensions such as:

  • Manufacturing to support and control the manufacturing environment;
  • Warehousing to manage the warehouse to support operations;
  • Professional Services to manage the billables generated by consultants;
  • Basic Customer Relationship Management (CRM) to manage customer and supplier relationships and offer the highest quality of service and support.

Licensing User Access to the Solution Functionality

Users accessing the solution must be defined according to the type of access they need: Full or Limited.

Full vs. Limited User Licenses

Access License Types

Microsoft Dynamics NAV 2018 offers two types of access licenses:

Concurrent Client Access Licenses (CALs), only available under the Perpetual Licensing model, and User Subscription Access Licenses (SALs), only available under the Subscription Licensing model. Concurrent CALs are based on the number of users accessing the solution simultaneously. While this access license type allows an unlimited number of individuals to be defined in the system, the number of individuals accessing the solution at any given time may not exceed the total licensed number of Concurrent CALs. Concurrent CALs are assigned temporarily to an individual user for the duration of their active session. Once that individual ends the active session, the CAL then becomes available for use by another individual. Concurrent CALs license individual users to access the application only while they are consuming one of the Concurrent CALs (making it unavailable for other individuals to access the application).

User SALs, only available in the Subscription Licensing model, grant individual users the right to access the application irrespective of the number of users simultaneously accessing the application. Unlike Concurrent CALs, a unique User SAL must be assigned to each individual user that will access the solution functionality. SALs are specific to an individual and cannot be shared.

Licensing Models

Microsoft Dynamics NAV 2018 is licensed through one of two licensing models: Perpetual Licensing and Subscription Licensing. If you want to manage the solution internally, and will run the software on your premises (or, subject to license mobility rights, have it hosted by a third party Infrastructure as a Service [IaaS] provider acting as your agent).

With Subscription Licensing, you license non-perpetual rights to use the software, meaning you can use the software only during the term of the agreement secured by periodic payments. This model lowers your initial licensing costs and provides you with the flexibility to increase or decrease subscription license counts from one subscription term to the next. You can use Subscription Licensing when you want to have the ERP solution hosted and managed as Software as a Service (SaaS) by your partner or any third party.

With Perpetual Licensing, you license the desired solution functionality and access to that functionality is secured by licensing access licenses. There are significant licensing differences between Perpetual Licensing and Subscription Licensing, as illustrated below:

  Perpetual Subscription
Self-managed, on-premises deployment  
Self-managed, hosted deployment (IaaS)*  
Partner-managed, on-premises deployment  
Partner-managed, partner-hosted deployment (SaaS)  
Own your licenses  
Lease your licenses  
Concurrent access licenses  
Per User access licenses  

*Requires an active enhancement Plan

Please refer to the Dynamics NAV 2018 Licensing Guide for additional details. You can find it here:

Click here