Now is a great time for businesses to consider updating their Enterprise Resource Planning (ERP) software solution to Microsoft Dynamics NAV. This software solution is both robust and scalable and its support for all aspects of the manufacturing process including, but not limited to, supply chains, production lines and overall operations makes it applicable to businesses of all sizes, particularly small and mid-size businesses. In an uncertain business climate, cost is an important factor in considering an ERP software upgrade and the pricing for Microsoft Dynamics NAV solution demonstrates the overall cost-effectiveness of the product.

Dynamics NAV Pricing Factors

There are four main factors that determine the overall price of an Microsoft Dynamics ERP solution:

  1. The expected number of concurrent users
  2. What level of functionality is required
  3. The cost of the overall software license
  4. Deployment – On Premise, Hybrid, Cloud

Dynamics NAV On Premise

We will focus today on the On Premise Deployment for Dynamics NAV. The Microsoft Dynamics NAV solution handles up to 750 concurrent users having both read and write access. However, there is a significant difference in the cost of a user having ‘read-only’ permissions (aka ‘limited-user’) and a user having full write permissions (‘full-user’). A typical limited-user costs approximately $600 to license while a full user license costs about $3,000. Based on this pricing structure, a business that has flexibility to separate peak concurrent usage times via shift work or some other mechanism gains the significant economic benefits of the Microsoft Dynamics NAV solution at a very reasonable price.

The Microsoft Dynamics solution comes with a large number of functional upgrades such as an Extended Pack (~$10,000), an Application Developer ($8,000+), a Solution Developer (~$28,000) and more. These upgrades provide additional functional capabilities and with repeated and knowledgeable use can save a business tens of thousands of dollars or more per year. Conversely, a business having minimal if any need for these upgrades might be better off selecting the base solution .

The software licensing cost for this product is the largest driver of the NAV pricing structure. A starter pack having three concurrent user licenses is included in the pricing of all NAV ERP solutions. For a very small business, this minimal solution costing between $10,000 – $12,000 may be sufficient for its needs. Conversely, a large organization that requires 500 or more concurrent full users along with several software upgrade packs will cost in the neighborhood of $250,000 exclusive of any hardware and infrastructure cost required to support this solution.

Other to consider: Dynamics 365 Business Central

Since Microsoft renamed Dynamics NAV to Dynamics 365 Business Central, Microsoft has done a great job to improve software with plenty more offerings. Offerings such as better integration with other Microsoft applications and seamless data sharing with Microsoft Dynamics CRM.  Aside from offerings, Dynamics 365 Business Central has different licensing options, hosting options, and easy upgrades.

The overall Microsoft Dynamics NAV pricing options give businesses significant flexibility in choose what option works best for them. To gain information and insight on what NAV ERP option is best for you, contact us and let us help you select the best solution for your business. We are happy to direct you to our cloud options if that is a better fit for you and can provide cloud pricing for your company as well.