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Microsoft is raising the prices of its Dynamics 365 application suite by ten percent or more. As an explanation for the price increase, the company says that the products are getting more and more new features from which users can benefit.

In Microsoft’s announcement for Dynamics 365, it announces that prices will rise between 9.26 and 16.67 percent as of October. It is the first time in five years that the tech giant has raised prices for Dynamics 365.

Dynamics 365 is adding more and more features and that calls for a new price tag, Microsoft says. The new features and enhancements should give users such as marketers, salespeople and service agents AI-supported real-time insights. In doing so, Microsoft hopes to optimize operational and mission critical processes with data insights, supply chain insight and complete automation of work processes.

Different increases per product

The upcoming price increase of the various applications in Dynamics 365 varies by product. What makes some applications more expensive than others, Microsoft does not disclose.

In addition, due to local regulations, Microsoft is going to increase the prices of all Dynamics 365 applications used by the U.S. government by 10 percent on Oct. 1. On Oct. 1, 2025, there will be another smaller price increase for this particular customer. This latest price increase should bring costs in line with other business users.

Microsoft also refers to a Release Planner for Dynamics 365 in which business users will get a look at upcoming updates. These include about 11 new updates that will be rolled out starting this month.

More vendors raise prices

Microsoft is not the only provider of cloud-based applications that has raised its prices. Salesforce, for example, announced in July that it was raising prices for nine different products. This price increase went into effect just a month later, which significantly hurt that company’s reputation.

Other companies that threw up prices on their products in 2023 included IBM, Oracle, SAP and again Microsoft itself.

Also read: Price increases destroy Salesforce’s already poor foundation