News: Microsoft’s Price Hike to D365 Data Storage

What’s Changing & How to Prepare 

Author: Glenn Powell | Technical Director | Formus Professional Software | Nov 2020
Cloud download icon with warning of D365 data storage price increase overlaid

Does your Business have Microsoft Dynamics 365 customer relationship management (D365 CRM) software?

Do you use the Common Data Service (CDS recently renamed Dataverse) storage facility it to store your database, file, and log information?

We are encouraging all organisations using Dynamics 365 to check their licensing plans, contact their software partners and calculate their renewal costs while there's still time to plan how to save money on your data storage after the change.

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What is Changing?

There are 3 different types of storage: database, file, and log, all with slightly differing new prices. This is a flavour of things to come when you next renew your licence no matter what type of data you are storing in CDS*.

Previously, a Dynamics 365 customer would receive a standard 10GB of storage for holding all database records, attachments, and log files. For every ten user licences that were purchased, the business would then receive a further 5GB of storage. Additional space required in excess of this was charged at £3.80 per GB, per month.

Within the new pricing model, different types of storage have been split out. For example, 20GB of file storage comes as standard, with a further 2GB made available per fully-licensed user. Additional storage costs £1.50 per GB, per month.

However, for database records, while 10GB still comes as standard, a mere 250MB is now added on per licensed user, with every additional GB charged at £30.20 ($40).

It has already begun for some organisations. Details of the higher storage costs were quietly released by Microsoft last year.

Businesses with a Dynamics licence that haven't yet switched to an alternative storage solution will be automatically transitioned to the new pricing plan on December 31st 2021, being applied upon the individual business's next annual licence renewal.

For organisations who are looking at or just in the process of implementing a Dynamics 365 customer relationship management system or other D365 product it’s a much simpler and reassuring tale.


*Note: D365 AX and BC storage is not affected by Microsoft’s price change and as they work differently with data.

New Dynamics 365 Customers Thinking of Getting D365

For organisations who are looking at or just in the process of implementing a Dynamics 365 customer relationship management system or other D365 product it’s a much simpler and reassuring tale.

When planning where to store your D365 data you haven't got to worry about rushing into things. Make data storage a slightly bigger consideration that you might have done before and look at your options rather than just going for the standard option.

Seek advice, ask your software partner or get a Microsoft consultant to point you in the right direction. You don't want your new software to be too affected by the way you set up the data handling. Some solutions to this problem might be more cumbersome than others.

An easy option would be to use a service like FlexVault to take care of data storage for you.

Otherwise consider following the options in the section below around data cleansing and archiving, without using a specially designed automated system, to reduce how much space you will need to pay for.

Exsisting Licence Holders - What Can You Do?

First off, don't wait for your next licence renewal date. Investigate now and give yourself plenty of time to seek advice and look at your options.

  • Evaluate - Check your data storage size
    How much are you currently using?
    What do you project you might need to see you through the next year? Giving yourself a good overview of where you are now and where you think you might be over 12 months will help. You can calculate from there a rough idea of what your costs you could be facing should you have no choice but to stay put for a time.
  • Split or move your data
    Bring your storage requirement size down by deleting and de-duplicating as much data as possible. With GDPR rules in force now it may even be a good time to kill to birds with one stone and review expired permissions?
    This might only be a short-term solution, as this data may increase again in time if the business does not fundamentally change the way it stores data.
  • Cleanse & clean up your data
    Think about what really needs to stay within the Dynamics environment and what other items - typically less important records - could be stored somewhere else on a far cheaper storage platform.
    If you haven't renewed your licence yet it isn't too late to move your data.
    The challenge lies in making sure that the two platforms are still seamlessly linked, so there is little or no noticeable effect on the end-user experience. It is possible to achieve but you may want to seek advice on how to do this
  • The easy fix
    We knew this was coming so we started work on a solution.
    We are currently working on a product (dubbed FlexVault), to directly circumvent this problem, with the aim to drastically reduce the new fees, while keeping the user experience as close to unaffected possible. The first of our clients to request it are beginning to plan implementation now. This could quite literally save you hundreds if not thousands of pounds.
    Ask us about FlexVault...

Where can I find more information?

We will always use the best products and services available to us and Microsoft's high-quality products and services will always be our first choice, however we also know that the business and charity organisations using these products need our support.

As a Microsoft Gold Partner we keep an eye on Microsoft updates to decipher what they might mean in real terms for business. We can certainly help you.

However if you have the time and the in-house resource, some further information can be found within the Microsoft admin power platform documentation itself, under new capacity storage model.

You may also find it helpful to check out their documentation on freeing up storage space.

Do not hesitate to contact us for advice or information.

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