Cost is a crucial factor when choosing an ERP/CRM solution. This blog explains the cost when you implement Dynamics NAV, which is now available as Microsoft Dynamics 365 Business Central.

Broadly there are three options for implementing Dynamics NAV: on-premise, cloud, or hybrid. Read on to find out the expected costs for the on-premise and cloud options. The cost of a hybrid model will depend on various factors, but the information below should help you estimate the required investments.

Since Dynamics NAV is now available as Microsoft Dynamics 365 Business Central, you may want to skip the cost breakup of NAV and explore the options for Business Central.

Dynamics NAV on premise

Dynamics NAV on premise implementation option helps you host all your data and applications on servers owned and operated by your business. You should choose an on-premise solution if:

  • You have a single office and few users
  • The team works from office and access to data remotely via mobile devices is not needed
  • Investments in existing servers and other hardware require you to keep them as-is
  • Existing team members are capable of working with Dynamics NAV

Cost of Dynamics NAV on premise

A starter pack of Dynamics NAV can cost you around $5,000. If you want additional functionality like warehousing and manufacturing, you will need to buy the Extended Pack that will cost around $10,000. The actual cost will depend on the number of users and type of users you would like to add.

The per user cost of NAV will be about $3,000 for users who need full access and $600 for users who need limited access.

Dynamics NAV in the cloud

Dynamics NAV was originally intended for an on-premise environment. However, with advances in technology and the realization of the benefits of moving to the cloud, Microsoft adapted the solution for the cloud environment.

You should choose the cloud version of Dynamics NAV if:

  • You have multiple offices and business entities and want a consolidated view of the business
  • The cost savings of hardware and other overheads support the move to the cloud decision
  • You want to optimize resource allocation by redeploying IT personnel to other strategic initiatives
  • You prefer a subscription-based pricing model to plan budgets more efficiently

Cost of Dynamics NAV in the cloud

Hosting your data and applications in the cloud gives you the flexibility of choosing a subscription-based pricing model. Since you pay for users on a monthly basis, you will not only be able to predict the cashflow requirements and plan budgets but also have the flexibility to only pay for what you use and optimize your costs.

The cost of Dynamics NAV per user can start from $185.

Dynamics NAV is now available as Microsoft Dynamics 365 Business Central, which is the nest big step in the evolution of the solution. You may want to know about the pricing of the new solution and consider taking a step up.

Cost of Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central for growing businesses comes with four offerings: Business Central Essentials, Business Central Premium, Customer Service Professional, and Sales Professional.

Business Central Essentials costs $70 per user per month. Business Central Premium costs $100 per user per month. Customer Service Professional costs $50 per user per month for the first application and $20 per user per month for every additional application. Sales Professional will cost $65 per user per month for the first application and $20 per user per month for every additional application.

*Costs are indicative as of June 2022

Want to know more about the benefits of upgrading to Microsoft Dynamics 365 Business Central?

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