What are Perpetual Licenses?
Perpetual licenses are the traditional “permanent licenses” for the on-premises version of Microsoft’s ERP software. They allowed companies to purchase a license once and then use it without any time restrictions. This type of licensing was particularly popular with companies that wanted to make long-term investments in their IT infrastructure and did not want to incur regular ongoing costs for software subscriptions. (However, annual maintenance fees are usually still incurred.)
Why did Microsoft decide to end Perpetual Licenses?
Microsoft wants to focus more on the cloud-based subscription model. The decision is in line with the company’s long-standing strategic focus on the cloud. The cloud subscription model offers continuous improvement of features and easier scalability. It also ensures that companies always remain at the cutting edge of technology without having to actively worry about expensive updates and upgrades.
Do you have Perpetual Licenses but want to switch in the Long Term? Here are some Alternatives!
Companies that still work with perpetual licenses have several options available to them:
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Switch to Business Central SaaS (cloud)
The cloud subscription for Business Central offers many advantages, such as regular updates, scalability, high security standards, access to modern AI functions and low administrative overhead. It is the ideal choice for companies that want to use the latest features and aim for a flexible user experience.
Cleaning out for Migration to the Cloud How to get rid of
old Customizations and
ensure your Ability to innovate
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On-premises solution
Those who still prefer an on-premises solution can continue to use Business Central in a local version. However, you should note that this will receive less support in the future and that higher costs for maintenance and upgrades may be incurred.
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Hybrid models
Another option is to implement a hybrid model, in which certain parts of the infrastructure are operated in the cloud while others remain on-premises. This can be a transitional solution for companies that do not yet want to migrate completely to the cloud.
If you are currently considering switching to the cloud, the “Bridge to the Cloud 2” promotion may be of interest to you. In addition to the existing advantages of the cloud, this promotion also offers financial benefits.
Bridge to the Cloud 2: 40% Discount on Business Central Online Licenses for Three Years - and continue to use your existing On-premises System
Microsoft’s “Bridge to the Cloud 2 (BTTC2)” promotion is ideal for you if you are currently still using Business Central On-Premises or Dynamics NAV and plan to migrate to the cloud. This makes the transition from on-premises easier and allows you to take advantage of favorable terms.
Eligibility Requirements
You need to have on-premises licenses for Business Central. Moreover, you have not yet purchased any cloud licenses, and purchased your on-premises licenses before September 1, 2022.
Furthermore, the value of the cloud licenses must be at least as high as the annual cost of your active enhancement plan, and you must maintain this value throughout the entire term. If you do not have an active enhancement plan, you will need to pay a retroactive fee to participate.
In addition, you must not have already benefited from the BREP to CSP or Bridge to the Cloud 1 promotions. It is also not possible to switch from other cloud migration programs.
3-year Term with Dual Use - no Annual Maintenance Fee
BTTC2 has a fixed term of three years (from booking date) and cannot be renewed or canceled. While the promotion is running, you benefit from a 40% discount on the list price for your Business Central subscriptions. In addition, the annual maintenance fee (currently 19% of the license value) that applies to perpetual licenses for Business Central On-Premises is waived - it is “converted” into cloud licenses.
And what makes this particularly helpful is that you also have the opportunity to continue using your existing on-premises environment (dual access rights). You will receive a 50% discount on additional on-premises user licenses during the migration phase until the end of 2025. In certain cases, Microsoft also provides free promotional users.
Billing Options
You can choose between monthly, annual or triennial billing. You benefit from price protection throughout the entire promotion period. After the three years have expired, the regular NCE or CSP list prices apply. You can then choose your billing period (monthly, annual, or triennial) again.
You can still take advantage of Bridge to the Cloud 2 until December 31, 2025. From January 1, 2026, to December 31, 2027, you will then have the opportunity to take advantage of the Bridge to Cloud 3 promotion, which offers a 30% discount on your cloud licenses.
- 40% discount on cloud licenses
- Dual use: work in parallel with on-premises and the new cloud environment
- 3-year term: non-renewable and non-cancelable
- Price protection throughout the entire promotional period
- Signup period: February 1, 2023, to December 31, 2025
- Billing: monthly, annual, or triennial
- Eligible participants are existing customers who purchased on-premises licenses before September 1, 2022
If you have any further questions about the promotion, we will be happy to help you.
Microsoft Marketplace Two become One: Microsoft
merges AppSource and
Azure Marketplace
Secure the Future of your Business: switching to the Cloud will benefit you in the Long Term ☁️
Basically, the future belongs to the cloud! The expiration of perpetual licenses is a good opportunity to further develop your corporate strategy in this direction.
We recommend (in the long term) switching to a cloud model to ensure that your company continues to benefit from the latest features and the best technology in the future. If you are currently struggling with the transition, you should consider Microsoft’s Bridge to the Cloud 2 or Bridge to Cloud 3 promotions.
The “Bridge to the Cloud” campaigns are suitable for companies that want to make the transition from on-premises to the cloud smoother and to benefit from financial advantages.