Dynamics NAV & Business Central On-Premises Changes in Licensing
from October 2025
at a Glance

Business Central On-Premises and Dynamics NAV: the Most Important Price Changes at a Glance

To give you a quick overview, we have summarized the most important price changes for you:

This overview shows that Microsoft is increasing the costs for its on-premises solutions in various areas. The price change affects not only the initial investment in purchase licenses, but also the ongoing costs for maintenance and rental. The elimination of a specific discount for the use of the Azure platform also indicates a clear preference for other deployment models.

Details on the Enhancement Plan Increase from October 2025

An important change concerns the Enhancement Plan (maintenance contract) for Dynamics 365 Business Central On-Premises and Dynamics NAV. From October 6, 2025, the price for the Enhancement Plan will be increased from 19% to 20%. This is the fourth year in a row that maintenance costs have risen by 1%. This increase applies to both the regular annual Enhancement Plan and the 3-year variant.

Companies that have already invested in on-premises licenses must be prepared for rising maintenance costs as a result of this adjustment. Even without additional users or functional enhancements, the annual costs for the on-premises solutions will increase as a result of the enhancement plan.

License Price Adjustments for Purchase and Rental Licenses from October 2025 in Detail

In addition to the Enhancement Plan, the prices for the actual licenses for Dynamics 365 Business Central On-Premises and Dynamics NAV will also be adjusted. These changes will come into effect on October 1, 2025.

Dynamics 365 Business Central On-Premises and Dynamics NAV Purchase Licenses

Prices for purchase licenses will increase by 10%. This affects both new purchase licenses for Dynamics 365 Business Central On-Premises and Dynamics NAV. A price increase of this magnitude represents a significant increase in initial investment costs for companies opting for the on-premises model.

Dynamics 365 Business Central On-Premises and Dynamics NAV Rental Licenses (Subscription)

The prices for rental licenses (Subscription) will also be increased, in the range of 10 to 14%. This price increase also applies from October 1, 2025 and affects both Dynamics 365 Business Central On-Premises and Dynamics NAV. The range of the price increase could indicate a more differentiated pricing strategy depending on the specific type of rental license or contract terms.

An increase in monthly or annual rental fees has a direct impact on the ongoing operating costs of the companies concerned. The potentially higher increase for rental licenses compared to purchase licenses could be a further indication of Microsoft’s efforts to increase the attractiveness of the cloud model.

Elimination of the “On Azure” Discount

Another important change concerns the “On Azure” discount for rental licenses. This 5% promotional discount for Dynamics 365 Business Central On-Premises and Dynamics NAV rental licenses, which are operated on the Azure platform, will be abolished. This change will also take effect from October 1, 2025 and the removal of this discount will make the use of on-premises solutions in Microsoft’s own cloud infrastructure Azure even more expensive. This weakens the cost efficiency of a hybrid approach and signals a clear preference for the SaaS version of Business Central.

How will the Price Changes affect your Organization?

The announced price changes will impact organizations currently using or planning to use Dynamics 365 Business Central On-Premises or Dynamics NAV in the future.

For existing customers with purchase licenses, this means higher costs for the Enhancement Plan, which will increase long-term maintenance costs. Customers with rental licenses must expect direct price increases in their monthly or annual fees. If the rental licenses are also operated “on Azure”, the previous discount no longer applies, which further increases the monthly costs.

Microsoft’s Strategic Direction: the Path to the Cloud

The price adjustments from October 2025 are another clear step in Microsoft’s strategy to convince customers of the benefits of the cloud-based Dynamics 365 Business Central SaaS solution. Microsoft has formulated the clear goal of convincing all customers of the cloud and is using pricing specifically to increase the attractiveness of cloud services. It is likely that this strategy will continue in the future, which will increasingly call into question the long-term profitability of on-premises solutions.

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What we recommend

If you are currently working with Dynamics 365 Business Central On-Premises or Dynamics NAV, it might be worth considering a switch to the cloud. And if you are planning to use the on-premises solutions in the future, it would be worth considering going directly to the cloud instead. Feel free to contact us if you have any questions on this topic.