Streamlining License Management for Dynamics 365
Streamlined User License Management in Dynamics 365
Starting soon, Microsoft is set to enhance the management of user licenses within Dynamics 365. These changes will provide administrators with improved tools for overseeing license assignments and ensure a clearer understanding of user needs.
Upcoming Changes to License Management
License Usage Reporting
Beginning April 30, 2025, administrators will get access to an upgraded reporting system in the Power Platform admin center. This feature will give detailed insights into the number of available licenses and the users who have been assigned licenses across various security roles.
For users who currently do not have an assigned license, an in-product notification will prompt them to connect with their administrators for license requests. This proactive approach is designed to promote compliance and simplify administrative tasks.
Mandatory License Assignment
From August 30, 2025, it will become essential for all Dynamics 365 customers to assign licenses directly through the Microsoft 365 admin center. The applications that will require assigned licenses include:
- Supply Chain Management
- Supply Chain Management Premium
- Project Operations (within Dynamics 365 Finance and Operations)
This centralization aims to enhance visibility and governance around the licensing process, ultimately streamlining administrative actions.
Key Dates and Recommended Actions
Important Dates
- April 30, 2025: Launch of enhanced license reporting.
- August 30, 2025: Implementation of mandatory license assignment for specific Dynamics 365 applications.
Recommended Steps
Organizations are encouraged to take proactive measures to ensure a smooth transition. This includes:
- Review the “Finance and Operations User License Level Overview Report” in the Power Platform admin center.
- Start assigning Dynamics 365 licenses via the Microsoft 365 admin center immediately.
By preparing in advance, organizations can help avoid potential disruptions that may arise from users lacking assigned licenses.
Enhanced Reporting Features
In the Power Platform Admin Center
Administrators can now access detailed license reporting to monitor required seats. This report includes information about assigned seats from the Microsoft 365 admin center, along with suggested actions to close any gaps in license assignments.
In Dynamics Lifecycle Services (LCS)
The same license reporting will also be integrated into LCS for administrators, ensuring consistency and unity in reporting across different platforms. This integration will allow both internal administrators and implementation partners to access the same licensing data.
In-Product Reporting
With the recent updates, User Security Governance now offers enhanced visibility and control within Dynamics 365, available in public preview. Full features are expected to roll out by July 2025, enabling administrators to manage licenses more effectively.
Empowering Administrators with Tools
Microsoft remains dedicated to equipping organizations with the resources they need to thrive in a competitive environment. These changes to license management are designed to simplify administrative processes and allow businesses to focus on delivering value to customers.
For those interested in centralized license assignment, explore the guide to assigning Dynamics 365 licenses through the Microsoft 365 admin center and check out the recent FastTrack Tech Talk on User Security Governance for further insights.
By implementing these updates, Microsoft seeks to make license management more straightforward, ensuring organizations can continue to use Dynamics 365 effectively.
