Microsoft will role out a new model for Dynamics 365 cloud storage.

From 1 April, Microsoft is introducing a new model for data storage for Dynamics 365 that should make the platform more competitive.

Up until now, each Dynamics 365 tenant had a storage limit of 10GB, with an additional 5GB given per 20 enterprise licences a company holds. When companies exceed this storage, Microsoft levies a flat rate charge per extra GB taken.

From a customer point of view, there are a few issues with this. For a start, Microsoft has been enticing users to take on more and more Dynamics 365 apps, such as PowerApps and other add-ons. While they provide useful expansion of Dynamics 365 functionality, these apps eat into a company’s storage limit.

Secondly, the additional storage costs for Dynamics 365 are expensive at around $10 a month per GB. Not only is this well above standard commercial rates, other Microsoft cloud products such as SharePoint Online come with 1TB of storage. It is therefore not surprising that companies and software providers have found ways of storing data accessed by Dynamics 365 in locations that are external to (and therefore cheaper than) Microsoft’s cloud environment.

Change is therefore well overdue.

The Changes

As of 1 April, Microsoft will restructure data stored in Dynamics 365 into three areas with the following new storage limits per tenant:

Common Data Service for Apps Database Capacity – For database and record data – 10GB

Common Data Service for Apps Files Capacity – For Customer Engagement apps, PowerApps, and any documents, videos or other types of file that a company stores in Dynamics 365 – 20GB

Common Data Service for Apps Log Capacity – Storage for logs, changes, security role updates and access data – 2GB

For each Dynamics 365 Enterprise user licence, there is also an extra 250MB of Common Data Service for Apps Database Capacity. There is also  2GB of Common Data Service for Apps Files Capacity.

The Power Platform will have a report on current storage entitlement and capacity.

Implications

Data changes should entice companies to store more data within Dynamics 365, plus increase their interest in solutions such as PowerApps. It could also make it more beneficial for companies to add additional users, while dissuading them from storing files accessed by Dynamics 365 on systems separate to Microsoft’s cloud.

From 1 April to 31 December, organisations renewing their Dynamics 365 licences will be able to choose whether they move to the new storage setup or stay on the existing model. Personally, we can’t see the value with sticking with the original deal. Any additional capacity required above the new data limits will still be charged at the same rate.

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