Microsoft Dynamics 365 CRM is a powerful tool from Microsoft that helps businesses to manage their sales, marketing, customers, and other services effectively. How organizations improve sales processes, manage customer relationships, and enhance customer service can be transformed by implement Microsoft Dynamics CRM. However, it is essential for businesses to consider the cost factor before taking such an important step.  

Some of the factors that may influence the implementation cost for Microsoft Dynamics 365 CRM are:

Implement Microsoft Dynamics CRM type and number of applications that need to be developed

Different applications are offered by Microsoft Dynamics 365 CRM to help businesses to look into various aspects of customer relationship management. They are: 

  • Sales: To manage your sales pipeline, automate sales processes, track leads, and improve sales performance. 
  • Marketing: Generate leads, nurture prospects, create and execute campaigns, check results, and improve ROI with marketing. 
  • Customer service: Boost customer satisfaction, automate service workflows, offer omnichannel support, and resolve issues quickly. 
  • Field service: Optimize service scheduling & dispatching, offer proactive assistance, manage field workforce, and boost the rate of first-time fixes.

Here you can select applications as per your business needs. You can either choose a single application or go for a package. The cost of each application or the package will affect the implementation expense as it depends on the licensing model you choose.

Users and their roles by Implementing Microsoft Dynamics 365 CRM

The next thing that affects the cost of implementing Microsoft Dynamics 365 CRM is the number of users who will have access to the system and their roles. Based on the roles, the level of access and functionality will be set. Microsoft Dynamics 365 provides two types of user licenses to be used in the implementation and they are team member licenses and full user licenses.  

As compared to a team member license, a full user license is expensive as it offers complete access to the features and functionalities of an application.

Level of customization and integration needed

The flexibility of Microsoft Dynamics 365 CRM helps you implement it into your business process as per your need. However, it is possible to implement more customization to it if your business requires it. Such a level of customization and integration can be expensive.  

Moreover, if your customization and integration requirements are complex then you cannot simply achieve it with the features and built-in tools offered by Microsoft Dynamics 365 CRM. You will have to hire a developer or a consultant for the job. So based on the resources included and the time required, the cost of customization and integration will increase too. 

The deployment models

You can deploy your solution in two ways i.e., on-premises and on the cloud. 

With the on-premises option, your system will be hosted on your servers or on a third-party hosting provider. This means you will have to install and maintain your set of software and hardware. You will have to bear the license fee for the applications you use and also pay an annual fee to maintain your system. 

When you go for cloud deployment, your business solution will be hosted by Microsoft on its servers, and you just have to pay a monthly or annual fee for the applications based on the number of users accessing it. 

Support and maintenance

For the optimal performance of your business solution, it is important to go for support & maintenance service. The kind of contract you have with Microsoft and the level of service you need for your business will help you know the expense of support & maintenance services you require for your business solution.


This clearly means that there is no single answer to how much it will cost to go ahead with Microsoft Dynamics 365 CRM implementation. The cost of implementation depends on the requirements of your business and your preferences. However, understanding the factors that may affect the whole expense of Dynamics 365 CRM implementation will help you make the right decision that best suits your business needs.