Wednesday, November 17, 2021
Reading time: 4 minutes
Since April 2021, Microsoft announced the upcoming Publisher program launch. Microsoft ISV Partners were alerted that Business Central On-Premises solutions will have to maintain Cloud requirements, be certified for SaaS, and register on AppSource, or they will face additional fees.
Further details followed during the Direction EMEA event this year, where Kurt Juvyns, Principal Program Manager at Microsoft, introduced fees for sales of non-Universal Code offerings to new customers from 2023 onwards. Read on to find out more about what this means for you, your customers, and your product roadmap.
Universal Code offerings
Universal Code offerings are defined as Cloud-optimized Extensions for Business Central. The code is “universal” in that it can be implemented everywhere: on Business Central Online, On-Premises or partner hosted. Universal Code can be listed on Microsoft AppSource and help reach more new customers and connect directly with decision-makers. It is equally important for existing customers, who want to see a vision of how their Microsoft Partners will support them in their digital transformation. In addition, Partners can bundle Universal Code with other Microsoft Cloud services to generate customer stickiness and increase market share.
Above all, Universal Code offerings replace legacy programs. In 2022, Microsoft will fully deprecate the Registered Solution Program (RSP) and the Certified for Microsoft Dynamics program (CfMD) and move the legal components towards the Publisher agreement in the Partner Center. Partners will be asked to agree to the new terms in 2022. You can resell Universal Code offerings through any available licensing mechanism without having to pay RSP program fees or license the non-Universal Code modules.
Reselling non-Universal Code offerings
Non-Universal Code offerings are defined as Business Central solutions that are not optimized for Cloud. From 2022 onwards, sales of non-Universal Code offerings to new Business Central On-Premises customers will require customers to license two additional modules:
- Module “Implemented code is not in Extensions”
If the implemented partner code includes base application modifications, this module will have to be licensed.
- Module “Implemented code is not Cloud-optimized”
If the implemented Extensions target On-premises, this module will have to be licensed.
To remain competitive and relevant to customers, Microsoft ISV Partners are strongly encouraged to convert their solutions into Cloud-optimized Extensions. Customers licensing a complete Universal Code architecture will not be required to license the non-Universal Code modules outlined above.
Non-Universal Code fees
The fee for non-Universal Code modules will start at 0 USD per full user per year in 2022 and will increase over time. For the module “Implemented code is not in Extensions” the increase starts from 2023 onwards, and for the module “Implemented code is not cloud-optimized” the increase starts a year after that. For pricing details, please check “Business Central “Cloud-Optimized Extensions” Initiative” pre-release documentation.
Keep in mind that the use of module “Implemented code is not in Extensions” will also require module “Implemented code is not Cloud-optimized”.
What about your existing customer base?
Existing customers are not required to license the non-Universal Code modules in their current configuration. They can freely add and remove users and first-and third-party functionality.
However, if an existing customer transitions to Dynamics 365 Business Central On-Premises on or after April 1, 2022, the non-Universal Code modules will be required if the implemented Partner code is not Universal Code.
What are your options?
If the solutions you resell are already transformed into Universal Code, you don’t need to take additional steps, apart from publishing your offerings on Microsoft AppSource, if you have not done so.
However, if in 2023, your solution will not be Universal Code, you can either resell the non-Universal Code modules or avoid reselling the non-Universal Code modules by refactoring your legacy solutions.
We at 1ClickFactory strongly advise you not to delay doing this work, and to consider reaching out to us for help. We can help to create a transition plan to take your business from On-Premises to Cloud-based, and support you along every step of the way. As a Microsoft appointed ISV Development Center, we can cover your full Dynamics Add-on product lifecycle, from development to go-to-market strategies, and ongoing support. 1ClickFactory’s “Ready to Go” Activate and Accelerate Program is designed specifically to help Microsoft ISV partners to accelerate the transition to Business Central Online and Microsoft AppSource.
In addition, consider “Business Central “Cloud-Optimized Extensions” Initiative” pre-release documentation for your guidance.
Don’t waste time, act today! Book a FREE consultation online with 1ClickFactory and we’ll do our best to help you.