Understanding Microsoft's Universal Code Initiative and Its Impact on Business Central Customers (2024)

Introduction

In the world of technology, things are always changing, and businesses are constantly seeking smarter ways to use the cloud to boost their efficiency. To meet this demand and empower businesses with seamless cloud integration, Microsoft introduced the Universal Code Initiative (UCI) in 2020. Dynamics 365 Business Central (BC) customers find themselves at the forefront of this transformation, as UCI not only reshapes licensing requirements but also introduces tangible costs. In this comprehensive article, we will delve into the complexities of the Universal Code Initiative, explore its implications for businesses, and shed light on the concrete costs associated with this transition.

Understanding the Universal Code Initiative

The Universal Code Initiative, unveiled by Microsoft in 2020, embodies a clear mission: to optimize customer solutions for effortless integration with the cloud. At its core, this initiative mandates that BC customers acquiring licenses after October 3, 2022, must adhere to new licensing conditions under specific circ*mstances. These conditions come into play when non-cloud-ready code is utilized for customizations, extensions, and add-ons (condition a), or when such code isn't implemented as an "Extension" (condition b). It's important to note that UCI doesn't impact customers who continue to use Dynamics NAV or BC licenses obtained before the aforementioned date.

Impact and Potential Costs for Affected Customers

For businesses that fall under the umbrella of the Universal Code Initiative, costs associated with non-universal (non-cloud-ready) code will gradually increase. The extent of these costs hinges on two factors: whether the code is implemented as an Extension (Scenario 1) and whether the implemented code is optimized for cloud use (Scenario 2). Regardless of the specific scenario, both modules must be additionally licensed in affected customer setups. If only one scenario applies, expenses are incurred per Full User of the respective module.

Understanding UCI Fees

An integral aspect of the Universal Code Initiative is the introduction of fees associated with licensing additional modules. These fees are levied per module, per Full User, and per year, as detailed in the table below:

These UCI fees progressively increase annually for each module per Full User. Furthermore, these fees are initiated and escalated in conjunction with the Enhancement Plan renewal.

Ready to Navigate the Universal Code Initiative? Let's Talk!

The Universal Code Initiative introduces a significant shift in the licensing landscape for Dynamics 365 Business Central customers. As the importance of cloud-readiness continues to grow, ensuring your code is optimized for the cloud is pivotal to your business's success.

Don't navigate this transformation alone. Our experts are here to guide you through the complexities of the Universal Code Initiative, help you understand the implications for your business, and provide proactive solutions to ensure a seamless transition. By partnering with us, you can optimize costs, streamline your processes, and embrace the full potential of a cloud-ready future. Check Companial Business Central Universal Code Initiative Knowledge Hub for more information https://companial.com/knowledge-hub/fast-track-to-business-central-universal-code-initiative/

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