External Connector for SPLA/Hosted CRM
Many of my customers are aquiring Dynamics CRM through the Service Provider License Agreement (SPLA) which more commonly is known as Partner Hosted. We are working closely with Hermelin IT-Partner (http://www.hermelin.com/) for this service as they are an excellent provider of IT-infrastructure.
One of the licensing issues I have been discussing with Hermelin IT-Partner and Crayon, a Swedish Microsoft Licensing specialist partner, is how the External Connector is licensed for SPLA.
The External Connector is, as many of you probably know, a special license that is required to license external users to work with data in Dynamics CRM, without working with the normal GUI (requires full license). Despite the name, it just a license form and does not contain any code at all.
Typical scenarios where the external connector is required is for customer portals, case registrations by customers etc. where the portal or other software works directly with the CRM webservice or database. I have had extensive discussions with Microsoft concerning implicit information, like data warehouses and how these are to be licensed but have as of now only got the answer that as long as there is some interaction with the data, like drill-down, a license is required. If there are many users, the Application Platform Agreement is what is recommended. The external connector cannot be used in internal scenarios as it explicitly only gives accessrights to non-employees and the similar.
For an on premise solution, the external connector is typically priced in the area of €25 000 or $30 000 which is quite hefty and a very large pricetag for a small company making it more or less impossible to buy.
So, when working with Dynamics CRM licensed in SPLA, how does the license agreement work? Crayon sent us the following sections concerning this:
So, surprise, you don’t need it at all! This is something I think is great since that really opens up the possibilities of really leveraging the full power of Dynamics CRM for our customers even the smallest with only a couple of users.
It also has some other implications, namely that a customer that currently licenses Dynamics CRM as on-premise via Volume Licensing or by renting the licenses and currently are using the external connector, really should start looking at moving to partner hosted since that will remove the quite hefty cost of the external connector. It typically also comes with a SA of about 1/3 the cost per year so it is an ongoing cost.
I hope that Microsoft will be harmonizing this with the rest of the “power of choice” so that it will be more reasonably priced also for on-premise solutions.
CEO, Chief Architect and co-Founder at CRM-konsulterna AB