Disclaimer: In this blog post I would like to share my understanding on what is happening when customers no longer pay their bill for Dynamics 365. Please consult with your partner or Microsoft to get the actual and official interpretation.
First some definitions; Most mid-size customers will buy Dynamics 365 through a partner that is a CSP (Cloud Solution Provider). Larger corporations will have the opportunity to buy Dynamics 365 directly from Microsoft through a EA (Enterprise Agreement). The information here is related to the CSP way of purchasing licenses.
When buying Dynamics 365, most customers will receive a monthly bill from their CSP partner. But the great thing about the CSP, is that you may adjust the number of users for the next period. Dynamics 365 have a low limitation of 20 licenses, but above this the customer may make changes.
But keep in mind that even though you receive a bill for the upcoming month, there is still a commitment for the base subscription period. For Dynamics 365, the subscription period is normally 12 months. I think I finally understood why the name is Dynamics 365; The reason may be that you have to buy it for at least 365 days
As stated earlier the customer normally receives a bill each month. But what happens when the customer stops paying the bills?
1. Well first the normal procedure is that the customer is notified by their CSP that payments are missing that follows the normal procedure.
2. The next step is that the CSP partner will suspend the subscription. This is done when by changing the status on the subscription to “Suspended”.
3. When a subscription status is changed to “Suspended”, this puts the subscription into a “data retention” mode. This means that end-users will not have access to any services, but administrators will still have access to the data associated with this subscription.
4. At the end of 60 days after a subscription is Suspended, the subscription is moved to a “de-provisioned” state. At this time, all data is removed.
The conclusion is therefore; Pay you bill or lose your data.
When I think of it…… it’s just like paying your electric bill.. no pay…no power.