Unveiling the Challenges with Microsoft’s New Storage Model for Dynamics 365

Dynamics 365 is a powerful suite of business applications designed to streamline operations and enhance productivity. However, Microsoft’s recent implementation of a new storage model for Dynamics 365 has introduced significant challenges, with the most glaring issue being a dramatic shift in costs. In this blog post, we delve into the implications of this change and highlight how Beringer Technology Group can assist you with a cost-effective solution.

The New Storage Model: Microsoft has previously offered a storage model in which all data in your Dynamics system is pooled. Additional storage could be added at $5/GB per month if over available data allocations. Effective July 1, 2023, Microsoft’s New Commerce Experience licensing program will be mandatory for all commercial customers. Storage is now tracked at the Database, File, and Log File level within Dynamics 365. Database storage starts with 10GB and increments .25GB for each User Subscription License (USL) that is purchased. File storage starts 20GB and increments 2GB per USL purchased. Log File data starts with 2GB and does not increase with each USL purchased. To stay compliant and maintain full system functionality, customers must not go over available storage limits. If storage is exceeded in any category, additional GBs of storage must be purchased as soon as possible.

The Dramatic Cost Increase: Under the new model, customers are required to purchase capacity in 1GB increments (billed monthly). Database, File, and Log File storage cost $40/GB, $2GB, and $10/GB per month, respectively, for additional data in each category. This model has led to a dramatic increase in costs for many organizations. Businesses that previously paid $5 per GB for Database storage are experiencing cost increases of 700% for storage.

The Solution: Beringer Technology Group offers a data archive solution that can greatly reduce your storage costs. As Database storage is often the main culprit of storage issues, our solution focuses on pulling Database data to a virtual entity to reduce storage. Since virtual entities use Azure storage (which is far cheaper than Dynamics storage), overall costs are reduced while still keeping the data accesible to your team. You can learn more about reducing storage here (Reducing Microsoft Dynamics 365 Storage Costs Power Platform (beringer.net)).

While Microsoft’s new storage model for Dynamics 365 aimed to streamline pricing and resource allocation, it has introduced a host of challenges for organizations. The dramatic shift in costs, lack of flexibility, and unpredictability in financial planning have all contributed to a complex and difficult situation. Contact Beringer Technology Group to learn more about how we can assist in data management and help with reducing storage costs in Dynamics 365.

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We love to implement Microsoft Dynamics 365 and Power Platform solutions here at Beringer.  We’ve been working with Microsoft Dynamics since its inception, and we’re always finding innovative ways to implement the latest tools and help automate business processes. Give us a call to

Beringer Technology Group, a leading Microsoft Partner specializing in Microsoft Dynamics 365 and CRM for Distribution also provides expert Managed IT Services, Backup and Disaster Recovery, Cloud Based Computing, Email Security Implementation and Training,  Unified Communication Solutions, and Cybersecurity Risk Assessment.