Choosing the Deployment Model
One of the advantages of Dynamics CRM is that you may deploy your solution on premise at your office, in the Microsoft cloud, or at a hosting facility. Your choice of deployment options will affect the licensing or subscription cost.
You can start here: http://www.microsoft.com/en-us/dynamics/crm-purchase-support.aspx The comprehensive source is here:https://technet.microsoft.com/en-us/library/hh699677.aspx
Dynamics CRM Online
Cloud-hosted Dynamics CRM is the easiest deployment model to deploy and to price.
You can choose from the following plans:
You can mix subscription types within your organization. Subscriptions cover both hosting and the associated software licenses. This deployment model is rapid -- Microsoft manages the infrastructure and you don't need to install anything on your servers. It is flexible and quite scalable, so you can add (or subtract) users as your needs change. In the short run it is also the least expensive option because it doesn't require any hardware acquisition or server licenses. If you deploy with Dynamics CRM Online, you will automatically receive all software updates which will be installed by Microsoft.
You can purchase additional storage for Dynamics CRM Online, so you should estimate the storage you will need to get an accurate cost estimate.
Microsoft offers a U.S. government version of their cloud. Government agencies and government contractors are eligible for the government cloud.
Microsoft offers promotional pricing on Dynamics CRM from time to time and also cost savings on bundles with services such as Office 365. For instance, you can add Dynamics CRM Professional to Office 365 for $50/user/month.
The second option is hosted deployment. Many companies will host your solution for you on their server facilities. Hosting may be shared (with other organizations) or dedicated (you have the server to yourself). Microsoft offers Service Provider (SPLA) licensing for its products which allows the license to be bundled into your monthly hosting bill. If you choose dedicated hosting, you may use your own licenses purchased in the same way as for on premise deployment.
On Premise Deployment
The third and most common option is on premise deployment --the most complicated licensing scenario. This means that you will install the software at your own facility on hardware that you provide. Microsoft offers software maintenance under a program called Software Assurance that includes updates to the products you purchase. Your organization must manage the servers and is responsible for backups and installing updates.
Dynamics CRM is licensed based on named users or device licenses, so the first step in calculating costs is to count your users. First, count internal users that are within your organization. The most common licensing approach is based on named users. For instance, if your department has 500 people and all of them will be using Dynamics CRM, you would buy 500 client access licenses (CALs). Microsoft also offers device CALs, so two or more people who are non-concurrently sharing a workstation could use just one CAL. This makes sense if you have shift workers or call centers that operate around the clock.
Next, count how many Dynamics CRM servers you will need. How many servers are needed to support the size of your solution? How many environments will you need, such as development, test, staging and production? Three or four environments are typical for enterprise solutions.
Your reseller is best source for software pricing, and can create a quote based on your volume license agreement. If your organization has an enterprise agreement for Microsoft products, it will offer the best prices.
For on premise deployment, you may also need licenses for related products such as Windows Server, SQL Server, and Microsoft Office.
After you nail down the hardware and software, the more challenging part is estimating the cost of professional services.
If a similar solution has already been implemented, this can be the shortest path to an estimate. For instance, my company InfoStrat implemented a Dynamics CRM solution called Stimulus360 for about 19 clients, so by the time the third or fourth client approached us, we had a pretty solid idea of the cost elements and the variables in order to estimate the project. The question to ask is whether your requirements will be different from other clients. Ideally, you could examine the features of the solution and map them to your requirements, highlighting gaps where new features would be needed.
What about CRM customizations? The least expensive solutions usually are for the most common CRM scenarios, such as sales force automation, customer service, and marketing (or outreach). These scenarios match the out-of-the-box functionality of Dynamics CRM well to begin with. You are likely to require some additional data elements and reports, and nearly certain to need some workflows to match your business processes, but will not need too many new fields or entities.
Here are some of the key items to count and characterize:
Identify all the data elements you need to track, and map them to the Dynamics CRM data model. This exercise will show which attributes you need to add to existing entities and which new custom entities you will need to create.
Examine the user interface and determine whether you need customizations to the look and feel. If you want distinct forms for each user role, for instance, the cost of the implementation (and subsequent maintenance) will increase.
Enumerate and specify all the reports you will need. Try to categorize them by complexity to simplify estimation. We usually break them into simple (lists), moderate (some aggregation) and complex (multi-entity and more complicated calculations). Every Dynamics CRM implementation we have done requires some custom reports. Be sure to take a look at Advanced Find to see if it can satisfy any of your reporting requirements.
Determine which dashboards you will need. Dashboards combine business graphs with views into records. Dynamics CRM comes with standard dashboards for sales, marketing and customer service, but these may not make sense for xRM solutions.
Specify the workflows that will be created. Again, categorize them into groups based on the complexity of the workflows. If your workflow has a large number of exceptions you may want to reconsider whether it should be automated at all.
Armed with these lists and specifications, you can approach a Dynamics CRM expert and get a realistic idea of the cost. If you are familiar with Dynamics CRM yourself, you can use these metrics to create your own estimate. For instance, you may want to plan four hours for a simple report and twenty hours to create a complex report.
The cost of integration can only be determined with a thorough understanding of the systems to be integrated and the nature of the integration that is required.
Here are some of the details that can help derive a better estimate for integration:
Provide documentation for the systems to be integrated, including the data models and options for integration such as web services.
Define functional requirements for the integration. Spell out how the scenario would work, where the data would be entered, how it is processed in each system, and where it ends up.
Choose the direction of the integration (one-way or two-way). Which is the authoritative system in the event of a conflict?
Spell out any tools that you would prefer for data integration. Do you own middleware or enterprise application integration software that would help.
Dynamics CRM provides a modern, web services interface to allow integration. You may want to assign the integration task to developers who are proficient in the other system with which you are integrating, especially if it uses a less open and modern architecture.
No software implementation is successful without adoption, and most enterprise solutions require training in order to be adopted. Training is often shortchanged in Dynamics CRM implementations.
You should include training in your project plan, and start work on training materials as soon as use cases are created for the solution. Analysis, development, testing, and training all should be tightly connected so you end up training to the requirements and usage scenarios you have identified.
Several options are available for training on CRM, including:
Free training videos. Microsoft and its partners have published hundreds of free training videos on Dynamics CRM that are available on YouTube and microsoft.com. These are great for getting a quick response to a specific "how do I" question.
In terms of cost, classroom training at a training center is several hundred dollars per person per day (often about $500). In person custom training is sometimes charged based on the number of students or at a flat rate of $2,000-3,000 per day including materials. Online training materials and training subscriptions are often less than $100 per person. Remember that the generic training materials are less expensive, but not tailored to your solution or implementation. In general, these materials are good for IT professional rather than end users.
A good place to start for online resources is http://crm.dynamics.com/en-us/support-overview
You need to understand your users in order to choose the correct training approach. Is traditional classroom training effective? How much time can users spend in training with their other job responsibilities? Will they be overloaded with information in a multi-day training session?
In addition to end user training, you will want to provide training for system administrators and other IT professionals. You may also want to train developers for maintenance tasks and enhancements to the system. You may need to customize some materials so they related to your particular implementation, but advanced admin training materials are readily available.
Don't wait until the end of your implementation to begin training. User acceptance testing is a great time for initial training of a subset of users. An incremental rollout or a pilot is also a great chance to refine your training approach before it is too late. Refresher training is also a good item to include in your budget. It can help renew enthusiasm for the system and improve user satisfaction.