Multiplexing. How can one word cause so much confusion, chaos, and fear, especially when it comes to Dynamics 365 licensing?

Understanding Dynamics 365 licensing can be daunting. With so much to learn and grasp, it’s no wonder that multiplexing often becomes a source of anxiety. That’s why we’ve put together a simple guide to help clear up the multiplexing confusion.

What is Multiplexing?

Multiplexing refers to the use of tools to:

• Combine connections

• Indirectly access data

• Reduce licensing costs

It’s the last point that usually causes trouble.

Let’s break it down:

1. Users and Devices Always Need the Right Licenses: Every user and device interacting with Dynamics 365, whether directly or indirectly, requires the appropriate licenses. Multiplexing does not reduce the number of licenses needed. This fundamental rule applies universally, ensuring compliance and optimal performance.

2. Indirect Access: Multiplexing often involves scenarios where users indirectly access data. This could be through third-party applications or automated processes. It’s crucial to remember that indirect access still necessitates proper licensing.

3. Combining Connections: Tools that combine many connections can streamline operations. But, they do not remove the need for each connection to be properly licensed. View the efficiency from multiplexing as an operational improvement and not as a licensing shortcut.

Scenarios to Illustrate Multiplexing:

To clarify, let’s look at a few scenarios from Microsoft. They help show what is and what isn’t multiplexing. This assumes that you are fully licensed for both products.

Scenario 1:

• Action: You use Power Platform to export data from Dynamics 365 and send it to your coworkers. Your coworkers edit the data in Power Platform, and it is imported back into Dynamics 365.

• Multiplexing? Yes.

• Why? Your coworkers are indirectly accessing and modifying Dynamics 365 data through the Power Platform. Each of them will need both a Power Platform and a Dynamics 365 license.

Scenario 2:

• Action: You manually export data from Dynamics 365 and upload it to a shared drive or cloud storage. Your coworkers access and edit it directly from the shared location. You then manually import the updated data back into Dynamics 365.

• Multiplexing? No.

• Why? This is a manual data transfer. The interaction occurs outside Dynamics 365 and Power Platform. So, your coworkers do not need extra licenses.

Scenario 3:

• Action: You extend Dynamics 365 using Power Apps, allowing your coworkers to access and update Dynamics 365 data through your apps.

• Multiplexing? Yes.

• Why? Power Apps provides indirect access to Dynamics 365. Each user or device interacting with Dynamics 365 data through Power Apps needs the appropriate Dynamics 365 and Power Platform licenses.

Scenario 4:

• Action: You extend Dynamics 365 with Power Apps and create standalone apps that are unrelated to Dynamics 365 in a separate environment.

• Multiplexing? Yes and No.

• Why? Power Apps connected to Dynamics 365 constitute multiplexing. Standalone Power Apps in a separate environment do not. Users interacting with Dynamics 365 through Power Apps need both Dynamics 365 and Power Platform licenses. Users using only standalone Power Apps will only need Power Platform licenses.

Still Trying to Wrap Your Head Around It?

Here is a good rule of thumb: If you are interacting with Dynamics 365 data, you likely need a Dynamics 365 license.

Understanding multiplexing in Dynamics 365 licensing can be tricky, but it’s crucial for ensuring compliance and optimizing your investment in Microsoft’s powerful business tools.

We hope this guide will help demystify multiplexing and equip you with the knowledge to navigate licensing decisions confidently.

Resources:

• Microsoft Licensing Brief
• Dynamics 365 Licensing Guide (See Multiplexing on page 14)
• Microsoft Multiplexing Definition:

  “Multiplexing can be defined as hardware or software that is used to pool connections, reroute or indirectly access information, or reduce the number of devices or users that directly access or use the Product. It can also be classified as a way to reduce the number of OSEs, devices, or users the Product directly manages.

  A key point to note, sometimes referred to as “pooling”, Multiplexing does not reduce the number of licenses of any type that a customer needs for their solutions.”