Looking ahead to the changes that Microsoft are implementing, we wanted to update you on
everything we know so far.
Please be aware that this information is subject to change. This was correct at the time of writing (25 th January 2022); we will update as and when we learn more.
Price increases
From the 1st of March, Microsoft are raising the pricing of six of their most popular products. This will affect you at different times, depending on if you are currently using these services or not.
This is Microsoft’s first price increase in over 5 years and, although not great timing, we believe that the increase in both product availability and service upgrades over this time warrant the change.
As mentioned, this is a change by Microsoft, and is out of our control. The main 6 products affected by the change, as well as the current estimated price increase, is below. We’ll be able to provide a more accurate update at the start of February:
- Microsoft 365 Business Basic – 20%
- Microsoft 365 Business Premium– 10%
- Office 365 E1 – 25%
- Office 365 E3 – 15%
- Office 365 E5 – 8.5%
- Microsoft 365 E3 – 12.5%
These changes will come into effect at different points, depending on your renewal date and licence type – please get in touch with your account manager if you’ve got any questions about how this will affect your business.
Changes to licencing
Microsoft also announced a change in how customers purchase and manage their licences through their Cloud Solution Provider (CSP) programme (the platform users buy their licences through).
On the 10 th of January 2022, Microsoft launched the New Commerce Experience (NCE). This change impacts the way you purchase Microsoft 365 licences, with Microsoft’s intention to reduce complexity and provide cost savings for long term commitments.
Monthly Option
You will be able to make changes to your licenses in a 72-hour window once per month. This option is the most flexible on the New Commerce Platform, but will come at a price premium if you do not wish to commit for a long term.
Seat additions can take place at any time, so you can add to your agreement like normal, however reductions can only happen in that 72-hour window monthly. Not all services are available on this model, so it’s worth checking with us before deciding on any agreement path.
Annual Option
You will be able to make changes to your licenses in a 72-hour window once a year. This option is less flexible than the above, but is not subject to the price premium and therefore is cheaper than its monthly counterpart. License additions are also the same as monthly. Payment for this option can either be on a monthly basis (with a year commitment) or upfront.
Multi-Year Option (launching mid 2022)
You will be able to make changes to your licenses in a 72-hour window at the end of your 36-month term. This option is the least flexible, but is not subject to the price premium and therefore is cheaper than the other two options. License additions are also the same as monthly. Payment for this option can either be on a monthly, annual or upfront basis.
What do you need to do?
We’ll be updating you as and when we get the information, but if you’ve got any questions or concerns, please don’t hesitate to get in touch. The most cost-effective way to renew your Microsoft licence is with an annual subscription. We’ll help to leverage discounts and get you the best deal we possibly can, and handle all of the admin to ensure that the transition to the NCE is as seamless as possible.
