Over the course of the next few months, Microsoft will be making changes to both its licensing model, as well as pricing changes. Due to this, we have little choice but to follow these changes ourselves, meaning there will be some important updates to our customer base. As we strive to keep our customers updated with the most important information, we feel now is the perfect time to break this down to you. We’ve split the below in to two sections (price increases and license changes).
From March 1st, Microsoft are raising the pricing of six of their most popular products in the market. This will affect you at different times, based on if you are currently utilizing these services or not. This is Microsoft’s first price increase in over 5 years. As stated above, this is a change by Microsoft, and therefore is something out of our control. The main 6 products affected by the change, as well as the current estimated price increase is below. Pricing in pound sterling will be made available at the start of February:
We will be contacting you in due course to inform you of when these price increase will affect you. If you’re already purchasing one of these products from us, then your pricing will stay the same until an anniversary date, which is based on when you first ordered the service. If you’re looking at purchasing one of the above products soon, please speak to our sales team / your account manager so we can work together to find the most suitable path for you.
Microsoft has recently announced a change in how customers purchase and manage their licences through their Cloud Solution Provider (CSP) Program, which is the platform you are currently buying your licenses through. On 10th January 2022, Microsoft launched their New Commerce Experience (NCE). This change will impact the way you purchase Microsoft 365 licences, with Microsoft’s intention to reduce complexity and provide cost savings for long term commitments, whilst introducing additional features over the course of the year.
Microsoft is offering a 5% discount for annual Microsoft 365 commitments. The annual discount will be available until the start of March 2022. Committing to your licences before the start of March 2022 will not only allow you to benefit from the discount, but also avoid the price increase for an extended period of time.
With the launch of NCE, Microsoft will be introducing additional ways of purchasing your Office 365 services (alongside that of monthly rolling). These options will be 12 month and 36-month commitments (36 month coming later in the year), allowing you to save on any future cost increase by committing to the coming years. With these changes, however, comes some differences on how you can change your licenses quantities, which is explained below:
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.
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 commit) 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 its monthly counterpart. License additions are also the same as monthly. Payment for this option can either be on a monthly, annually or upfront basis.
Please note it is not possible to switch down from one type of licence to another during the annual or multi-year options.
What do we advise next?
As always, we are here to support you with all Microsoft changes, and pride ourselves on the service we offer. We have been evaluating the best options for our customers since the New Commerce Experience launched and believe it’s in your best interests to look at moving to the NCE where available and leveraging the discounts when possible.