Microsoft 365 has recently announced their New Commerce Experience (NCE), including price increases and new licensing models, which is taking effect from 1st July 2022. This news may lead to slight confusion or concern, if so carry on reading this blog to find out everything you need to know about the new experience.
Microsoft 365 has always been kept up-to-date with the latest technology and is always adapting its offering to meet the evolving needs of businesses. This has resulted in Microsoft making big changes to their licenses and contracts which will affect those businesses using various Microsoft products.
How will the current Microsoft 365 products be affected?
As a Microsoft Silver Partner, we’re in contact with a colleague at Microsoft to stay completely up-to-date with any further changes or alterations that Microsoft make to their price increase.
Here are the changes summed up:
- There will be price increases for certain Microsoft products, such as some Office 365 and Microsoft 365 options. It is important to note that these price increases are separate from the New Commerce Experience announcement.
- There will also be a new licensing model called New Commerce Experience (NCE), affecting Office 365, Microsoft 365, Dynamics 365, Windows 365 and Power Platform subscriptions. You will be able to purchase licences monthly or under a committed, fixed-term agreement paid for upfront, annually, or monthly.
Which Microsoft 365 products come under the price increase?
Alongside the New Commerce Experience announcement, Microsoft announced their price increase of around 20% for all commercial products which is effective 1st July 2022.
Below is an example of Microsoft’s updated pricing list for their most common products, however this list does NOT include all products to which you may subscribe, all products are subject to the 20% price increase:
Example price increases for monthly commitment
Microsoft 365 Business Basic: £5.40 (from £4.50)
Microsoft 365 Business Standard: £11.28 (from £9.40)
Microsoft 365 Business Premium: £19.92 (from £16.60)
These increases will apply globally with local market adjustments for certain regions. There are no changes to pricing for charities, education and Government products at this time.
Can I avoid Microsoft’s price increase?
To avoid this price increase, Microsoft are offering customers the chance to move to a monthly billing with annual commitment term for all packages.
Though it avoids the 20% price increase, the new annual commitment option fixes your quantity of licences for the year too, meaning you’re only able to increase the number of licenses – decreasing the number of licenses during your contracted term is not permitted. In addition, any new annual term licenses bought at a later date will start a new 12-month agreement.
What happens next?
If you are happy to stay with your monthly commitment plan, with the flexibility to increase and decrease the number of licenses at any point, then no action is required and your new pricing will come into effect from the 1st July 2022.
If you would prefer to stay with your existing pricing and move to the annual commitment license agreement, contact your IT Provider before the 1st June 2022 to discuss the available options.
Want to find out more about Microsoft’s New Commerce Experience?
We understand that this news could have a negative impact on your company’s budget, however, if you have any queries, then please contact us by using the contact details below! Alternatively, you can find all information needed on Microsoft’s New Commerce Experience blog post.