Microsoft 365 is changing to a new licencing model, known as the “new commerce experience” (NCE). See how these changes will affect you.
A price increase will apply to all new Microsoft 365 Business Basic, Microsoft 365 Business Premium, Microsoft 365 E3, Office 365 E1, Office 365 E3 and Office 365 E5 licences from 1 March 2022) as well as existing licences as they come up for renewal after this date.
This is Microsoft’s first price rise in a decade and is a 10% increase for Business Premium licences and a 20% increase for Business Basic licences. The price of Microsoft 365 Business Standard licence remains unchanged at this time. Other licences will increase between 10-25%.
Microsoft is also making changes in terms of the “commitment” period of a licence, that is how long you commit to having the licence for. We are currently assessing how this impacts all of our clients, so we can ensure a smooth transition to the new licencing model.
All existing licence prices will remain unchanged until it becomes due for renewal. At the time of the renewal, two main subscription/payment terms will be available:
- Yearly: This is an annual commitment with an upfront payment for one year with additional licences prorated until the end of the annual subscription term.
- Monthly: This is a month-by-month commitment with licences paid for monthly and additional licences prorated until the end of the monthly subscription term. Licences on a monthly commitment will attract a surcharge of at least 20% compared to a yearly commitment, depending on the type of licence.
Regardless of the length of the commitment, there is no ability to cancel or downgrade a licence midway through its term, and no partial refunds will be provided. Downgrades will only be possible when licences are due for renewal, however upgrades can be performed at any time.
Microsoft 365 licences are due for renewal at differing stages throughout the year and we will contact individual clients to discuss the options closer to their renewal date. Our recommendation is to move to yearly contracts and upfront billing to ensure the best price.
We appreciate a price rise is never really welcomed, however this pricing increase affects all Microsoft 365 subscribers, not just CyberGuru clients, and will be the same rate if you purchase from Microsoft directly.
Furthermore, the Microsoft 365 suite has expanded significantly over the past decade with more new apps and features in the pipeline, so it still provides excellent bang for its buck.
If you have any questions or would like to know more about how you can take advantage of Microsoft 365 to its fullest, please contact us.