Microsoft has announced a change in how clients purchase and manage their licenses by launching New Commerce Experience (NCE). They also shared a price increase for six products that will take effect on March 1, 2022. According to the company, this is the “first substantive update” in prices since they launched Office 365 about a decade ago.
The NCE is intended to reduce complexity and provide cost savings for long term commitments. On the other hand, Microsoft unveiled the price raise for all countries, which will impact millions of businesses. That’s why is so important to understand not only the economic part of it, but the policies and types of subscriptions as well. That way some adjustments can be planned, and other charges avoided.
What’s Coming Up?
March 1, 2022: the 15% price increase across Microsoft 365 licenses come into place. From March all new and renewing subscriptions will be purchased through NCE.
July 1, 2022: the 20% price increase for Microsoft 365 MONTHLY term licenses only will take effect.
October 1, 2022: All customers will now have to purchase through NCE.
February 1, 2023: All remaining subscriptions on the previous experience must be moved to the NCE.
What About Prices?
Microsoft 365 provided the list of services with a price increase for USA but has not shared the new Canadian pricing yet.
- Microsoft 365 Business Basic
- Microsoft 365 Business Premium
- Office 365 E1
- Office 365 E3
- Office 365 E5
- Microsoft 365 E3
The charges will be applied “per user per month”, which will affect your bill depending upon your subscription plan. Keep in mind your business priorities and cycles before picking the right subscription, there are new rules for short- and long-term agreements.
What Are The Subscriptions and Policies Updates?
The new rules indicate that cancellations cannot be reversed after the adjustment window (72 hours), and that subscriptions will automatically be renewed at the end of the term. Paying attention to the date of your subscriptions will allow you to cancel it or remove licenses within that time frame.
For Month-To-Month subscription, payments will happen monthly, and flexibility is your major benefit. For 1-year deal, you must pay upfront, and your price will be locked in for those 12 months.
Customers will also be able to opt for multiple subscriptions, allowing the costs to be lower for permanent staff with a 1-year subscription, and having more flexibility to decrease seats for seasonal employees with a month-to-month license.
What Needs My Attention?
Everyone is reviewing their current licenses and deciding what is the best option for their business. Are you using everything you’re paying for? Should you get rid of that premium license that is not quite what you need? There are many ways to evaluate what you have signed for and how you can optimize it for your next bill. If you have questions about it and would like to review this with one of our experts, give us a call today.
