Microsoft 365 License Changes
You might not be aware, but Microsoft have announced the “New Commerce Experience” (NCE), which brings the introduction of a 1 and a 3 year term for Microsoft licensing – unfortunately this does mean that monthly subscriptions are changing. Like all things at the moment costs are increasing, therefore Office 365 monthly will be available, but this will come at a premium cost (roughly 20% more, though this is subject to change) and will impact all Microsoft subscription licenses.
You can read more about this announcement and how Microsoft are positioning it here August 2021 announcements under “New Commerce Experience for Microsoft 365, Dynamics 365, Power Platform, and Windows 365 seat-based for breadth motion”.
To add to the confusion, Microsoft are phasing in the new pricing and offering some incentives to commit to an annual license before the new pricing comes into full effect.
As of 31st March 2022 you will only have the option when setting up a new subscription or if you are renewing a monthly license to:
- Option 1 – Commit to a monthly term
- This offers the most flexibility out of the terms available with the ability to scale up and down or upgrade and downgrade licenses on a monthly basis. However, this does come at a premium and it is likely to see a 20% increase on current pricing
- Option 2 – Commit to a 1 year term
- Although this limits flexibility this does avoid any price rises on current prices or within the term
- Option 3 – Commit to a 3 year term
- As a result of this option not being available until March/April, limited information has been provided on it. We envisage a further commercial incentive to commit to the 3 year term but currently pricing is unknown
It is possible to “Mix & Match” the terms for a subscription. As an example, you can have 10 users that are a given throughout the year and put these on a 1 year committed term. You may hire additional employees throughout the year to help with busy periods and these can be ordered on a monthly committed term, allowing you to scale up and down depending on when they may be required – however, these will be at an approximately 20% price rise on those additional users that are on that monthly term.
With this Mix & Match options, EBS are proposing that you review your Office 365 users, remove any that are not required and identify a minimum requirement for each Office 365 plan. EBS can then quote for a 12 month commitment for the minimum requirement and provide a monthly price for the remaining.
Failure to review and commit to new licensing before the 31st March 2022 will result in all licenses moving to monthly pricing and incurring the increased charge.
For any questions please speak to your Account Manager.