Have you heard? Microsoft are increasing their subscription prices for MS365 on 1st March 2022 – the biggest price rise in over a decade. This means that some subscriptions will increase by approximately 20%.

But it’s not simply a price rise. Read on…

Starting January 2022, Microsoft have been offering a new range of Microsoft 365, Dynamics 365, Power Platform and Windows 365 subscriptions types. These are replacing the current Cloud Solution Provider (CSP) subscriptions you are used to. The reason behind this is Microsoft want to offer more options for tailoring your purchases to meet your business needs.

The new Microsoft 365 pricing explained

What will this mean for your business?

Put simply, you will have to decide if you want to stay on the monthly rolling contract or commit to a 12-month annual contract by 1st March 2022. Once you have decided the best option for your business, which your trusted IT provider can assist you with, you will need to sign up to the new Microsoft terms and conditions of use.

The good news is that if you opt for an annual contract before March you can lock in your current price for the next 12 months. If you do not want to commit to the 12-month contract, then from 1st March 2022 your subscription price will increase. By February 2023, all remaining subscriptions on the previous experience (CSP) must be moved to the New Commerce Experience (NCE) because they cannot be renewed on the previous CSP experience.

When opting for the annual commitment there are some things to be aware of. Firstly, during the contract you will be able to increase the number of subscriptions, for example when a new employee starts, but you cannot decrease them. Secondly, you will not be able to move your licencing subscription to another IT support company during the contract.

1-month subscription12-month subscription
Billing TermsMonthlyMonthly, Upfront
Pricing+20% price premiumSame as current CSP pricing
CommitmentFlexibleFirm
CancellationCancellation after 72 hours will be billed for the full monthCancellation after 72 hours will be billed for the full 12-month term
Price Lock1 month1 year
Mid-term upgradesAllowedAllowed
Mid-term DowngradesAllowedNot Allowed

Later in March 2022 (date yet to be advised), Microsoft will make a 36-month commitment option available.

Your questions answered

  1. What is the New Commerce Experience?

    Microsoft is expanding their New Commerce Experience to simplify and streamline how they supply subscriptions and to offer more options for tailoring these purchases to your business. Simply put, it’s the present and future of how Microsoft sells cloud products and services to customers. For example, if you have an Azure plan subscription through the Cloud Solution Provider (CSP) program, your subscriptions are already on the new commerce platform. Microsoft are adding to the new commerce cloud product portfolio the license subscriptions such as Microsoft 365, Dynamics 365, Power Platform, and Windows 365.

  2. Why should I agree to move to the New Commerce Experience?

    This will soon be the platform on which all Microsoft’s products and services will be provisioned. During the coming months your IT partner will be moving your existing subscriptions to the new commerce experience before Microsoft withdraw the current subscription process.

  3. Is it possible to mix monthly and annual term licenses?

    Yes. You can have a mix of both monthly and annual, with the monthly allowing the flexibility to increase and decrease licenses. With the annual plan you can increase but cannot decrease mid-term.

  4. What if I want to cancel my subscription mid-term?

    Microsoft’s new terms will now offer a 72 hour cancellation window from the day subscriptions are ordered. On a monthly plan cancellation can be made at the end of any months term. Customers who choose the annual term who cancel during the contract will be liable for any remaining subscription charges up to the end of their contract.

Contact us today to learn more about the New Commerce Experience and which option is best for you and your business. Act before end of February 2022 and lock in your price freeze!

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