Microsoft 365 New Commerce Experince & Price Rises
Microsoft have recently announced a price rise on six of the most popular Microsoft 365 products, along with changes in the way business purchase their Microsoft licensing.
Since the announcement we’ve been working out the best way we can communicate the changes Microsoft are making and how we can help customers beat this price rise and keep costs as low as possible for their Microsoft 365 services.
Why the short notice?
Despite announcing some of the price changes in US Dollars several months ago, Microsoft have only confirmed the price changes in Great British Pounds today, the 2nd of February 2022, leaving us with very little time to communicate these changes to customers.
What’s changing?
The price rise means that any customers with subscriptions for the impacted solutions which renew on and after the 1st of March 2022, will move on to the higher prices at that point (this includes all monthly services).
Along with price rises, Microsoft are also introducing the following changes to how they sell Microsoft 365 products. Below, you will find a list of the changes Microsoft are implementing.
- 20% price increase for M365 Business Basic
- 10% price increase for M365 Business Premium
- A yet to be confirmed price increase for M365 Business Standard, M365 Apps for Business, Exchange Online Plan 1, and Exchange Online Plan 2
- Month-to-Month subscriptions will now carry a 20% premium over their annual counterparts in addition to the price rises
- You’ll no longer be able to downgrade the type or number of licenses during your contract (including if staff leave)
- All subscriptions will be auto renewed for their full contract period at the end of the contract unless cancelled
- Cancellations only available within the first 72 hours of terms with prorated billing/refund for the time used.
- Month-to-Month subscriptions will not be protected from price increases
Licensing Options
As part of the price rises, Microsoft has also announced there will be changes in the way businesses purchase licences for Microsoft 365 services.
itcent.re will continue to work with existing and new customers to ensure you receive the best value from Microsoft 365 services and have a balance of subscriptions that meet the needs of your business.
| Month-to-Month | Annual | Multi Year | Hybrid |
Term Length | 1 full month | 12 months | 36 months | A hybrid of monthly term and annual term subscriptions
1+2+3
Allowing for greater flexibility due to fluctuating workforce numbers |
Payment Frequency | Monthly | Monthly/annually | Monthly/Annually | |
Price Lock guarantee | 1 month | 12 months | 36 Months | |
Option to add users | Daily | Daily | Daily | |
Option to remove users | Monthly | Annually | End of term |
Cancellation available within first 72 hours of term with pro-rated billing/refund
What does this mean for your business?
If you take no action, your licencing will increase at renewal, from March 2022.
However, we’re offering our customers the ability to renew those subscriptions early before the end of February 2022 to maintain the existing prices up to February 2023.
What happens next?
We will be contacting each customer individually with a breakdown of your existing licensing and recommendations for beating these price rises. We’re time limited on implementing the changes, we’ll need to work quickly together to have them implemented to ensure that you avoid the price increases for as long as possible and maintain the best value from your subscription
Your service will not be interrupted during this transition as it’s purely an administrative change.
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