Microsoft Price Increase and Change in License Terms: What you need to know

Microsoft has recently announced their first price rise in over a decade. This increase in price is to reflect the value that Microsoft has added to the product ecosystem in the past 10 years. Some of the ways that Microsoft has improved the Microsoft 365 suite includes the introduction of Enterprise Mobility and Security (EMS), which keeps your business safe from cyberattacks, and Microsoft Teams, the number one business communication and collaboration solution. Alongside the price rise, there are also changes to Microsoft license terms, which will affect all businesses.

To ensure that our customers are well informed, we have compiled some information about the changes, and answers to frequently asked questions.

Changes to License Terms

Microsoft has introduced monthly subscriptions to run alongside the existing annual subscriptions.

With these new monthly subscriptions, businesses can pay for Microsoft 365 services on a monthly basis. The monthly subscription comes with an additional price increase of 20% across all plans. This option is perfect for businesses with fluctuating staff numbers, or those that require flexibility.

The 12 month subscription provides the opportunity for businesses will be able to pay for Microsoft 365 services up front, annually. With this option, the price is locked in for the 12 months. During this time, businesses are only able to increase the number of licenses, not decrease. This option is ideal for businesses that have a consistent number of employees in a 12 month period.

Customers can also have a mixture of monthly and annual subscriptions, so full-time employees can go on a 12 month subscription, whereas seasonal workers can have a monthly subscription.

Which products are being affected by the price rise?

The price rise affects the following licenses: Microsoft 365 Business Basic, Microsoft 365 Business Premium, Microsoft 365 E3. Office 365 E1, Office 365 E3 and Office 365 E5.

Additionally, any monthly subscriptions will also increase by 20%.

When does the price rise come into effect?

The price rise on the licenses mentioned above will come into effect on the 1st of March, 2022.

How much will the price increase?

Depending on which licenses your business currently has, will dictate how much the price will increase. If you would like to discuss this and review your currently licenses, contact us today.

Can I avoid the price rise?

If your business has a consistent number of employees over a 12 month period, we can help you delay the price rise for a year by moving you to a 12 month subscription, paid upfront before March 1st.

What Next?

If you would like to discuss how much your Microsoft license spend will increase with these changes, or if you would like to review what licenses you are currently using, contact us today and we will be happy to help.