Microsoft 365 License Changes

New Commerce Experience. Changes to Microsoft seat-based licenses.

Feb 15, 2022

You might have seen some buzz in the news around the upcoming changes Microsoft are making to seat-based licenses and the “New Commerce Experience.” The changes kick in from 1 March 2022, so if you are using Microsoft 365, Windows 365, Dynamics 365, or Power Platform, you are going to be impacted.

So, what is changing?

The three biggest shifts you need to get your head around are:

  • Some month-to-month licensing will incur up to a 35% price rise across Microsoft 365 licenses from 1 March 2022
  • 12-month contracts (paid monthly or annually) will have a 15% price rise across all Microsoft 365 products when renewed from 1 March 2022 onwards
  • You will have 72 hours to make any changes to your user numbers after purchasing a license. Otherwise, you need to wait until the time of renewal to change license numbers. This means that if you lock in 10 users for 12 months, you can’t reduce below 10 users even if staff numbers reduce. You can increase your user numbers, but then you are committing to the increased number for the remainder of the contracted period.

New pricing from Microsoft (USD): On March 1, 2022, we will update our pricing for the following commercial products: Microsoft 365 Business Basic (from $5 to $6 per user), Microsoft 365 Business Premium (from $20 to $22), Office 365 E1 (from $8 to $10), Office 365 E3 (from $20 to $23), Office 365 E5 (from $35 to $38), and Microsoft 365 E3 (from $32 to $36). These increases will apply globally with local market adjustments for certain regions. There are no changes to pricing for education and consumer products at this time.

From July 2022, all existing subscriptions under previous Commerce Experience must be renewed under the NCE.

3 Different types of Subscriptions

  • 1 Month (Month to Month) – Billed monthly (agreement enforced for 1 month with Auto-renew each month)
  • 12 Month – Billed Monthly or Annually
  • 36 Month – same as 12 Month
  • 72- Hour grace period

https://www.microsoft.com/en-us/microsoft-365/blog/2021/08/19/new-pricing-for-microsoft-365/

You can reach out to us at sales@techprecision.com.au if you have any questions.

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