CSP updates coming in 2022
Microsoft have announced a new licensing and billing process launching in 2022 which will allow you to fix licence costs and help mitigate against inflation and other potential price increases.
Part of this announcement is a license price increase which has been announced from June in 2022.
Microsoft haven’t released full details of all the changes yet, but we’ll be be running a webinar and Q&A session to let you know about all the new changes, and answer you questions in the new year when we know the specifics.
You can register your interest for the webinar below, and we’ll be in touch when know more and have confirmed dates.
REGISTER FOR THE WEBINAR
New Commerce Experience
High Level Changes
Microsoft have announced a significant update to their billing platform which brings major changes to the way that licences are transacted. Microsoft have branded these updates and improvements to the licence provisioning and billing process as the New Commerce Experience (NCE).
From January 2022 all new customers will be on NCE, with existing customers being given the choice to manage their transfer up until June 2022. Past this point any renewals will have to be done on the NCE.
All license prices are due to increase in June 2022, but if you commit to a 12 or 36 month term before then, you can lock-in your current license prices.
ROLLING MONTHLY LICENSING
• Microsoft will still offer rolling monthly licensing, but this will be subject to a 20% surcharge on top of the license price increase.
• Much like the current model, licences can be purchased with full flexibility on numbers month to month.
• This flexibility comes at a premium. Prices are locked in only for that month and may fluctuate month to month based on the USD exchange rate.
• Cancelation within 72 hours or will be pro-rated. After 72 hours, the full month will be billed. (This is the end of pay per day.)
• Increases allowed at any point and become co-terminus, however downgrades will invoke the full month bill as above.
12 Month & 36 Month Commitments
• 12-month commitment expected to be at current prices with prices locked-in for the term of commitment.
• 3-year terms are expected to have additional discounts, with prices locked-in for the 36-month term.
• Flexibility to increase numbers above initial commitment will maintain current prices. But no reduction of numbers will be allowed below the minimum/initial commitment.
• Option to pay Monthly or Annually.
• Cancellation after 72 hours will be billed for
Price Increases From June 2022
The O365 and M365 licences still represent great value and MS continually add new features and services as part of the licence cost.
We’ll be in touch to share the exact pricing changes once we have final confirmation from Microsoft, and we’ll continue to have strategic conversations with you to ensure you’re getting the most value from your licence.
Currently we are aware that the below licences will change, and we’re being advised to expect a 20%
|LICENSE TYPE||CURRENT PRICE||NEW PRICE|
|M365 Business Basic||£3.80||£4.56|
|M365 Business Premium||£15.10||£18.12|
|Office 365 E1||£6.00||£7.20|
|Office 365 E3||£17.60||£21.12|
|Office 365 E5||£48.10||£57.72|
|Microsoft 365 E3||£28.10||£33.72|