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Changes from Microsoft - M365 and Office 365

Microsoft has announced that on 1st March 2022 there will be significant changes to how you consume and pay for Microsoft products, M365 and Office 365. There will be a price increase for six of the core Office 365 and M365 Plans.

  • Microsoft 365 Business Basic

  • Microsoft 365 Business Premium

  • Office 365 E1

  • Office 365 E3

  • Office 365 E5 (up

  • Microsoft 365 E3

If you pay for your licensing on annual prepay – then the price increases won’t come into effect until your annual term renews (on or after the 1st March). If you are on an annual/ monthly plan i.e. you have committed to year but pay monthly, then your increase will come into effect when your subscription renews (you can find the date in the licensing section of the admin centre).

New Commerce Experience - NCE

NCE impacts on all cloud products -O365, M365, D365 and Power Platform – and changes for these products will take place on 30th June 2022.

Although you can continue to pay month-by-month, this will incur a 20% increase (on top of the price increase for the six afore mentioned products)

If, however you commit to an annual or multiyear agreement (available on certain products) you are not subject to the 20% increase and you can pay upfront or pay monthly. There are restrictions to be aware of.

  • Your partner for the subscription, whether Microsoft Direct or a CSP provider cannot be changed during the term of the commitment.

  • You are price-locked for the products provisioned during the term of the commitment.

  • You can increase license counts at any time, but you cannot reduce license counts until the committed term is up for renewal.

  • You can upgrade products in the committed plan at any time.

  • If you commit to NCE after June 30th, 2022, you are also subject to the price increase for the six O365 and M365 plans detailed above.

Enterprise Agreements

Enterprise agreement (for clients 2,400 seats or fewer) will be price levelled to match the upcoming New Commerce Experience (NCE) changes. These changes will take effect on June 30th, 2022.

We apprecitate that these changes can be complex and confusing so please contact Richard Twigger for more information and to discuss the best plan for your business moving forward.


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