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Microsoft is an innovator not only in technology, but also in the many ways customers can buy its services. But as you may have heard, Microsoft has recently announced price changes and a New Commerce Experience for Microsoft Office 365 and other products. Here is what you need to know about these changes.
Since moving to the cloud, Microsoft’s Office 365 has grown in a decade to 300 million commercial seats. Microsoft has added 1,400 features and 24 applications to the suite including Teams, Visio, OneDrive, Yammer and Power Apps.
As usage continues to skyrocket and development continues, Microsoft is rolling out a new pricing model and New Commerce Experience. Microsoft has shared details with us as a partner, we want to give you as much information about these changes as we can so that you can make an informed decision.
PRICE INCREASES
Microsoft has announced a price increase for March of 2022. This means Elevity will introduce new contract options for our clients over the next few months. As Microsoft increases its pricing as of March 1, 2022, we will update our list 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)
- Microsoft 365 E3 (from $32 to $36)
THE NEW COMMERCE EXPERIENCE
Microsoft’s New Commerce Experience (NCE) was launched for Microsoft Azure in 2019 and is intended to simplify its licensing purchasing. The NCE expands to include Microsoft 365, Dynamics 365, Windows 365, and Power Platform in March of 2022. The NCE favors longer contractual terms, although month-to-month terms are still available. Microsoft will honor any rates and contract terms made before March 1, which is why we are encouraging our customers to choose the best plan for their needs soon.
As you know, Elevity provides a variety of managed services in addition to Microsoft 365. And as a Microsoft partner, we have access to advanced support levels, which we can access as a Microsoft Partner. On your own, an individual company does not have access to the same level of escalated support. Elevity’s Microsoft experts offer several options to choose your subscription model:
- Month to Month (includes an additional 20% price increase)
- 12 Month
- 36 Month
Enrolling before March 2022 offers the most flexibility and price protection. You can avoid the upcoming price increase and possibly other, future price increases. Customers that lock in the 12- or 36-month rate will not see their costs go up during that period. However, for customers that remain month to month, prices will go up an additional 20%.
Microsoft will honor any contract agreements made before then, even if you need to add licenses before the contract period is up. (You can add users, but not contract those licenses.)
NOTE: These changes do not yet affect non-profit or government customers but may be in the future.
Our primary recommendation is to determine your minimum service requirements, allowing for an upgrade in the next three years, but not committing to a service level above your expected needs.
LOCK IN YOUR RATES TODAY
Microsoft Office 365 empowers workers for a more flexible, hybrid world of work. We’re committed to building on the value we’ve delivered over the past decade to continuously provide innovation that helps our customers succeed and thrive today and well into the future.
We hope you value Elevity’s role as a strategic partner, offering elevated support and expert advice. Microsoft is asking partners like us to manage this roll out, which is why we have this blog post and webinar available. If you need help weighing your options complete this quick form.
