Office 365 and Microsoft 365 prices are increasing for the first time in 10 years, but for those customers who are willing to sign up to a 12-month contract now, you can retain your current pricing. These global changes coincide with a new commerce experience Microsoft are launching which will affect any business who currently purchases Microsoft Office 365 and Microsoft 365.
We have prepared some frequently asked questions, but if you have any further queries or concerns, please contact us for clarification.
When will the new prices go into effect?
1 March 2022
What are the price changes?
Unless you commit to an annual agreement before the 11th February, the following price increases will come into effect for those remaining on monthly agreement, in addition to a 20% surcharge for remaining on a monthly agreement:
– M365 Business Basic increasing by 20%
– M365 Business Premium increasing by 10%
– O365 E1 increasing by 25%
– O365 E3 increasing by 15%
– O365 E5 increasing by 9%
– M365 E3 increasing by 12%
So, for example, a M365 Business Basic Licence will increase by 20%, as above, plus an additional 20% surcharge for remaining on a monthly agreement. This equates to a total of a 48% increase if no action is taken.
The prices available are currently in dollars; we won’t know the pricing for the UK market until the beginning of February. The pricing level will be set in accordance with the Exchange rate between the Dollar and Pound at the time. We only know the approximate percentage uplift for the new prices:
What are the commitment changes?
Organisations will be able to choose between:
– Annual commitment paid annually
– Annual commitment paid monthly
– Monthly commitment on the new pricing schedule above, with an additional 20% surcharge.
Can I do anything before 1st March to lock in my current pricing?
Yes, you can. We are aiming to get everyone who wants to retain their current pricing on a 12-month contract by 11th February 2022. Your payment commitment options will be:
– Annual prepaid
– Monthly paid with an annual commitment
What happens if I do not want to tie into an annual commitment?
You can remain on a monthly contract with no annual commitment, however, the price increases detailed above will be applied from 1st March, plus an additional 20% surcharge.
Why have Microsoft made this decision?
With the unprecedented rise in remote and hybrid working over the past year and the expectation for these working arrangements to continue well into the future, the need for Microsoft’s flexible solutions to common workplace requirements is in high demand. These products and the new commerce experience have been developed to help facilitate the necessary changes to keep businesses running as smoothly as possible.
Will we be able to reduce the number of licenses we have?
The short answer is no.
You will be able to cancel each license outright at the end of the annual commitment (or at the end of the month term, if you have opted for monthly licensing). However, if you change your mind within 72 hours of purchasing a new license on an annual commitment you can remove it and reduce your tenant back down to your original quantity. After 72 hours those extra licenses are locked-in to your account until the end of your annual agreement. For example, if you were to buy 10 licences on an annual commitment, then after a month purchase a further 10 licenses, you will be able reduce your tenant back down to your original 10 licenses within 72 hours from purchase. After 72 hours, you will not be able to reduce the quantity of licenses to below 20 for the rest of the term.
We would strongly recommend raising a ticket with us to retract those extra licenses within 48 hours to ensure the cancellation occurs safely within the 72 hour window.
What if we want to downgrade our package?
If you purchase an E3 package, for example, you are locked-in to that package for the entire term of the agreement, whether that is a month or a year. This means every package must be planned properly taking into consideration the relevant apps required by each user. We can help you with that.
How will this work for multi-year agreements for clients who regularly need to make a lot of changes?
Microsoft recommends in this case to opt for a monthly commitment. While a rolling monthly commitment is more expensive, multi-year licenses will only work for customers who know their start point and are confident they will require the full quantity of licenses specified until the quoted commitment end date.
Can clients change partners mid-term?
No, you cannot change partners mid-term.
Can I upgrade a license during the annual term?
Yes you can, for certain licences, if you would like to upgrade call us for a chat and we will discuss the best option(s) for your business.
Can I still mix and match licences?
Yes. This hasn’t changed. You can still have some E3, some standard, some premium, some on a monthly agreement (with the associated price increase), and some on an annual agreement at today’s pricing – in short, whatever combination that works for you and your business. Again, we can help advise you what is right for your organisation.
How exactly will the pricing work?
Microsoft have said that any Office 365 order placed before March 2022 will be honoured at the current purchase price, and that figure will be fixed for a year. This means that we will be able to secure another 11 months at no increase across your range of products, providing that you sign up for an annual payment/monthly payment with annual commit plan before the middle of February.
If a person leaves a business, meaning an E3 is no longer required, is that classed as a downgrade?
If you buy 20 E3s, and then no longer need all of them, you will still be charged for them all. Whatever is in place after those first 72 hours from the point of order is what they will bill for the remainder of your annual (or monthly) term, going forward.
Will Exchange Online be affected?
Yes. Business Basic, Exchange Online and Exchange Kiosk licenses are affected, by commitment terms.
Will we be able to remain on the old service platform?
No. The old licensing system will be retired, and all customers will need to be put onto NCE (New Commerce Experience) term licenses.
Can I still pay monthly?
Yes, you can. The only thing changing is that the new commitment is either monthly at the increased rates detailed above, plus a 20% surcharge on all licences, or annually.
Can we change provider of licence at any point during the commit, or only at the anniversary?
You will only be able to change license providers on the anniversary of the tenant. By accepting our quote, you will have accepted the terms with Piran Technologies at the start of the new tenancy which will expire on the anniversary of its creation.
Is the only benefit in committing to the long-term plan the reduction in price?
Unfortunately, yes. This is the only benefit.
Will monthly still exist?
Yes, but in a different way than previously. Rather than being able to flex up one day and take down on another, now you will only be able to make changes once a month. You can still pay monthly for an annual commitment or pay monthly on a monthly commitment term (with a 20% surcharge per licence, on top of the individual product price increases above). You can cancel on a monthly commitment plan, but this will only be applicable on a monthly rolling contract. Basically, this means that rather than the old-style day rate where daily adjustments were possible from now on monthly commitments will entail the whole month from start to finish.
What is the monthly commitment?
Your commitment is a full thirty days from the day your licence was purchased.
If you have any other questions or concerns we encourage you to talk to us sooner rather than later by calling 01209 340120 or emailing firstname.lastname@example.org.