Office 365 is changing: are you ready?
In August of 2021, Microsoft announced the New Commerce Experience and their first notable price increase in more than a decade.
The company is citing its extensive development of the platform, and associated applications, as the reason for the change – noting that customers now receive significantly more value from their subscriptions than they did 10 years ago.
For example, Microsoft has since added 24 apps to the Office suite (such as Teams, Power BI, Visio and OneDrive). They’ve also made more than 1400 new features available, and extended their use of advancing technology (including automation and AI) while taking huge steps to improve security.
Additionally, Microsoft will now include unlimited audio conferencing for Team meetings to support the remote work revolution we’ve seen in recent years.
What our clients need to know
A 15% price increase came into effect on March 1 for all licenses except Office 365 E5. We will make this new pricing available to all our existing clients, and new clients can request a copy.
Although the price hike is quite significant, the biggest change is actually the enforcement of annual agreements. Microsoft used to base monthly pricing on annual agreements but didn’t charge you more if you chose to pay monthly vs annually. Now, you’ll pay 20% more if you choose to have a month-by-month agreement versus an annual agreement.
It’s important to keep in mind that you cannot remove any licenses until your renewal period when you choose the annual agreement option. You can add new licenses at any time though.
While Microsoft originally offered a 72-hour grace period if you change your mind after signing an annual agreement, this has now changed to 7 days. This means you have 7 days to cancel an annual agreement once you sign, otherwise you will be locked in for the year and the total annual licence cost will be due.
Is your Microsoft subscription right for your business?
This pricing change reinforces how vital it is to ensure you are selecting the best Microsoft licence for your business and users.
If you’re concerned about over-spending on Microsoft licenses, or want to make sure you’re getting the most value out of your subscription, speak with an IT expert.
We are more than happy to evaluate your business needs against existing licenses, and determine whether or not you should consider a different licence type.
You can also engage us to manage the licence for you so you don’t have to worry about payments, upgrades, adding new users, and so on.