Microsoft Office 365 Pricing Increase- What does it mean for you?

By February 24, 2022 April 1st, 2022 News
Man on computer with Windows 365

Photo by Windows on Unsplash

Microsoft introduced the NCE (New Commerce Experience) subscription model for its CSP (Cloud Solution Providers) in January of this year. This is Microsoft’s new way to purchase 365 User Licenses and provides re-sellers the ability to simplify and manage subscriptions.

The increase will go into effect on March 1st, 2022. What does this mean for you as a consumer? Here are the biggest take-aways for you and your business:

  • Term Options: Annual subscriptions can be paid on a monthly or annually basis; monthly term subscriptions will be priced 20% higher than the annual term subscription.
  • Cancellation Policy: An NCE subscription can only be cancelled during the first 72 hours of the subscription term (including day of purchase), cancellations after that will be charged until renewal date.
  • Upgrades/Downgrades: Subscriptions can be upgraded mid-term, but downgrades can only be done during the first 72 hours or end of term.

You might be asking yourself if there is anything you can do to avoid this pricing increase, but the only way to avoid it is to lock your business in to a multi-year commitment before the March deadline.  Here’s a look at the monthly per user fees customers will be paying for Microsoft 365 services come March 1st , 2022:

  • Microsoft 365 Business Basic: $6; up from $5
  • Microsoft 365 Business Premium: $22; up from $20
  • Office 365 E1: $10; up from $8
  • Office 365 E3: $23; up from $20
  • Office 365 E5: $38; up from $35
  • Microsoft 365 E3: $36; up from $32

So, what should you do now? We recommend that if you haven’t already, you should contact your IT partner so that they can help you transition to NCE, lock in your lowest rates and can assist you in making sure your business has the correct number of licenses prior to the March 1st deadline.