Microsoft Office 365 Price Changes
Microsoft is launching a new subscription plan called the New Commerce Experience (NCE). This new pricing is the latest model for Microsoft 365, Dynamics 365, Windows 365, and Power Platform subscriptions. It has been designed to reduce complexity in the billing process and provide cost savings for long-term subscriptions. Below we have listed the important dates to remember as well as a quick description of the program options.
Important Dates
MARCH 1, 2022: Price increase in March on 6 SKUs (listed Below)
MARCH 10, 2022: Any brand-new subscriptions will be through the new NCE program
JULY 1, 2022: Second NCE enforcement for existing subscriptions
Subscription and Price Changes
Annual subscriptions, cancellations, or seat reductions will only be allowed within 72 hours of placing any orders. Decreases or cancellations to the annual commitment are only allowed at the annual renewal date. All upgrades during the annual term will be allowed. All added licenses during the year will be co-termed to the date of the original commitment end date. Not all licenses will be available on a monthly term. (Annual commitments will not allow transfers between Microsoft and any Service Providers after March 1st.)
Price Increases
On March 1, 2022, Microsoft will update its pricing for the following commercial products:
Microsoft 365 Business Basic -$5 to $6 / mo.
Microsoft 365 Business Premium - $20 to $22 / mo.
Office 365 E1 - $8 to $10 / mo.
Office 365 E3 - $20 to $23 / mo.
Office 365 E5 - $35 to $38 / mo.
Microsoft 365 E3 - $32 to $36 / mo.
All increases will apply globally with local market adjustments for certain regions.
Benefits of NCE
Pricing will be based on an annual commitment (paid monthly) to receive long-term price protection
Lock in pricing further with multi-year terms for Dynamics 365 (and coming soon: Microsoft 365 and other offer types)
Next Steps
The Element team will be sending out more information in the coming weeks to assist with the transition. We highly recommend the annual commitment as this is the direction Microsoft is driving their business. Element is working to help educate ourselves and our clients on this new Microsoft program. Please watch for these updates soon.