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CMI Blog

Major commercial changes to Microsoft 365. What do they mean for you?

 

There are a couple of commercial changes coming to Microsoft 365 that you need to be aware of and prepare early for. If you’re a managed services client of CMI’s, then breathe a sigh of relief; we’ll take the strain and guide you through these changes over the coming months.

Firstly, Microsoft announced in August that they will be increasing the price of commercial plans which could be as high as 25% and will take effect from 1st March 2022. Jared Spataro, corporate vice president for Microsoft 365 justified the increase by saying “This updated pricing reflects the increased value we have delivered to our customers over the past 10 years."

To be fair to Microsoft there has been a huge amount of innovation in the Microsoft 365 product. Since launching four years ago, Microsoft has added 24 apps to the suite, including Microsoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer and Whiteboard. Further, the company has kicked off 1,400 new features. Clearly Microsoft Teams itself has helped many of us through the past 18 months and provided huge value to our businesses.

The full Microsoft announcement can be read here: New Pricing for Microsoft 365

The dollar amounts range from $1 to $4 per user per month, or $12 to $48 per user per year, with the percentage increases running from a low of 9% to a high of 25%. The GBP equivalent will be available shortly.

 

  • Microsoft 365 Business Basic, up $1 to $6 per month, per user.
  • Microsoft 365 Business Premium, up $2 to $22 per month, per user.
  • Office 365 E1, up $2 to $10 per month, per user.
  • Office 365 E3, up $3 to $23 per month, per user.
  • Office 365 E5, up $3 to $38 per month, per user.
  • Microsoft 365 E3, up $4 to $36 per month, per user.

 

Secondly, Microsoft announced their New Commerce Experience (NCE) will be extended to seat-based offerings such as Microsoft 365, Dynamics 365, and the Power Platform. NCE was announced back in 2019 with Azure and is intended to provide a “consistent, simplified, and flexible purchase experience for customers and partners”. Unfortunately, its not quite that simple, but we’re here to help!

Microsoft 365

The Microsoft partner reaction has been very mixed, and indeed the timescales continue to shift, and the finer details are still being worked through. NCE for seat-based pricing is available as of October 2021 for new Microsoft 365 customers. For many existing customers, it will be better to wait until 2022 to migrate usage into NCE, but to do so before June 2022 when the introductory promotions expire.

The most significant changes between the ‘legacy’ and NCE include:

 

  • Rolling monthly commitment remains for customers needing term and seat-count flexibility, with a price premium.
  • NCE provides a new multi-year commitment with competitive pricing relative to monthly.
  • NCE will provide some additional features including communication credits
  • Changes to cancellation options mean a 72 hour window is being introduced to make changes to your subscription.

If you need help understanding Microsoft NCE and what it means for your business, we can help.

 

Get in Touch

 

Topics: microsoft

Graham Stead

Written by Graham Stead

Graham joined CMI following the acquisition of his previous business in 2016, having successfully run that for business for 20 years. Graham's absolute focus is on making sure that we consistently hold our clients central to everything that we do, and is often heard repeating our mantra "we exist to make a significant positive impact on our clients business". Graham and his team work closely with our clients to educate, inform, and ultimately to provide technology that delivers that positive impact. Outside of the office, he is a huge supporter of Bone Cancer Research Trust and has raised over £130,000 for them in recent years.

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