Microsoft 365 Price Increase

Recently, Microsoft announced the first substantial price increase to its licencing programs for over a decade. From the 1st March 2022, Microsoft will be incorporating a price increase between 8.5% and 20% across all licencing programs. The following licenses will be affected:

  • Microsoft 365 Business Basic
  • Microsoft 365 Business Premium
  • Office 365 E1
  • Office 365 E3
  • Office 365 E5
  • Microsoft 365 E3

*The planned increase does not affect Education and Not-for-profit based licensing

New Commerce Experience (NCE)

Alongside the price increase, Microsoft have also announced the launch of the New Commerce Experience (NCE) for all Microsoft Cloud subscriptions from the 1st January 2022.  Customers will be able to commit annually to their existing licences and price fix them for a 12 month period.  Alternatively, customers can commit on a month-by-month basis but this will result in an additional 20% premium on top of the price increase.  For example, the Microsoft 365 Business Basic license on a monthly commit basis will see a 40% increase from the 1st March 2022.  A blended monthly and annual approach will also be available.

These announcements will understandably cause some concern to customers, however our experienced Microsoft specialists are on hand to help you understand what this means for your existing subscriptions and what options are available to help mitigate the cost increases that will undoubtedly affect your IT budget.

If you would like any further advice on what these changes might mean for your business or would like to hear more on what we can do to help, please do not hesitate to reach out on Servicedesk@wooditc.co.uk where a member of our team can assist you.

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