Microsoft: A Time for Change

Our marketing lead, Tania Skinner, looks at the licensing and pricing changes that are afoot at Microsoft; following an announcement all the way back in August 2019.

Published on 20th October 2021

A fair number of changes have been announced by Microsoft in the past two years including licensing model changes but more interestingly a new pricing structure; taking effect in March 2022, was announced in August 2019.

Firstly, let’s take a look at what the changes are. According to Microsoft:

“The pricing changes we are announcing today* will go into effect in six months. On March 1, 2022, we will update our list pricing for the following commercial products: Microsoft 365 Business Basic (from $5 to $6 per user), Microsoft 365 Business Premium (from $20 to $22), Office 365 E1 (from $8 to $10), Office 365 E3 (from $20 to $23), Office 365 E5 (from $35 to $38), and Microsoft 365 E3 (from $32 to $36). These increases will apply globally with local market adjustments for certain regions. There are no changes to pricing for education and consumer products at this time.”

This price change coupled with the cessation of the Open License Program in January 2022 could certainly disrupt software budgets in 2022 but more importantly the implementation and use of software across your estate. So how do the Open License changes affect you? Well, instead of purchasing licenses through your usual procurement method you will now have to purchase via another software agreement, like a CSP (Cloud Solution Provider) or an Open Value offering, from December 31st 2021.  

Microsoft have been encouraging migration to CSP agreements for a while now and the flexibility and affordability offered is attractive. Of course, there are pros and cons associated to every option, especially in light of the rumours surrounding upcoming changes to the CSP model.

So, understanding the future software needs of your business as well as your current position is key to making the right purchasing decision. If you would like help in identifying what model is the best fit for your business as well as ensuring that your software decisions are future proof, why not speak with us today. After all, now is a good time to review your estate and plan ahead for the impact these changes may have.

Original Announcement:

https://www.microsoft.com/en-us/microsoft-365/blog/2021/08/19/new-pricing-for-microsoft-365/

Written by:

Tania Skinner

Business Development Manager

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