As of January 2022, Microsoft has introduced a New Commerce Experience (NCE) for its products licensed per user through its CSP (Cloud Solution Provider) program.
At the same time, a price increase for certain Microsoft 365 and Office 365 plans, announced half a year ago, is also expected from March 2022.
These two changes will have the following effects on existing and new customers.

1. Price increases for certain products

Microsoft will increase the price of certain Microsoft 365 and Office 365 products from 1 March 2022, the first substantive pricing update since the launch of Office 365 a decade ago. The updated pricing reflects the introduction of hundreds of features in recent years and the resulting significant increase in value.
Due to this, from 1 March 2022, new contracts and renewals of existing contracts must be planned with the increased prices set out below.*

*The prices published in the table reflect the information available on 3 February 2022. The prices in the table do not constitute a commercial offer. For a quote tailored to your business, please contact our expert using the form at the end of this blog post.

2. New agreement types will be available with various commitment periods and conditions

The length of the contractual commitment also affects the price of the purchased licenses.

Monthly commitment

This plan offers a level of flexibility similar to the current agreements, but the agreement term is 1 month, renewed monthly.

What are the benefits?

• The number of licenses may be increased at any time.
• The number of licenses may be freely reduced at the end of the month.
• The agreement may be terminated at the end of any month.

What should you consider?

• Flexibility at the cost of 20% higher license prices
• As the agreement renews monthly, the price may increase in any month.

Annual commitment

The term of the licensing agreement is one year.

What are the benefits?

• The same price is guaranteed for 1 year.
• The price increase is lower than with a monthly subscription; see the table above.
• The number of licenses may be increased at any time.
• Choose between a monthly and an annual billing cycle.

What should you consider?

• The number of licenses may not be reduced for one year.
• The agreement may not be terminated for one year.

Three-year commitment

The licensing agreement term is three years.

What are the benefits?

• The same price is guaranteed for 3 years.
• The rate of price increase is shown in the table above.
• The number of licenses may be increased at any time.
• Choose between a monthly, an annual and a three-year billing cycle.

What should you consider?

• The license count may not be reduced for three years.
• The agreement may not be terminated for three years.

Other important information

• The price increase and the shift to the New Commerce Experience will be due for all subscribers using the product affected at the latest when their existing agreement expires.
• A company or organization may enter into an agreement with various commitments, purchasing licenses with three-year, annual and monthly commitments at the same time.
• The flexible reduction in number of licenses is only possible with a monthly commitment, but you should consider that the license price increases the most in this scheme (by about 40%).
• Any agreement allows for a flexible increase in number of licenses.
• With a 1-year or 3-year commitment, the agreement may not be cancelled until the end of the agreement term, but in turn the price of the licenses ordered will not increase in the chosen 1-year or 3-year period.

Our experts are happy to help you understand the changes and determine the most suitable agreement option for you. Feel free to contact us using the form below.