What is the impact on my business?
Customers of Microsoft services such as Microsoft 365, Windows 365, Power Platform, and Dynamics 365 could all face a 10-25% price increase. The Microsoft online services that are affected include but are not limited to:
Microsoft 365 Business Basics
Microsoft 365 Business Standard
Microsoft 365 Business Premium
Office 365 E1
Office 365 E3
Office 365 E5
Microsoft 365 E3
There will be three subscription types under Microsoft’s New Commerce Experience (NCE):
Similarly, to the current monthly subscription, you will be billed monthly and have the flexibility to increase the number of seats/licenses your business is using. However, you will no longer be able to decrease the number of seats your company is using. You will now have a 72-hour cancellation/adjustment period from the time of purchase, or this can be altered at the end of the monthly term.
The monthly subscription cost under the NCE will come at a premium of 10-25 per cent across all online service plans.
The 12-month subscription has similar elements as the monthly subscriptions; however, it has the benefits of being billed either monthly or annually and offering a price lock on all subscriptions, which provides the customer security against unplanned costs.
You will still have the option to increase the number of seats, however, you will no longer be able to decrease seat numbers once again.
Available late 2022.
This subscription type has all the benefits of the 12-month but for a more extended period. Customers will have the option to be billed monthly, annually, or upfront and will also benefit from price locking for the entire 36-month term.
When is the Microsoft New Commerce Experience coming into effect?
January 2022 – General availability of NCE subscriptions
March 1st, 2022 – Microsoft price increase comes into effect
March 10th, 2022 – NCE mandated
June 20th, 2022 - Customers can renew via the existing legacy route
How to avoid hefty price increases
If your business is not looking to scale back its head count by 25 per cent or more within the next 12 months, then it will be advisable to commit to a 12-month term before the change is affected. If you are a seasonal business or your headcount is likely to fluctuate, you may wish to consider a mix of month-by-month and annual contract contracts.