You are affected by Microsoft’s changes to their licensing & pricing READ ON!
Price Rise Notification
We are writing to you because for the first time in 5-years, Microsoft are increasing their prices for licences billed monthly. They are also changing their licensing terms globally. You are going to be affected.
This change has been coming for a little while and until now we have not had enough information to provide any clarity. The purpose of this mail is to highlight the key changes and reassure you that your account manager will be in touch to explain them and explore what can be done to mitigate them.
From March 1st 2022 Microsoft are increasing the prices for some of their most popular licences from 10-25% depending on the licence. For more information on which licences are affected please have a look at this Microsoft blog post: New pricing for Microsoft 365 – Microsoft 365 Blog
Currently we bill your licences monthly on a consumption basis. Microsoft are withdrawing this ‘daily consumption’ option. Rewards, in the form of discounts, will now be available for clients that commit to an annual, or multi-year licence.
The options from March 1st are:
1. Monthly Licence
Continue on a monthly plan at the new licence price. The major changes are:
- These licences will have a minimum 20% price increase over what you currently pay.
- There are restrictions on when you can reduce your license numbers or downgrade them. This will be limited to a 72 hour window once a month on the licence anniversary date. You may still add new, or upgrade licences at any time.
- There is no 12-month price protection, so licence charges could change at any time.
2. Annual Licence
Microsoft are rewarding users that commit to annual or multi-year licences with a discount. Currently, there is a 12-month licence discount available. They have said that a 36-month discount will be available later this year.
If you were to commit to a 12-month contract now before March 1st you will avoid the price rise for an extended period of time and benefit from an additional 5% discount.
- This will be at the same equivalent price as your current licences and may well be cheaper with the 5% discount
- The price for your licences is protected throughout your commitment term. Any price changes would come into effect when you renew at the end of your term.
- You will only be able to reduce your license numbers or downgrade them in a 72 hour window once a year.
- You may still add new, or upgrade licences at any time.
- You will be legally liable to pay for the full term of the licence. Licences can be paid upfront or on a monthly basis
We will contact you to discuss these changes and how you would like to proceed. If you have any immediate concerns or requirements, please do call your account manager now.
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