Microsoft has announced new global price increases going into effect March 1, 2022. It’s the first pricing increase for Office365 in a decade and they’ve added substantial capabilities over the years.
VCS wants to review with you to minimize the financial impact and outlined changes coming to the Microsoft business model called NCE or New Commerce Experience. Our team has spent a considerable amount of time reviewing the changes and have laid out some examples of pricing changes below.
Examples of how Microsoft 365 Subscriptions prices could change on March 1st, 2022
- Office 365 E1 from $8 to $10
- Office 365 E3 from $20 to $23
- Microsoft 365 Business Basic from $5 to $6
- Microsoft 365 Premium from $20 to $22
- Microsoft 365 E3 from $32 to $36
Audio conferencing – Unlimited dial-in will be added to the following as part of the cost.
- Microsoft 365 E3 Office 365 E1/E3
- Microsoft 365 F1/F3: Office 365 F3
- Microsoft 365 Business Basic, Business Standard, Business Premium
Your Microsoft 365 Subscriptions Subscription Options
- Monthly Subscription
- Can decrease quantities on a monthly basis
- Additional 20% premium for monthly subscriptions
- For example: Office365 E3 increased from $20 to $23 + 20% ($27.60 monthly)
- 12 Month Subscription, fixed pricing
- Client must agree to an annual contract from Microsoft
- Can only decrease quantities at annual renewal time
- Annual or monthly payment options
- Example: Office365 E3 increased from $20 to $23
- 36 Month Subscription, fixed pricing – not recommended by KME
- Client must agree to a 3-year contract from Microsoft
- Can only decrease quantities at annual renewal time
- Upfront, annual, or monthly payment options
- Example: Office365 E3 increased from $20 to $23
What does the future look like?
Currently we don’t have all of the answers, this news was just released to us last week and we have spent as much time possible to understand the new model and how it affects our clients. As always things are contstanly changing, we don’t expect this policy to stay the same forever. As soon as we have more updates about the changes being made, we will release more information.
If you have any further questions please reach out to our team for assistance, by calling our office at (248)-349-6115.
