Microsoft recently announced a price increase for its most popular Microsoft 365 solutions. Microsoft launched the New Commerce Experience (NCE) for all so-called user-based subscriptions (‘seats’), including Microsoft 365, Dynamics 365 and Power Platform.
We at Analyst ICT keep a close eye on Microsoft developments for you. For this reason, we have looked ahead to the possibilities you have to renew your Microsoft licenses in the right way at the most favorable options. Below you will find more information and our advice.
What will change?
Two important changes are coming:
- A significant price change effective March 1, 2022
- After March 1, there will only be the possibility of licensing/contracting within the NCE model ( New Customer Experience ).
- A price change effective March 1, 2022
The price increase means that subscription fees for said solutions could be significantly more expensive for you starting next March 1. If you act quickly, we can help minimize your licensing costs. - After March 1, only the ability to enter into licenses/contracts within the NCE model
Within the NCE model, Microsoft primarily offers annual contracts for Microsoft 365 licenses. However, it is still possible to opt for monthly billing. The big difference is that within the annual contract the number of licenses cannot be adjusted downwards. Upward adjustments are possible within the annual contract.
Monthly flexible licenses are still possible within the new NCE model, however, these will experience a huge price increase. For Dynamics 365, a three-year subscription and a new monthly subscription will apply.
More information is available on Microsoft's Web site: more information
The best choices for your organization
In many cases, it is advisable for your organization to by March 1, 2022 fix your Microsoft 365 licenses based on the new NCE model. This will allow you to avoid the first price increase (effective March 1, 2022). Also, depending on your current Microsoft 365 licenses, this may provide a commercial advantage.
If you decide not to take action, your current subscriptions will continue for the duration of your current contract, without acute price implications. At the end of your current contract, all current conditions will immediately expire and you will have to use the new pricing and any commercial advantages (as mentioned) will also expire. Therefore, it may be advisable to start adjusting your contract now.
So what is the right choice for you? That depends on the specific situation, wishes and future plans of your organization. Consider also fluctuations in your employee base (growth, shrinkage, acquisitions, etc.) in the short and longer term.
We will be happy to advise you on the choice that is most appropriate for your organization. Given the importance and deadlines mentioned, please contact us as soon as possible for tailored advice. We will do our utmost to provide our clients with appropriate advice before March 1.
