Microsoft has announced that it will be increasing its prices for Microsoft 365, Dynamics 365 and Power Platform SKUs from 1st of March 2022, as well as introducing a New Commerce Experience (NCE).
The changes to the commercial pricing for Microsoft 365, which are the first substantive pricing updates since Office 365 launched a decade ago, reflect the shift towards hybrid working and support the advances in Office 365 and Microsoft 365.
The New Commerce Experience, the NCE ‘Per Seat’ model, is a licensing model which is based on the number of ‘seats’/people who use the software. The aim of this approach is to reduce licensing complexity and provide flexibility for future growth. NCE per Seat will be available for Microsoft 365, Dynamics 365, and Power Platform SKUs with terms of 1 month, 1 year or 3 years.
1 month subscription
- Benefits – Useful for seasonal businesses or those with uncertain workforce patterns, the 1-month commitment offers flexibility.
- Term – One full month with no pro-rata refunds.
- Price – 20% higher than the 12 month subscription.
- Seat changes – Seats can be increased at any time. You cannot decrease the number of licenses/reduce your seat count during the subscription term.
12 month subscription
- Benefits – The 12-month term commitment allows you to secure a fixed cost for one year.
- Term – Twelve months with no pro-rata refunds.
- Price – In line with current pricing.
- Seat changes – Seats can be increased at any time. You cannot decrease the number of licenses/reduce your seat count during the subscription term.
36 month subscription
- Benefits – The 36-month term commitment allows you to secure a fixed cost for three years.
- Term – Thirty-six months with no pro-rata refunds.
- Price – In line with current pricing.
- Seat changes – Seats can be increased at any time. You cannot decrease the number of licenses/reduce your seat count during the subscription term.
Please note, Microsoft will not provide pro-rata refunds for the early termination of any subscription in NCE Per Seat outside of an initial 72-hour cancellation window.
What does this mean for you?
If you are a Microsoft 365 customer of Bowe Digital, a member of our team will be in touch with you to discuss the changes in more detail. In the meantime, if you have any concerns or questions about the changes, please contact us.