Microsoft has announced major changes to their licensing models.

The entry level to Microsoft Enterprise Program will be increased from 500 to 2500 seats. Organisations under 2500 seats will have to purchase their licenses from a CSP (Cloud Services Partner).


In summary before the 1st of March all Microsoft customers will need to choose to move to either a monthly rolling contract or commit to a 12-month contract for Microsoft Office 365 subscriptions to avoid the upcoming 20% Microsoft price increases.

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What’s changing?


Option 1: Purchase your licenses on a 12-month agreement. Doing so will mean that you can no longer decrease your license count below what you’ve purchased during the 12-month agreement. However, you will be able to fix your current pricing costs for 12 months, allowing you to bypass the price increases that will be introduced on the 1st March 2022. Under a 12-month contract you can still pay for your licensing on a monthly basis

NB – if you choose Option 1 please be aware that you will not be able to move your current Microsoft licensing to a new IT support provider during the duration of the 12-month contract. Your current Microsoft Support Provider will need to confirm with you that you agree to the new 12-month contract and advise you of the contractual changes.


Option 2: Sign up for a new monthly rolling contract and retain the option of flex up or down licensing as you need to. Due to there being no commitment to a specific number of licenses, these flex licenses will cost around 20% more than the current rate.



New Cancellation Policy


With the launch of New Commerce Experience Microsoft will be enforcing a cancellation policy for annual term offers and will be introducing a new monthly term offer. The cancellation policy means that it will only be possible to cancel licensing you order through us within 24 hours of placing an order. In order to provide customers with the flexibility that they have enjoyed previously Microsoft are introducing a new monthly term offer, which will be priced at 20% more than making an annual commitment (annual term offer).



When will the changes take place?


Microsoft’s launches their new licensing model on the 10th January 2022. From March 2022 all new and renewing subscriptions will need to be purchased through the new licensing plan.

In addition to the NCE, Microsoft have announced a price rise from 1st March 2022 for Microsoft 365 Business Basic, Microsoft 365 Business Premium, Office 365 E1, E3 and E5, and Microsoft 365 E3.

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