25/02/2022

Microsoft 365 price increase & the new commerce experience (NCE)

Microsoft have recently announced the first substantial price increase to some of its 365 licensing programs in over five years.

New pricing on some Microsoft 365 products starting from 1st March 2022

The newly announced Microsoft 365 price changes will come into effect as your annual subscription renewal dates come around, but no later than 30th June 2022.  These renewal dates were never needed to be known before, as all billing and licensing was carried out on a monthly/pro rata basis.  But the dates will now determine when the price increases apply to you.

What Microsoft 365 price changes should I expect?

Once the next annual renewal date for a product subscription comes round, after 1st March 2022, the following increases will apply.  They will apply no later than 30th June 2022 in any case.  No other products are affected, and existing prices will continue for those.

PRODUCT

OLD

NEW

INCREASE

Microsoft 365 Business Basic

£3.80

£4.50

18%

Microsoft 365 Business Premium

£15.10

£16.60

10%

Microsoft 365 E3

£28.10

£31.70

13%

Office 365 E1

£6.00

£7.50

25%

Office 365 E3

£17.60

£20.20

15%

Office 365 E5

£30.80

£33.40

8%

New product prices are subject to possible slight changes.

If you would like to discuss the price increases with a member of our team, or to know exactly if/when you will be affected, please call us on 01202 612333.

Move to NCE (New Commerce Experience)

All Microsoft Partners reselling Microsoft 365 and Azure products are having to migrate their customer base and subscriptions from the old Microsoft “CSP” platform over to “NCE”.

Treken will handle this in the background, but the important changes for you to be aware of are:

1.    All subscriptions will now be tied to a strict minimum 12 month period.  Every time a license is added,  you will be committing to being billed for it for 12 months.

2.    You can increase license count at any time,  but decreasing will not remove the billing commitment for those licenses (you will still be charged).

3.    There is a only a 7 days (168 hours) cancellation window for any licenses purchased.

4.    Upgrade paths will exist to allow you upgrade from one product to another without penalty, but not to downgrade.

5.    You can retain Monthly subscription benefits, rather than Annual Commitment, but it comes at a 20% premium (in addition to the price increases above).

Treken will contact you before we move you into the NCE platform, so that any subscription changes can be made before the 12 month commitment, and to ensure you understand the points above.  
From 10th March 2022, all new license purchases will need to be via NCE, even for existing customers.

Talk to Treken

To discover more about the upcoming changes and what this might mean for you and your business, get in touch with one of our IT experts on 01202 612333 or enquire here.