There will be some new developments involving Microsoft 365 subscriptions that require immediate attention. Microsoft is making changes to the 365 suite of products and certain other services, including pricing increases and changes to service models. These changes will be implemented by Microsoft on March 1st, 2022.
Microsoft originally intended to implement these changes in October 2021 but delayed the rollout until March 1, 2022.
Here is a basic summary of changes to the Microsoft 365 subscription services:
1. Microsoft will increase their prices for the select license SKUs by fifteen percent (15%).
Enterprise Subscription SKUs:
- Office 365 E1: $8 – $10
- Office 365 E3: $20 -> $23
- Office 365 E5: $35 -> $38
- Microsoft 365 E3: $32 -> $36
Small Business Subscription SKUs:
- Microsoft 365 Business Basic: $5 -> $6
- Microsoft 365 Business Premium: $20 -> $22
2. Customers have the option to continue with month-to-month pricing or agree to annual contracts.
a. Customers who continue with a month-to-month plan will see an additional increase of twenty percent (20%) to continue to use the Microsoft 365 services on a month-to-month basis. The benefit of a month-to-month subscription is the flexibility to add or subtract users without financial penalty. These plan changes cannot be made during a term agreement;
b. Those customers who agree to an annual term will not incur the additional twenty percent (20%) increase, however, that cost savings comes with some additional conditions which include:
- a minimum “floor” amount of users to which your business cannot go below during the annual term (for example if you lock in 100 users at the start of term and then drop down to 95 users, you will still be charged for at least 100 users during the entire year of the contract)
- if you add users over and above the minimum then the increased number will continue for the time remaining on that year (for example, if you increase to 110 users at the six (6) month mark, you will now be required to pay a floor minimum users of 110 for the last six (6) months of the contract)
- Microsoft will not permit you to switch to another service provider, and you will be obligated to continue to use services under the term of your choice for the balance of the time remaining on the contract, even if you wish to switch providers during the term.
DiamondIT is here to help you make the right decision for your business, and we will be happy to discuss the best plan for your businesses’ continued use of Microsoft 365. Unfortunately, Microsoft has given us a very small window of time to make this decision. Please get in touch with us by February 23, 2022, to allow sufficient processing time. Once we receive your decision on which option best suits your company, we will send you a Microsoft Agreement for your review and approval. We will process the new Microsoft 365 Agreement of your choice on your behalf.