The New Commerce Experience Microsoft pricing – What does it mean?

Did you know that Microsoft’s Office 365 commercial pricing is set to increase – with all current license subscription needing to transition across before June 30th? Lock in your lower rate by renewing before March 14th.

Since Microsoft launched its Office 365 product over a decade ago, it has not substantively increased pricing. Now it is seeking to reflect the considerable investment that has been made to its suite of applications with changes to its commercial pricing.

At Codestone, we are continually looking after our customers’ interests and advise them on the best strategies to adopt in response to changes in business best practices, technology evolutions, and in this case, increases in technology costs.

Let’s outline the Microsoft commercial pricing changes that are on the horizon and how partnering with us can help minimise the impact to your bottom line.

What’s changing?
Microsoft has invested heavily in its product line, expanding Office 365 to Microsoft 365, which combines Office, Windows and Enterprise Mobility and Security (EMS). To reflect the increased product value, Microsoft is introducing price increases and changes to its terms and conditions, which it has labelled the New Commerce Experience (NCE).

Price Increase detail
Both Office 365 and Microsoft 365 license are affected by price increases of between 8.5% and 25%:

  • Office 365 E1 licences +25%
  • Office 365 E3 licences +15%
  • Office 365 E5 licences +8.5%
  • Microsoft 365 E3 licences +12.5%
  • Microsoft 365 Business Basic +20%
  • Microsoft 365 Business Premium +10%

This new pricing will start from 10th March 2022 for new orders and June 2022 for renewals.

Term changes
The existing options for a 1-year or 3-year commitment remain (where available), but Microsoft are introducing a monthly rolling contract, with the facility to cancel licenses any time after the first month. However, this facility comes at a hefty premium of 20% in addition to the new pricing outlined above.

Restricted Cancellation
Cancellation terms are also changing for the 1-year and 3-year options, and Codestone can help you understand the implications for your business.

Beat the price rise before March 2022
Whilst there is no avoiding the price increases in the long term, it is possible to defer the impact by renewing contracts early for a new term before 14th March 2022. This will lock in your existing costs until the expiry of your new contract.

As a Microsoft Gold Certified Partner, we can help you take advantage of this facility, either by renewing your existing licences or by purchasing new products on your behalf. To reward our existing and new customers we are also offering a further 5% discount on existing licence costs for the first 6 months when renewing or purchasing through Codestone and pre-paying for the 1 or 3 year term of the contract.

Why Codestone?
We are proud to be recognised domain experts and Gold partners of both Microsoft and SAP, with 25+ years of IT experience. We have a breadth of Microsoft expertise across the Microsoft 365 and Azure technology stack, with seven Gold and three Silver Microsoft Competency Awards across 11 disciplines.

We offer a future-proof, end-to-end solutions from solution design and technical consultancy to implementation, change management and training, and onwards to 24x7x365 integrated systems support and continuous service improvement management. Coupled to this, Codestone has the UK’s richest Cloud and Managed Services offerings for SME and Mid-Market businesses.

Customer experience with Codestone
In particular, we pride ourselves on the long-term relationships established with our customers, which continue to deliver outstanding results for their businesses.

Lock in your Microsoft price and future-proof your business today
So, whether you are a Microsoft-only organisation, an SAP-based business which also operates a Microsoft environment or are thinking of moving to Microsoft or Office 365, we can help you lock in the best pricing and extract the maximum benefit from your investment.

REGISTER HERE to take advantage of this offer or simply find out more.

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