Microsoft Cloud Subscriptions

March 2022 Changes

What’s Happening?

On March 1st, 2022, Microsoft is changing their subscription offerings, term offerings and pricing.

All new cloud subscription purchases for Microsoft 365, Dynamics 365, Power Platform, and Windows 365 are moving to what Microsoft calls the “New Commerce

Experience or NCE”.

The NCE journey started back in 2019 with Azure related products and Microsoftcontinues to invest in consolidating their products under this platform to

provide customers with more benefits and features

Key Benefits

Ability to schedule changes at subscription renewal.

Autorenewal toggle option.

More simplified billing and renewal dates.

Increased accounting efficiency with annual and multi-year subscriptions with option to pay annually.

Monthly subscriptions without annual commitment pricing will be 20% higher than the

annual subscriptions paid monthly or annually. This type of subscription will

allow companies flexibility to change licenses monthly.

Key Changes

Pricing increases are scheduled for March 1, 2022.

Annual subscriptions paid monthly or annually have an annual commitment. All annual

subscriptions paid monthly or annually cannot be cancelled until the renewal period.

Annual subscriptions will not be able to decrease license counts based on your fluctuation in staff. You can increase licenses at any time. You will only be able to decrease license counts during the renewal period.

Does this affect our company?

This affects all businesses that have Microsoft cloud subscriptions for business, like Microsoft 365, Office 365, Dynamics 365, or Power Platform subscriptions through Microsoft directly or a Microsoft Partner /Cloud Solutions Provider (CSP) like Integrato.

What does this mean for us?

Microsoft will be running promotions starting January 10,

2022 to encourage customers to migrate to the new commerce experience earlier

than March. Since pricing increases are expected to be around 15% or more, we are also encouraging our clients to

take advantage and lock in the promo prices.

Examples of price increases within M365 per user, per month:

• Microsoft 365 Business Basic (from $5 to $6 per user)

• Microsoft 365 Business Premium (from $20 to $24)

• Office 365 E1 (from $8 to $10)

• Office 365 E3 (from $20 to $23)

• Office 365 E5 (from $35 to $38)

• Microsoft 365 E3 (from $32 to $36).

These increases will apply globally with local market adjustments for certain regions. There are no changes to pricing for education and consumer products his time.

Once you have an annual subscription (paid monthly) in the NCE, you will no longer be able to decrease your license counts at any time. You’ll be locked into that license count and can only increase the license count.

What if we don’t act now?

•  When your current subscriptions expire, you’ll need to purchase new subscriptions and promotions may no longer be available depending on when your subscriptions expire.

•  If you don’t do a thorough review of your subscriptions, you’ll get locked into your license counts and cannot decrease license quantities.

•  You will be locked in for a year unless you choose to buy the monthly subscriptions that are around 20% higher per month vs the annual subscription.

•  In February 2023, all remaining subscriptions on the previous experience must be moved to new commerce because they cannot be renewed on the previous CSP experience.

How can Integrato help?

Let’s take a look at your subscriptions and discuss what changes you can expect and if you’re subscriptions are optimized for this transition. Let’s discuss what subscription terms would work best for your company.

If we are not your Microsoft Partner, that’s okay too. Let’s have a conversation to see how we can help plan and find potential savings.

Trusted Gold Microsoft Partner for

Microsoft Dynamics and Cloud Products