Microsoft 365 New Commerce Experience

If you haven't heard already, commercial pricing for Office 365 and Microsoft 365 is increasing as of March 2022. In this price rise, Microsoft are also introducing a New Commerce Experience program that will affect how licenses are purchased. With Microsoft pushing long-term commitment, monthly billing under the NCE is also subject to a 20% price increase.

This is the first time Microsoft has increased it’s pricing since Office 365 was launched over ten years ago, though to be clear, we’re as thrilled about these price hikes as you are.

Microsoft 365 and Office 365 Price Changes

The pricing changes announced that go into effect on March 1st 2022, are related to the following service offerings:

• Microsoft 365 Business Basic
• Microsoft 365 Business Premium
• Microsoft Office 365 E1, E3 and E5
• Microsoft 365 E3

Pricing is currently shown in US Dollars as at the time of writing UK pricing is not yet available. Price increases do not apply to education or non-profit organisations at the time of writing, this may change in the future.

Microsoft Plan	Price Increase (Per User)	Percentage Increase
Microsoft 365 Business Basic	$5 to $6	20%
Microsoft 365 Business Premium	$20 to $22	10%
Microsoft Office 365 E1	$8 to $10	25%
Microsoft Office 365 E3	$20 to $23	15%
Microsoft Office 365 E5	$35 to $38	9%
Microsoft 365 E3	$32 to $36	13%

What is the New Commerce Experience (NCE)?

Microsoft as also recently announced changes in how customers purchase licenses through their Cloud Solution Provider program.

Subscription Period	Monthly Subscription	12 Months	36 Months
Payment Options	Monthly	Monthly and Annually	Monthly, Annual and Prepay
Cancellation/Adjustment Window	72 Hours	72 Hours	72 Hours
License Changes	Increase always, decrease within cancellation/adjustment window	Increase always, decrease within cancellation/adjustment window	Increase always, decrease within cancellation/adjustment window
Pricing	20% increase over 12 month subscription	Standard	Standard
Benefits	Flexibility	Cost savings and price lock	Cost savings and price lock

Monthly subscription

With the NCE you will have the ability to purchase your Microsoft 365 licences on a monthly basis without an annual commitment. Microsoft is now offering this to provide flexibility to customers that need to make monthly changes to their Microsoft 365 or Office 365 licences plans and seat count. This subscription does come at a 20% price increase across all licence plans.   

12 month subscription

Through the NCE, you’ll have the opportunity to commit to your licences through a 12 month subscription. Unlike the legacy CSP model customers who consume on a 12 month subscription, you will have the option to be billed on a monthly or annual basis. 

With the 12 month subscription, your pricing will be locked in for the entire term – allowing you to benefit from the additional cost savings of any price increases due in that time. This subscription will allow you to increase but not decrease the seat count. 

36 month subscription

Microsoft is introducing a Multi Year Pricing to the NCE, allowing you to secure a 3 year pricing for longer term licencing commitments. With this subscription, you’ll have the option to be billed monthly, annually or upfront. This subscription will allow you to increase but not decrease the seat count. 

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).

If you choose to sign-up for annual or multi-year subscription, please be aware that you will not be able to move to your current Microsoft licensing to a new IT support provider for the duration of the contract. If you sign up for a 12 month contract, you will not be able to change providers for the full term; and similarly with a multi-year contract.

Frequently Asked Questions

We've put together some questions that we have been frequently asked in order to help you understand which products are affected, what can do to help you keep your licensing costs to a minimum, and changes to the way you purchase licenses.

When will the new prices go into effect?

New pricing will start as of March 1st, 2022.

Which packages are affected?

• Microsoft 365 Business Basic
• Microsoft 365 Business Premium
• Microsoft Office 365 E1, E3 and E5
• Microsoft 365

Will these prices increases apply to education or non-profit?

No, price increases are for commercial licenses only.

Why has Microsoft made this decision?

According to Microsoft, the new prices reflect the huge rise in remote working.

Will you be able to reduce the number of licenses you have?

You will only be able to reduce the number of licenses you have at the end of your term. If you sign-up for a 12 month term, you can only reduce the number of licenses after the 12 month period is over. If you sign up for a multi-year term, you will only be able to reduce the number of licenses at the end of the term.

Can you downgrade packages?

Similarly to reducing the number of licenses you have, you can only downgrade packages at the end of the full term. For example, if you have a Microsoft 365 E5 license on a 12 month term, you will only be able to downgrade to another package such as Microsoft 365 E3 and the end of the full term.

Can you mix and match licenses?

Yes, you can mix subscription terms for licenses. For example, you can have annual E5 licenses and monthly Business Premium licenses.

Can you change Microsoft Partner's mid term?

No, you cannot change partners mid-term. If you commit to an annual or multi-year term, you will only be able to change providers at the end of the subscription term. If you sign up for a 3 year term, you cannot change partners for 3 years.

When is the Monthly Commitment?

Your commitment is a full 30 days from purchasing a license.