Microsoft announced price changes in mid-September, including some that went into effect on September 1, 2021.
Here is a summary of how the program is changing:
Microsoft is moving away from disparate program-specific offers, including EA, Select, Open, Web Direct and CSP, to three new motions:
- Breadth:CSP (cloud service provider)
- Enterprise:EA (enterprise agreement)
- Self-Service:Web Direct (credit card)
With the alignment of CSP into the NCE, there are some dramatic changes proposed, which underpin how you as a customer will need to adapt.
The current familiar transactional models — cancel anytime, add, or reduce seats as required, pay per day, annual term only for seat-based offers in the CSP Program — will be changed.
Microsoft Term Changes to take effect March 2022
Short-term commitment for term flexibility: one-month commitment
- Monthly subscriptions at a premium.
• No price protection; month-to-month exchange rate.
• 72-hour cancellation window.
• Pay per day will not exist; upgrades are permitted mid-term for some products; downgrades are not permitted on any license.
• Quantity increases are possible, but no decreases during the term.
Long-term commitment for price predictability: one-year or multi-year commitment
- Stability in the price paid for the term of the contract.
• Annual subscriptions can be paid monthly or upfront.
• There will be price advantages for annual agreements.
• 72-hour cancellation window or at term renewal at the end of the year period.
• Upgrades are permitted mid-term for some products; downgrades are not permitted on any license.
• Quantity increases are possible, but no decreases during the term.
| Microsoft Plan | List Price Increase (Per User) |
| Microsoft 365 Business Basic | $5 to $6 |
| Microsoft 365 Business Premium | $20 to $22 |
| Office 365 E1 | $8 to $10 |
| Office 365 E3 | $20 to $23 |
| Office 365 E5 | $35 to $38 |
| Microsoft 365 E3 | $32 to $36 |
Key Changes
Price increase summary:
- Windows Server:10% price increase for Windows Server Standard, Win Server CAL, and Win Server RDS
- Office Long Term Servicing Channel* (LTSC):Price increase at the time of general availability, which is expected in the end of October. *Office LTSC is the next perpetual version of Office for commercial customers.
- Office:10% price increase for Office Professional Plus and Office Standard
- Office 365 and Microsoft 365:Price increase on March 1, 2022 as follows (for commercial and business customers, not PubSec or consumer):
| Current Experience | Annual term only for seat-based offers in the CSP program
Cancel at any time* |
|
| New Experience | “Short-term commitment for term flexibility”One Month Commitment |
“Long-term commitment for price predictability”One Year or Multi Year Commitment |
Added Value of Our New Commerce Experience
Given the large-scale changes announced, we foresee that customers will make use of a blend of short-term and long-term commitments on NCE-based on the predictability of their workforce numbers. For instance, if they have contract workers or seasonality to their business, short-term commitments might be better suited.
Microsoft has announced the ability for subscription changes to be scheduled, which removes the possibility of admins needing to make changes on the anniversary dates.
ing to make changes on the anniversary dates.