Microsoft licensing changes for Microsoft’s Commercial products will go into effect beginning of March. Here’s what you need to know regarding important dates, licensing structure changes, and pricing information surrounding these changes.   

General changes to note:  

  • Pricing increases go into effect March 1, 2022  
  • Annual subscriptions will be enforced, though the monthly subscription option will still be available for a 20% premium of the annual cost  
  • Microsoft is simplifying their license procurement process – the new commerce experience (NCE) will consolidate all methods of purchasing licenses (direct, third party, etc.)  
  • The new commerce experience will offer seat-based licensing – subscriptions for cloud services are offered “per seat” no matter the number of devices these services are hosted on  
  • Seat-based subscription for licenses may be added at any time, but licenses may only be reduced within a 72-hour window at your subscription start date and renewal date  

Pricing Changes:  

License  Current Price  New Price  % Increase  
M365 Business Premium  $20  $22  10%  
Microsoft Business Basic  $5  $6  20%  
M365 E3  $32  $36  12.5%  
O3665 E3  $35  $38  8.6%  
O365 E5  $20  $23  15%  
O365 E1  $8  $10  25%  
Table 1 – Pricing changes effective 03/01/2022

Important Dates:  

  • March 1, 2022: Price increase for select M365 and O365 commercial products across all platforms  
  • March 10, 2022: Any new seat-based licensing must be placed through the new commerce experience  
  • March 31, 2022: Discount pricing (discussed below) for annual agreements end (tentative)  
  • June 30, 2022: Final day to renew seat-based subscriptions using legacy offer/existing platform (as opposed to the new commerce experience)  
  • July 1, 2022: Will no longer be able to renew legacy subscriptions  

Licensing Promotions:  

  • Annual subscriptions can receive a 5% discount for up to 2400 seats, which will tentatively end on March 31, 2022, but may extend through June 30, 2022  
  • Monthly subscriptions can be price matched with the annual price for up to 2400 seats, which will end on June 30, 2022  

If you’d like more information on Microsoft’s licensing changes, or want to discuss how this might affect your organization’s licensing, email, or reach out via our Contact page for a free consultation!