Microsoft Is Increasing Their Prices: Here’s What You Need To Know

Microsoft license

Microsoft has made some dramatic changes in its cloud offerings and pricing structure. If you have not already received a notice from your Microsoft vendor, you need to pay close attention because these changes will impact your business.  

It’s important to understand what will change and how you can use this opportunity to continue to provide your business with the support it needs to grow. At the same time, you want to make sure you protect your business financially and secure the best possible deal you can. 

Here is what you need to know about the coming price increase and services change Microsoft will roll out by March 1. 

What Is Microsoft Changing? 

Back in 2019, Microsoft launched the New Commerce Experience (NCE) for Microsoft Azure customers. This offering is now expanding to include those who use Microsoft 365, Dynamics 365, Windows 365, and Power Platform. Cloud customers are now being shifted towards this new process. 

Microsoft has designed this system to simplify the usage, contracts, and subscriptions they offer. It will also impact pricing and result in raised prices. Since the company has not updated their prices in over 5 years, however, this largely will bring them in line with the market. 

There will be a variety of different types of options and packages available, including different incentives and discounts. If you have not walked through these options carefully with an expert to determine what your company needs and how to get the best package possible, you will want to make this a priority, as the deadlines will be coming quickly. 

Important Dates to Know 

Microsoft has announced that they will no longer offer clients their Open Business Licensing, which will go into effect throughout 2022.  

What has already happened 

Beginning in January 2022, all Office 365, Microsoft 365, and Dynamics 365 licenses became eligible to move from the old CSP to the new NCE. However, within the coming months, clients will begin to be required to purchase new licenses and renew old ones through the new pricing and program structure. Businesses not prepared might find themselves ill-equipped to decide the product they want to purchase and will likely pay more than necessary. 

What comes next 

Those who use Microsoft cloud products need to pay particularly close attention to March 10, 2022. This is the closing deadline for making several important Microsoft decisions, which means that you need to prioritize preparing for this shift and seeing how you can maximize your opportunities moving forward. 

Why Do I Need To Pay Attention to These Changes? 

The changes Microsoft is making to their cloud services will directly impact your business and the amount you pay for your Microsoft access. Failing to pay attention to these deadlines could result in extreme price increases that you could have avoided. If you do not want to miss these decision deadlines, you want to make sure you have a solid understanding of how you want to structure your new package and how you can maximize your savings. 

The cloud shifts how you think about contracts 

Before the cloud was everywhere, customers were limited on how they could purchase perpetual licenses. Say you purchased 200 licenses, you needed to pay upfront for all 200 licenses and were stuck with those licenses, no updates or upgrades available unless you purchased “software assurance” for updates and patches, still no upgrades. Then in 2015, the CSP (Cloud Service Provider) program was established to allow customers to purchase the cloud version through your MSP, allowing you to buy licenses for a term period. It also allowed the option of purchasing licenses and paying monthly with no commitment.  You could add or delete on a monthly basis.   

In 2022, the CSP is now being phased out for the streamlined NCE program. Ultimately, it offers term licenses, 1 year or 3 years paid annually or monthly that only allows for “adds” during the term, no deletes.  If a customer needs the flexibility to be able to add/delete licenses monthly, there is a monthly license with a “no commitment” agreement that will still be offered as a premium service but there will be an even higher increase pricing for the flexibility. 

To come out ahead with this Microsoft change, you need to know how you can set up your accounts to save money. At the same time, you want to make sure your company is protected and ready to grow with the technology you have available. 

How Protocol Networks Will Simplify This Process 

If you use Office 365, it’s important to fully understand your options and prices as Microsoft introduces these changes to their professional cloud products. 

When you work with us at Protocol Networks, we will walk you through this process. We will work with you to understand your current Microsoft usage, such as how many employees use a version of Office 365. We will also discuss your plans for growth and help you determine precisely what cloud solutions you need to help your business thrive.   

Once we know your business needs, we can then help you find all the possible discounts and incentives that apply to you so that you can secure the best possible price. 

Microsoft helps to power your business, and as your cloud provider, Protocol Networks will help you secure the package you need to keep it working for you. Contact us today to begin this conversation.