Microsoft Subscription Changes – What You Need to Know

Microsoft is restructuring their licensing model and making some drastic changes.

While we do not believe this is in the best interest of our clients, Microsoft is moving forward with these changes globally; whether you work with a Partner, like PremierePC, or purchase direct from Microsoft, these changes will be in effect in the coming months.

What Does This Mean for You?

While the product offerings will not change, this transition will affect your subscription terms. See below:

• Subscription term options: You may choose between monthly, annual (paid monthly or upfront), and 36-month subscriptions* (paid monthly, annual, or upfront).
• Monthly term offers will now include a 20% increase in price.
• Subscription Management: You may purchase a combination of both short- and long-term subscription terms.
• Cancellations: There will be a full refund issued if cancelled on day 1, and a pro-rated refund if cancelled on days 2 and 3. No cancellations, or change of channel, will be accepted after 72 hours.

*36-Month Terms available for Dynamics 365 (January 2022) and select Microsoft 365 subscriptions (March 2022). 36-Month upfront term subscriptions will be available starting March 2022.

Windows 365: Windows 365 subscriptions will only be available via the monthly term offer. Windows 365 subscriptions will not be subject to the 20% premium for monthly terms at this time.  

Nonprofit, Education and Government: Non- Profit and Education products will not be affected by the price increases.

Breakdown on Microsoft Price Increase:

Microsoft 365 Business Basic: $7.20 MTM / $6 annualized

Microsoft 365 Business Standard: $15 MTM / $12.50 annualized (No change)

Microsoft 365 Business Premium: $26.40 MTM / $22 annualized

Microsoft 365 E3: $43.20 MTM / $36 annualized

Timeline:

March 1, 2022 – all net new subscriptions will be on the new pricing model.

July 1, 2022 – all renewing subscriptions must be moved to new pricing model.

July 2023 – any remaining legacy subscriptions must be moved to new pricing model.

Let us know if you have further questions.

For the vast majority, monthly billing provides the most flexibility for our SMB Clients. You may work with us if you wish to move to annual, else we will continue with month to month.

PremierePC is available to discuss how this affects your business and support you through the transition.