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Microsoft 365 Price Increase as of 1st March 2022

Microsoft 365 Price Increase as of 1st March 2022

Microsoft have announced mandatory changes to both the pricing, and subscription, options for Microsoft 365 as of 1st March 2022. We have included a detailed breakdown of the changes and options below; however, to summarize – customers who opt to purchase, or continue to use, rolling monthly licence agreements will see the largest increase of 20% to the existing pricing.

Existing pricing can largely be maintained by committing to an annual agreement and payment terms, although some products such as Business Basic and Business Premium are subject to a price increase.

Please note that these changes are being applied by Microsoft. These are out with our control and will impact all Microsoft resellers.

What is changing?

We will contact all existing customers to provide the options in relation to their current agreement.

  • All rolling monthly agreements are increasing by 20%
    • Annual agreements which are paid monthly are subject to different terms. Innovec would encourage annual customers to move to annual payments at renewal to secure existing prices.
  • 6 popular products are increasing by up to 20%
    • Including Business Basic and Business Premium

In short, if you need the flexibility of a rolling monthly contract, Microsoft have introduced a premium meaning you will have to pay more.

Until now, all Innovec customers purchased Microsoft licencing under a previous reseller arrangement whereby minimum terms were not enforced. This allowed Innovec to provide easy scalability, up and down, to best suit your business.

The new changes override the current agreement and apply to all points of sale for Microsoft whether you purchase directly from them as a vendor, or via a reseller. As such, we are required to update our pricing and licence agreements in line with these changes.

For registered charities there are no changes to your ‘free of charge’ licences, for your ‘paid for’ licences these changes also apply.

What you need to decide:

There are a few options on how to proceed and our team will be able to discuss each of these in more detail to establish which is most suitable for your business.

The biggest question to ask is: Do you want/can you commit to annual or monthly terms, or a combination?

  • You can lock in the current pricing and pay annually, up front for the year ahead
  • You can continue to have licence flexibility and pay monthly for an extra 20%
  • You can ‘mix and match’ annual and monthly licencing

If you want to ‘mix and match’ annual and monthly licencing, you can decide the number of licences you can commit to on an annual basis. For example, you may have 10 licences on an annual term to take advantage of current pricing but choose to have another two licences on a monthly basis, paying 20% more but allowing you to adjust them as your business needs, such as for seasonal employees.

What’s this means for you

Our team will be in touch with what this means for your business and to help you choose what is best for your needs.

We still believe Microsoft 365 offers great value and continue to recommend it as a capable and useful solution for most businesses.

Further reading;

To read the full terms and conditions provided by Microsoft, click here