Microsoft Pricing Updates: Changes in Microsoft 365 Prices For 2022
Microsoft has announced changes in their Microsoft 365 license pricing to be effected in March 2022 to support New Commerce Experience (NCE). Given the license prices have remained relatively constant for over a decade, it is good to look at what to expect on your invoice after the reviews.
Taking a glance at the new prices will help you adjust your IT budget. If you have incorporated managed IT into your business, your support team should help you review the changes and identify the right license plan for your business. However, if you are still looking for a reliable IT partner, Resolved Business IT Solutions Inc. will provide Microsoft support services for your business.
What is New Commerce Experience (NCE)?
NCE is a program that reduces licensing complexity and costs for customers in the Cloud Solution Provider (CSP) program. Through NCE, customers can also enjoy better choices and flexibility in how and where they make their purchases. More and more businesses are now moving to NCE to expand their customer base.
Initially, NCE was only available on Azure but has now expanded to include Microsoft 365. Businesses that want to take advantage of NCE can now use the per-seat model of Microsoft 365. If you are already using the per-license or per-seat model, the cost is expected to go up as shown below. The new price list also helps businesses that may want to use the per-seat model to estimate their license costs.
Reason Behind the Price Changes
According to Microsoft, Office 365 had only seven applications at its launch in 2011. Since its launch, Office 365 has undergone massive improvement to meet the needs of businesses and their clients. Today, Microsoft 365 has over 24 apps that integrate to provide an all-around solution for businesses. Despite the improvements made to the applications, license prices have remained relatively the same.
However, in response to demand and the need to redefine how businesses operate and interact with their clients, the company has introduced New Commerce Experience (NCE). Although not directly related to NCE, Microsoft 365 enables businesses to improve their workflow through communication and collaboration, security and compliance, and AI and automation. Microsoft 365 has, therefore, been improved to help businesses like yours tap into the benefits of NCE, which explains the reason for the price changes.
The New Prices
As of the first of March, your invoice will reflect the following changes in price for the different products;
- Microsoft 365 Business Basic (from $5 to $6 per user)
- Microsoft 365 Business Premium (from $20 to $22)
- Office 365 E1 (from $8 to $10)
- Office 365 E3 (from $20 to $23)
- Office 365 E5 (from $35 to $38)
- and Microsoft 365 E3 (from $32 to $36).
Note, the changes in prices only apply to commercial products. Educational products are also not affected by the changes.
You can choose between the monthly and annual license, depending on your operations. Since the licenses are based on the number of users, seasonal businesses should go for monthly options. The monthly option allows you to scale up or down depending on monthly demand. However, if you select the monthly plan, you will pay 20% more than a business that opts for an annual plan.
We Can Help
If you have more questions about the rates or the license plan that best fits your business, you can reach Resolved IT for help. At Resolved IT, we provide Microsoft support services and other Managed IT services. Contact us today at 604 335 5574 to speak to one of our representatives on how you can use the NCE and Microsoft 365 to move your business to another level.
Thanks to our friends at Orion Networks in Columbia, MD for their help with this information.