Microsoft is making licensing changes in 2022 - here's what you need to know
Microsoft is making changes to its CSP programme. The new licence form called New Commerce Experience and will be available from January 2022.rom 1 March 2022 there will also be a price increase on certain Microsoft licenses (see below). These changes will affect both how you as customers buy and how we as partners of Microsoft deliver licenses in the future. Sow we on WeSafe help our customers to find the best possible solution for the changes.
These terms and price changes will apply across all transaction models offered by Microsoft. Microsoft justifies the price increase by the fact that it has introduced many new features in its services in recent years and that it has not increased its license prices since 2013. The changes apply below services. Read more about Microsoft's news here!
New price list in USD (Swedish price list will be released in January 2022)
- Office 365 E1 (up to $10 from $8)
- Office 365 E3 (up to $23 from $20)
- Office 365 E5 (up to $38 from $35)
- Microsoft 365 Business Basic (up to $6 from $5)
- Microsoft 365 Business Premium (up to $22 from $20)
- Microsoft 365 E3 (up to $36 from $32)
CSP licenses today
Today, our customers pay for their licenses on a monthly basis and are free to increase or decrease the number and change the license type. All customers have an anniversary date on their contracts but there are no fees associated with reducing or removing their licenses.
New customers will not have the option to choose traditional CSP licenses from March 2022 and existing customers will not be able to stay on after their anniversary date. Licenses will not be converted automatically and all customers will need to make an active choice before their anniversary date of when current licenses will expire. Of course, we will make the move free of charge for our customers and it will not affect any features, only the transaction model.
New Commerce Experience
- Monthly contract
With monthly locking in New Commerce, it works much as it does today, but Microsoft adds a 20 percent price premium over list price
- 12 month contract
If you choose to bind your licences for 12 months, you get Microsoft's list prices. You can choose between annual and monthly payments. You can always add licenses and increase the license type but not minsthe number of licenses or the license type. This means that reductions and changes to the licence form take place on the anniversary date of the contract.
If you want to keep the cost down and at the same time be flexible in reducing the number of licences, you can combine licences with 12-month contracts as well as licences with monthly contracts.
All our customers with Azure are already running New Commerce and no changes are planned for Azure.
Microsoft is offering two promotions starting in January 2022:
Annual Term promotion - The promotion offers a 5% discount on the current price in the CSP price list and is valid from January 2022 to June 2022 (subject to Microsoft's ability to extend the promotion). The promotion applies to both annual payments and monthly payments.
Monthly Term Promotion - Campaign is as väljer not to commit annually but want the flexibility of the months20 percent discount on the new monthly price from January 2022 to June 2022.
Lowest licence price plan - Bind licences in January and February
As New Commerce will be launched in January 2022, and the price increase will take place from March 2022, you can lock in your prices for 12 months in January and February, before the Microsoft price increase takes place. In addition, Microsoft is running a promotion with an extra 5 percent discount for all customers who bind their licenses by June 2022.
This means that if you commit during January or February, you will receive a 5% discount on all licenses included in the promotion, which includes all base licenses such as Microsoft 365 Business Premium, E3 and E5. Full list to be announced in January.
Do you do this fyear you a 5% discount, delay Microsoft's price increase for 12 months and avoid the 20% surcharge for running a monthly contract. We believe this option will suit most customers.
In our licensing portal, WeSafe Cloud Marketplace, you will still be able to manage your licenses but New Commerce is new, it will take some time of development before all features are available. Microsoft releases its APIs in january and the licensing portal is being built to handle New Commerce. Hopefully this work will be completed this year.ebruary or March. Read more about the WeSafe Cloud Marketplace here.
What do you need to do now?
I january we will contact all customers to assist with a so cost-effective plan for the changes to take effect.. You will need to sign a new licence agreement with us that reflects the new terms. This will be done digitally. In order to make the most of the discounts, we will carry out the conversion during february month. If you have any questions before then, you are of course always welcome to contact us.
What happens if you do nothing?
If you do not make an active choice before the licence changes your old will be terminated on the anniversary date of the current contract and will assume "Expired"status in Microsoft 365. This will happen at the earliest from 30 June 2022. In other words, it is important to take a position in order not to risk being unlicensed. We will sjely send several reminders to you before this happens but as there are many customers to be converted, we would appreciate it if as many as possible responded during january.
Welcome to contact us if you have any questions
At WeSafe, we understand that Microsoft's news can create many questions and concerns. If you need support or guidance on the changes, please feel free to contact us and we'll help you in the best way we can.