Microsoft License Rate Increase As Of March 14, 2022
We wanted to make sure you know about a Microsoft pricing increase that takes effect now on March 14th, 2022, as a part of their New Commerce Experience (NCE).
Microsoft Extends License Price Update
Per-license rates will go up, and there will also be changes to monthly and annual commitment structures. Make sure to review the following price increases and other details so you know what to expect on your invoice in March.
Why Is Microsoft Changing Their Rates & Models
Primarily, Microsoft is endeavoring to both simplify the way their plans work and to offer flexibility to businesses like yours where needed. NCE offers a far less complex system of plans and rates than Microsoft’s previous model and allows businesses to better harness the exact services they need.
How Are Microsoft's Prices Changing?
Effective 3/1/2022, Microsoft has increased the following license prices (shown in CAD):
| Microsoft 365 Plan |
Old Rate (per license) |
New Rate (per license) |
| Business Basic |
$6.40 |
$7.70 |
| Business Premium |
$25.60 |
$28.20 |
| E3 |
$42.30 |
$47.90 |
| Office 365 E1 |
$10.20 |
$12.80 |
| Office 365 E3 |
$26.60 |
$30.60 |
| Office 365 E5 |
$46.60 |
$50.60 |
Should You Choose A Monthly Or Annual Commitment?
An important consideration is whether you opt for a monthly or annual license commitment. If you prefer the flexibility of changing license counts monthly, you will pay a 20% premium compared to the annual commitment rate.
However, it’s important to note that the commitments auto-renew, so you will want to track when you opt-in so you can review prior to the renewal date.
Furthermore, when you agree to an annual commitment, you are locked in at your current license count as a minimum. If you happen to dip below that number, you will not receive any discounts or money back within the one-year period.
Important Dates to Know
- March 1st, 2022: Four Enterprise SKUs, and two SMB SKUs are increasing in price as noted in the chart above.
- June 30th, 2022: All new licenses will need to be purchased through the NCE (and will be subject to term commitments and a 20% premium for monthly subscriptions).
- July 1st, 2022: All term renewals must be renewed through the NCE.
- February 1st, 2023: All remaining subscriptions must be moved to the NCE.
Key Decision Factors
- Monthly subscriptions are offered at a 20% premium price when compared to annual subscriptions, which are less flexible.
- Licenses that are canceled mid-month will be billed for the full month.
- After a 72-hour cancellation period, the client is committed to the full term of the agreement with no early cancellation.
- Clients cannot move subscriptions to a different provider while committed to a term.
- Companies can have a mix of both annual and monthly subscriptions.
- Term commitment percentages can vary based on your business forecast.
- Add-ons (i.e., Phone licenses) are purchased as individual Subscriptions, distinct from the base product Subscriptions (which means that end dates may not be the same).
- Product upgrades are available for higher-paid SKUs only; you cannot go from a higher-paid SKU to a lower-paid SKU (Full and Partial upgrades are available).
- Subscriptions will automatically renew with active licenses and quantities unless notified 30 days prior to the renewal date.
Want To Harness Microsoft 365’s Benefits?
Don’t settle for a sub-par cloud experience, and don’t think you have to be the one managing it. The Coleman Technologies team can take that off your plate for good, allowing you to take advantage of its optimized user experience and focus on your work.
Questions about these new rates? Get in touch with the Coleman Technologies team.
