***Edited 1st February 2022 – To reflect updated information issued by Microsoft.***
Microsoft has officially announced 2022 pricing updates for UK customers of Microsoft 365, Office 365 and many related cloud services.
The hugely popular cloud-based collaboration software is used by millions of organisations around the globe, and assists around 300 million end-users to work more productively.
New pricing – the first mainstream increase for a decade – is set to go-live from March 2022, and will see increases of between 0% and 25%, depending on license type.
To help businesses know what to expect, we’ve assembled a short guide to the upcoming changes.
Which License Types are affected?
Although exact UK figures have not been published in full yet, indicative US pricing changes are expected to be as follows:
|Microsoft 365 Business Basic||$5||$6||20%|
|Microsoft 365 Business Standard||$12.50||$12.50||–|
|Microsoft 365 Business Premium||$20||$22||10%|
|Office 365 E1||$8||$10||25%|
|Office 365 E3||$20||$23||15%|
|Office 365 E5||$35||$38||9%|
|Microsoft 365 E3||$32||$36||12.5%|
|Microsoft 365 E5||$57||$57||–|
|Microsoft 365 ‘F’ Plans||No Change Expected|
|Microsoft 365 ‘A’ Plans||No Change Expected|
|Microsoft 365 Personal Plans||No Change Expected|
Will anything stop working?
Unfortunately, yes – Microsoft 365 and Dynamics 365-based data and services will cease to be available to businesses using old subscriptions after 1st July. All users will need a new NCE license assigned to them by their Microsoft licensing provider before this date. Microsoft Partners will continue to provide, deploy, manage and administer licensing, exactly as before.
However the service itself will remain the same – all old license options will be available under new NCE license types and new pricing.
Why is Microsoft making this change?
This is the first such price rise for a decade, and reflects the huge leap forwards in the quality of technology, range of apps and business value of cloud-based services that have been added to Office 365 since the package originally launched in 2011.
Can I ‘lock in’ the old price in any way? / Any offers… on offer?
Organisations who replace their old licensing with new SKUs prior to the 1st February are able to ‘lock in’ some of the legacy-pricing, and avoid the upcoming price rise until February 2023.
Purchasing new licensing also reserves this price for additional users that the customers might add during the term – meaning that customers expecting to increase their staff/license count later this year may be incentivised to move themselves to new licensing now, before pricing changes take effect.
However, 2022’s new annual licensing prices also includes annual minimum terms that restart each year at renewal, so licenses do not ‘leave contract’ entirely after the first year as before. Please contact Lineal for more information.
So many license types – help!
Don’t panic – we’ve published a handy guide to what each license type contains, and this page will be regularly updated with the latest information. Alternatively, please contact our team and we’ll be happy to clarify your current or future licensing.
Where can I get more information?
Please contact our team via: [email protected] or 01271375999.