Microsoft 365
Microsoft 365... what’s occurring in 2023
As of the 1st April 2023, Microsoft are introducing a new pricing structure for Microsoft 365. Here's what you need to know.
Microsoft 365 Price Increase 2023
Many of you may remember the changes back in March 2022 when Microsoft brought out the New Commerce Experience (NCE). This was the news that a price increase (that hadn’t been increased for over 10 years), was on its way along with an annual commitment on license numbers.
Following that news in 2022, this year Microsoft have announced that as of the 1st April 2023 there will be another price increase, and this will effect anybody that is outside of the annual NCE commitment. Microsoft have also documented that the prices will be reviewed twice a year.
For those who committed to the NCE commitment, you are locked into the prices agreed before the 1st April 2023. On the renewal of your annual commitment your subscriptions will increase inline with the current fee.
The following prices have been confirmed for the UK.
Following that news in 2022, this year Microsoft have announced that as of the 1st April 2023 there will be another price increase, and this will effect anybody that is outside of the annual NCE commitment. Microsoft have also documented that the prices will be reviewed twice a year.
For those who committed to the NCE commitment, you are locked into the prices agreed before the 1st April 2023. On the renewal of your annual commitment your subscriptions will increase inline with the current fee.
The following prices have been confirmed for the UK.
Annual Commitment
| Product Suite | Old Cost | Monthly Cost |
|---|---|---|
| Exchange Online Plan 1 | £3.00 | £3.27 |
| Exchange Online Plan 2 | £6.00 | £6.54 |
| Microsoft 365 Business Basic | £4.50 | £4.90 |
| Microsoft 365 Business Standard | £9.40 | £10.30 |
| Microsoft 365 Business Premium | £16.60 | £18.10 |
| Office 365 E1 | £7.50 | £8.20 |
| Office 365 E3 | £20.20 | £22.00 |
| Office 365 E5 | £33.40 | £36.40 |
| Microsoft 365 E3 | £31.70 | £34.50 |
Month to Month
| Product Suite | Old Cost | Monthly Cost |
|---|---|---|
| Exchange Online Plan 1 | £3.60 | £3.96 |
| Exchange Online Plan 2 | £7.20 | £7.85 |
| Microsoft 365 Business Basic | £5.40 | £5.88 |
| Microsoft 365 Business Standard | £11.28 | £12.36 |
| Microsoft 365 Business Premium | £19.92 | £21.72 |
| Office 365 E1 | £9.00 | £9.84 |
| Office 365 E3 | £24.24 | £26.40 |
| Office 365 E5 | £40.08 | £43.68 |
| Microsoft 365 E3 | £38.04 | £41.40 |
UK Pricing confirmed, these prices have now been confirmed for the UK. Changes will come into effect on 1st April 2023.
For further information from Microsoft on subscription 2023 changes: Read More
If you’re unsure of how the changes will affect you, complete the form below and we’ll be in contact to asnwer your questions.
- Yearly commitment licence's are 'Pool' based allowing you to reassign if a member leaves. The Pool cannot decrease during the commitment only increase on a prorated term.
- If your current NCE agreement started before the 1st April 2023, then your subscriptions costs are locked in until your term expires.
For further information from Microsoft on subscription 2023 changes: Read More
If you’re unsure of how the changes will affect you, complete the form below and we’ll be in contact to asnwer your questions.
Contact Us:
Frequently asked Questions about Microsoft's New Commerce Experience
1Why is this change being made?
Microsoft are changing their billing platform to something called “New commerce Experience” NCE this is intended to simplify the way all Microsoft software and services are purchased. Part of this new program is the requirement to enforce a difference in cost between companies that make an annual commitment and thos that do not, this has been the case with Microsoft 365 for many years but we have never charged the month to month premium, we are now being charged that premium and therefore have to pass it on.
2What if we have a new starter?
If you have a new team member joining the business and you need to increase the licensed quantity of M365 products that you are already using then you can add additional license quantities under the NCE yearly agreement and they will be charged pro-rata for the remaining term of the annual agreement.
3What if we have a replacement for an existing team member?
If a team member leaves and is to be replaced by a new hire then the license held by the original team member can be simply transferred to the new team member, without any change to the subscription.
4What if we wish to reduce our headcount?
If you wish to reduce the size of your team, then unfortunately you will not be able to reduce your license count until the anniversary when a new agreement will be created.
5Can we upgrade our licences?
If you wish to upgrade an existing license to a higher version, (i.e. Business Basic to Business Standard) then you will be allowed to do so within the term.
6Can we add new M365 product?
If you wish to add a new product that you have not taken before, this will create a new subscription with a new annual commitment.
7Can I avoid these limitations?
Yes you can maintain your existing flexibility of being able to make changes on a monthly basis but unfortunately this will result in the additional 20% premium on all Microsoft 365 licenses.