Microsoft 365
Microsoft 365... what’s occurring in 2024
Microsoft 365 New Commer Experience structure, here's what you need to know.
Microsoft 365 Price Increase 2024
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.
For many businesses you took advantage of the Annual Commit pricing as it locked your monthly costs at a fixed price for the next 12 months. For those that had locked in at the 2022 pricing, you were also able to lock in that price for an additional 12 months taking you into 2023. Sadly we're not hearing of any further locked in prices for 2024. Those that were on the "old cost" will have an increase coming on your anniversary date to the "new cost".
The good news is that whilst many countries are seeing a price increase for 2024 (from 2023), the UK isn't. The subscription fees are staying the same. Below we have detailed the changes to the most popular subscriptions. If yours isn't listed, please contact your account manager for furher details.
For many businesses you took advantage of the Annual Commit pricing as it locked your monthly costs at a fixed price for the next 12 months. For those that had locked in at the 2022 pricing, you were also able to lock in that price for an additional 12 months taking you into 2023. Sadly we're not hearing of any further locked in prices for 2024. Those that were on the "old cost" will have an increase coming on your anniversary date to the "new cost".
The good news is that whilst many countries are seeing a price increase for 2024 (from 2023), the UK isn't. The subscription fees are staying the same. Below we have detailed the changes to the most popular subscriptions. If yours isn't listed, please contact your account manager for furher details.
Annual Commitment Terms
Due to some circumstances last year, we can only offer an Annual Commitment if the tenant owner pays in full upfront. We found ourselves in a couple of difficult situations last year where we could have been left with (over £10,000) bills from a few businesses that went into admin. This is not something we can take a risk on.
We also had a few conversations with clients who had more licenses than required; despite our clear messaging regarding Microsoft’s terms for the Annual Agreement, they found it unfair.
The Monthly agreement gives businesses more flexibility on the licencing quantity, which fits better with many businesses.
Month to Month
| Product Suite | Old Monthly | Current Monthly | New Monthly |
|---|---|---|---|
| Exchange Online Plan 1 | £3.60 | £3.96 | £3.96 |
| Exchange Online Plan 2 | £7.20 | £7.85 | £7.85 |
| Microsoft 365 Business Basic | £5.40 | £5.88 | £5.88 |
| Microsoft 365 Business Standard | £11.28 | £12.36 | £12.36 |
| Microsoft 365 Business Premium | £19.92 | £21.72 | £21.72 |
| Office 365 E1 | £9.00 | £9.84 | £9.84 |
| Office 365 E3 | £24.24 | £26.40 | £26.40 |
| Office 365 E5 | £40.08 | £43.68 | £43.68 |
| Microsoft 365 E3 | £38.04 | £39.72 | £39.72 |
Annual Commitment (paid upfront)
When ordering Annual Commitment licences:
- Orders must be placed 14 days in advance
- Licenses will only be enabled once we have received cleared funds
- Additional licences will co-terminate with the original order
| Product Suite | Old Commit | Current Commit | New Commit |
|---|---|---|---|
| Exchange Online Plan 1 | £36.00 | £39.60 | £39.60 |
| Exchange Online Plan 2 | £72.00 | £79.20 | £79.20 |
| Microsoft 365 Business Basic | £54.00 | £58.80 | £58.80 |
| Microsoft 365 Business Standard | £112.80 | £123.60 | £123.60 |
| Microsoft 365 Business Premium | £199.20 | £217.20 | £217.20 |
| Office 365 E1 | £90.00 | £98.40 | £98.40 |
| Office 365 E3 | £242.20 | £264.00 | £264.00 |
| Office 365 E5 | £400.80 | £436.80 | £436.80 |
| Microsoft 365 E3 | £380.40 | £397.20 | £397.20 |
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 those 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.
If you have any further questions, or would like to learn more about Microsot 365, please complete the form below and we'll be in contact.
Contact Us:
