Over the past 12 months, Microsoft has been in the process of changing its monthly subscription terms and pricing, called New Commerce Experience (NCE), which will take effect on the 1st of July 2022.
This will affect all Microsoft and Office 365 pricing and commitment terms for all cloud service providers worldwide. This is a considerable change in how Microsoft and Office 365 subscriptions are purchased, and action will be required to limit the impact to business the price increase may have on the cutover date.
Currently, Microsoft allows you to add and remove a licence as required, allowing for pro-rata billing. For example, if a business adds a new licence on the 2nd of the month and removes it on the 15th you are only charged for the days you required the licence.
With the change in NCE subscriptions, there will be a split into two commitment terms, month-to-month or yearly. On a month-to-month term you are now required to pay for the licence for the entire month.
Microsoft has removed the ability for pro rata billing and are applying a 20% price increase that will be applied to all month-to-month subscriptions.
With the new yearly terms, you will now be locked into a yearly commitment for all licences purchased and added under this term. Both options are still paid on a monthly basis, or if preferred a yearly payment option.
Townsville Chamber’s Corporate Partner External IT, who are a Microsoft Silver Partner, are available to answer any questions you might have. There is also more information on their website www.externalit.com.au/#blog.