Microsoft has announced significant changes to Microsoft 365 subscriptions, including global price increases and a shift to a new licensing model called New Commerce Experience (NCE). These updates went into effect on March 1, 2022, marking the first major pricing adjustment in over a decade.
At VCS, we’re committed to helping you understand and navigate these changes to minimize financial impact and ensure your business remains productive and cost-efficient.
What’s Changing in Microsoft 365 Subscriptions?
Microsoft has made substantial additions to its cloud offerings, and the new pricing reflects that value. These prominent changes to Microsoft 365 subscriptions demonstrate these updates’ depth:
Price Increases (Effective March 1, 2022)
| Plan | Previous Price | New Price |
|---|---|---|
| Office 365 E1 | $8 | $10 |
| Office 365 E3 | $20 | $23 |
| Microsoft 365 Business Basic | $5 | $6 |
| Microsoft 365 Business Premium | $20 | $22 |
| Microsoft 365 E3 | $32 | $36 |
Audio Conferencing Enhancements
Unlimited dial-in conferencing is now included at no additional cost for the following plans:
- Microsoft 365 E3
- Office 365 E1/E3
- Microsoft 365 F1/F3
- Office 365 F3
- Microsoft 365 Business Basic, Standard, and Premium
Subscription Options Under the New Commerce Experience (NCE)
Microsoft’s NCE introduces new commitment terms and pricing structures. As part of the changes to Microsoft 365 subscriptions, here’s a breakdown of your options:
Monthly Subscription
- Flexibility to decrease license quantities monthly
- 20% premium over annual pricing
- Example: Office 365 E3 now $23 + 20% = $27.60/month
12-Month Subscription (Recommended)
- Fixed pricing for one year
- License quantities can only be reduced at renewal
- Payment options: monthly or annual
- Example: Office 365 E3 = $23/month
36-Month Subscription (Not Recommended by KME)
- Fixed pricing for three years
- License quantities can only be reduced annually
- Payment options: upfront, annual, or monthly
- Example: Office 365 E3 = $23/month
Looking Ahead: What’s Next for Microsoft 365 Subscriptions?
While these changes are substantial, Microsoft’s licensing model continues to evolve. We anticipate more changes to Microsoft 365 subscriptions as we monitor updates and will share new information as it becomes available.
At VCS, our team has spent considerable time reviewing the NCE model to help clients make informed decisions. We understand that every organization has unique needs, and we’re here to guide you through the transition.
Need Help Navigating These Changes?
If you have questions or need assistance with your Microsoft 365 subscriptions, please contact our team:
We’re here to help you make the best choices for your business.
Charles Lobert, has been in the Detroit Metro Area’s IT industry for over two decades & with VCS since ’04. Throughout the years, Lobert has held nearly every position at VCS & is responsible for several major organizational shifts within VCS.