This year, Microsoft is increasing prices 15% for most Microsoft 365 products. LTS will be increasing prices to reflect these changes over the next few months.
Here are more details about how this price increase may effect our clients:
Microsoft Online Annual Services Commitment
Under Microsoft’s new Cloud Agreement, customers must commit, in advance, to purchase a specific number of Online Services (Microsoft 365, Dynamics 365 and Azure products) for use for an annual term. License counts cannot be reduced during the term, but licenses can be added at prorated price. You may pay upfront, or monthly, for continued use of the Online Service.
Example:
- On March 1, 2022 you contract to purchase 20 licenses for a year’s commitment.
- Two employees leave in May.
- You are still responsible for the monthly payments of those licenses until your annual contract renews at the end of March 2023.
- You may reassign those licenses to new hired employees.
- On March 1, 2023 your license count can be adjusted.
Alternatively, customers may choose to continue as is for a 20% premium. This options allows the flexibility to subtract licenses and not have to pay through a year commitment.
Example:
- You can choose to pay month to month for Business Premium license at a price of $27.60 per month, per license ($23 on annual commitment as mentioned above).
- You have the flexibility to add and reduce licenses monthly.
- No need to commit to an annual agreement.
If you have any questions, please drop Jim and note at jim@lanetechnologysolutions.com.
Remember, this is not an LTS policy, but is how Microsoft is choosing to transact business going forward.