Ever since Microsoft 365, which used to be known as Office 365 launched, the products they offer has expanded to now include a wide variety of applications such as Excel, Word, PowerPoint and more recently Teams which has been a life line to businesses during the Covid pandemic. These have all been effective in making businesses move to hybrid remote working with ease, without compromising on communication between people.

But how does this effect your business? Here’s what we know so far: –

Price increases

Microsoft have announced a price increase ranging from 10-20% on their most popular licences, these increases will take effect from the 1st March 2022. The prices for the UK have not yet been released but the prices for the US market have been confirmed are as follows:

  • Microsoft 365 Business Premium – up from £15.10 to £16.60
  • Office 365 E1 – up from £6.00 to £7.50
  • Office 365 E3 – up from £17.60 to £20.20
  • Office 365 E5 – up from £30.80 to £33.40
  • Microsoft 365 E3 – up from £28.10 to £31.70

We’re pleased to let you know if your business benefits from pre-negotiated discounts, you will still receive the same percentage rate of discount. Currently, charity and educational licenses are unaffected by the price increase.

License changes

Microsoft are planning to make two key changes to its licencing model. Their flexible model means customers have the ability to add or remove licences on a daily basis, without any penalties or charges. Moving forward, from the 1st March 2022, any customers wishing to keep this flexibility will have to pay an additional 20% (in addition to the new price increase). This in total could mean your business sees a increase of up to 40%. Its’ important you check your licences and needs to make sure you are taking the correct steps to minimise the impact on our budgets.

To avoid this additional price increase, you’ll need to commit to an annual license fee which will apply to all Microsoft 365 license types. Please note, during each 12 month period, license quantities can be increased daily but not reduced.

Here to help

We must stress these price increases are being implemented by Microsoft on a global scale, so unfortunately, we’re unable to influence these changes. However, as a result of securing your licenses with Online Systems, you will continue to benefit from significant cost savings and highly competitive rates. 

Our team are on hand and happy to answer any questions you may have about these changes and the impact on your business. Please call us on 01228 599898, email sales@online-systems.co.uk or contact your account manager.

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