Microsoft will make several adjustments to billing models and unfortunately also price increases in 2022. One thing remains the same: we will stay cheaper or at least on the same price level as if you purchase directly from Microsoft. The following changes:
Microsoft 365 & CSP
- Microsoft is introducing the same billing model for Microsoft 365 as for Azure (New Commerce Experience – NCE). It therefore brings advantages through annual and multi-year commitment, but unfortunately also disadvantages if you want to pay monthly and stay flexible (+ 20% to be able to vary the M365 seats / licenses monthly).
- Microsoft is making slight price adjustments for six M365 products (approx. + 10%). The products are: Microsoft 365 Business Basic (from 5 to 6 US-Dollar), Microsoft 365 Business Premium (from 20 to 22 US-Dollar), Office 365 E1 (from 8 to 10 US-Dollar), Office 365 E3 (from 20 to 23 US-Dollar), Office 365 E5 (from 35 to 38 US-Dollar), Microsoft 365 E3 (from 32 to 36 US-Dollar).
The new prices and models apply as of 1.3.22.
SPLA & data center
SPLA is the name for “Service Provider License Agreement” and relates to customers who are operated in our datacenter. There are the following adjustments:
- Microsoft is increasing the prices of Windows Server (+ 10%), RDS SAL (+ 10%), Office Pro Plus & Standard (+ 10%), Core Server Datacenter (+ 7%), Core Server Standard (+ 5%), Project Pro/Server/Standard (+10 %), Visio Pro/Standard/Studio (+10 %).
- We will also adjust the prices accordingly. Except for our Desktop as a Service customers (RDS, Citrix). With these models, ProCloud will bear the cost of the price increase.
Azure Datacenter CH
Despite massive expansion over the last 2 years, Microsoft is bringing slight price reductions for Azure Switzerland as of October 1st, 2021. We have reviewed some services and for most customers there will be no noticeable difference. The largest reductions – with around 10% reduction – exist in the area of backup, premium files and SAP-on-Azure. This is the case with the primary data center CH North, with CH West everything remains the same.
Need for action
It’s not uncommon for Microsoft to make price adjustments every now and then. It is usually explained by the fact that the technologies are being improved (SPLA) but also that more features, security, functions and applications are available (M365).
The adjustment in the M365 “New Commerce Experience” (NCE) area however are unusual and means for all customers a necessary decision between maintaining the monthly flexibility with a 20% price increase or maintaining the price with a commitment for 1 year.
Unfortunately, Microsoft is currently sparse with further information. For example, it is unclear whether there will also be the option of a 3-year commitment with a higher discount, in which case costs could effectively be saved or not. Should Microsoft create opportunities here, we will inform about them in this article.
Recommendation and further steps
According to the current state of knowledge, we recommend our customers to reserve the licenses for a fixed period of 1 year, which are highly unlikely to change and to leave a smaller part flexible.
Example: Assuming there are 100 employees with M365 Business Standard, you could fix 90 licenses with NCE and leave 10 variable. Too many variable licenses should not be necessary, since licenses that have become free can be reassigned.
As Microsoft Partner of the Year and Microsoft Gold Partner, we are always up to date and are available to advise you. Just contact us if you have any questions. We’re here to help.
