New Commerce Experience Renewal | Microbyte

New Commerce Experience Renewal

Microsoft aligns pricing with USD

Important changes to Microsoft licensing

  • Renewing annual terms for Microsoft 365 licenses on New Commerce Experience (NCE).
  • Microsoft globally aligning prices with the US Dollar (USD) which will mean a price increase (roughly 9%) for GBP licenses.

Microsoft New Commerce Experience – renewing your terms

  • We contacted you last year about Microsoft changing their billing model which affected prices and terms.
  • Most customers opted to tie into annual licenses to secure preferential pricing and to avoid Microsoft’s price rises.
    • This came at a cost of not being able to “reduce” licenses before the annual term renewed.
  • Your company’s annual term may be up for renewal shortly and the below information will provide guidance on what you should do.

What needs to happen now?

  • The renewal date for most customers will be roughly 21st February 2023.
    • After this date the license, new or renewed subscriptions will reflect the latest pricing from Microsoft
      • This may mean a slight increase depending on your license type.
    • If you started a new subscription after 21st February 2022, the new annual term will be one year from the day you started the new subscription unless your end dates have been purposefully aligned.
  • If you wish to review your licenses, you will be able to do so before this date to ensure your license numbers are correct at the point of renewal.
    • You should receive the list of Office 365 Licenses each month with your invoice.
    • Please get in touch with your suggested changes, or if you require more information.
  • If you do NOT contact us, the following will happen automatically:
    • Microbyte will renew your licenses on an annual term.
    • Any “spare licenses” from leavers, will be removed and your new license count will be correct at the point of renewal.
    • The NCE pricing will be applied.

Microsoft aligning GBP prices with USD

  • Microsoft are aligning their prices across the globe to the USD whereas previously, some countries had their own local pricing, such as GBP.
  • This alignment will begin on April 1st 2023 and the USD pricing will be reviewed every 6 months.
  • Microsoft have suggested the alignment will have roughly a 9% increase on all GBP licenses.

What does this mean for you?

  • Any annual terms secured before April 1st 2023 will not be subject to price changes, therefore the previous NCE renewal will protect most terms / pricing until February 2024.
  • Any new terms taken out after April 1st 2023 or any monthly terms will be affected by the new pricing structure.

For more information on these changes please see our ‘Microsoft’s New Pricing for 365″ blog here.