New Commerce Experience Renewal

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 21^st 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 21^st 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 1^st 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 1^st 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 1^st 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.