Service Update: Microsoft 365 Fees Increase on January 1, 2023
Service Update: Microsoft 365 Fees Increase on January 1, 2023.
As previously announced by Microsoft, Microsoft 365 Fees Increase on January 1, 2023. In addition to increased fees for specific licenses, Microsoft is changing the structure of annual agreements and adding a 20% surcharge for month-to-month licensing.
Why Now?
Microsoft has been working towards these changes for more than a year. They company pushed back the deadline several times as the change coincided with major changes to Microsoft’s partner program. Microsoft has notified customers and partners that all subscriptions will be on the new pricing as of January 1, 2023.
For our customers, Cumulus Global has delayed the impact and fee increases for as long as possible. We are communicating with our customers individually to address the final deadline.
New Terms and Conditions
With the pricing changes, Microsoft is also changing some of the terms and conditions for the services. Historically, Microsoft has not enforced commitments on annual agreements; customer were free to change user counts and even cancel without penalty. Going forward, Microsoft will enforce annual subscriptions and terms as firm commitments. Customers may change or cancel within three (3) days of starting an annual term. Customer commit to the number of licenses for the full year. Microsoft is offering a three year commitment option as well, which secures pricing for that period.
If you need or want the flexibility of increasing and decreasing user counts at any time, you will need to opt for month-to-month licenses. Monthly licensing lacks the commitment but includes a 20% surcharge over fees for an annual commitment.
License Pricing Changes
The following are the fee changes for annual licensing. All fees are listed as per user per month.
- Microsoft 365 Business Basic
- Annual: From $5 to $6
- Monthly: $7.20
- Microsoft 365 Business Premium
- Annual: From $20 to $22
- Monthly: $26.40
- Office 365 E1
- Annual: From $8 to $10
- Monthly: $12
- Office 365 E3
- Annual: From $20 to $23
- Monthly: $27.6
- Office 365 E5
- Annual: From $35 to $38
- Monthly: $45.60
- Microsoft 365 E3
- Annual: From $32 to $36
- Monthly: $43.20
All other Microsoft 365 and Office 365 license fees remain this same with an annual commitment; monthly fees will reflect the 20% surcharge.
Next Steps
Our team is contacting each our customers impacted by the pricing to discuss their options and plan their services going forward.
As we are here to assist any small business with their cloud services, feel free to contact us by email, via our website, or by scheduling time directly with one of our Cloud Advisors to discuss your options and path forward.
