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Important Update: Changes to Microsoft 365 subscriptions

Posted by Dan Felix on October 19th 2021

In August, Microsoft announced that they were changing the way that every business purchases Microsoft 365. Since then, we have been waiting for more information on their plans.

This month, Microsoft released more information on their New Commerce Experience. For Microsoft 365 subscriptions, they’re introducing one year and three-year fix term options giving a more streamlined way to purchase. Though having the ability to pay for licences monthly, each period will have different price points. Businesses will still be able to buy licences monthly; however, these will be classed as “Retail” with no discounts being applied.

Also changing will be the ability to purchase licences under an SPLA and/or MSPA agreement; however, Enterprise Agreements will remain. Open Value licences will also cease as announced in December 2020.

The primary aim of this change is to align all of Microsoft’s existing subscriptions into one model. The other objective is also to streamline all their current subscription models, providing clarity to businesses.

With the changes coming into place, Microsoft has also announced that the cost of licences will be increasing. We don’t have the complete picture of what these increases will be, but we’ll let you know as soon as we do.

Over the coming months, Microsoft will be looking for partners and customers to move to their new model, with the ability to purchase on current models coming to an end by March 2022.

However, a business will still buy licences on a month-by-month subscription, but these will be classed retail and not covered in any discount.

If you need further information, please get in touch with BCN Group today! We’ve also produced a helpful FAQ guide that answers many questions businesses have regarding these changes.