Changes are coming to Microsoft 365 licencing which we want to make you aware of.
At the moment your Microsoft licencing is paid for on a monthly basis at a fix price with the flexibility of increasing and de-creasing the licence count on a monthly basis with a 12-month commitment.
In October 2021 Microsoft announced they would be looking to make changes to the licence subscriptions and over the past 6 months have made multiples changes to the way in which this will be offered, however we now have full confirmation of exactly what these changes will entail after speaking with licencing experts.
The New Commerce Experience (NCE) licencing subscriptions will become mandatory from 1st October 2022 and will be as follows;
- Monthly (Similar to current subscription)
- Incurs a 20% increase on the current price so for a Dynamics 365 Sales Professional licence it would be approximately £58.80 per month as appose to the current £49.
- Can increase and decrease licence count on a monthly basis.
- Cancel full subscription with 1 months’ notice.
- Prices can fluctuate monthly as not locked into an annual term.
- This is the major change as makes the existing increase/decrease whenever model more expensive.
Annual
- Prices fixed for 12 months.
- Increase licence count at any time but not de-crease. (only de-crease at the end of the 12 month term).
- This is the most steady-as-it-goes option as it keeps prices at their current level; but less flexible to reduce numbers over 12 months.
Triennial
- Prices fixed for 3 years.
- Increase licence count at any time but not de-crease. (only de-crease at the end of the 3 year term).
- Microsoft are still looking at this option to make it more competitive over the annual option – however the ability to freeze prices for 3 years may be quite useful at the moment.
| Current Price (Monthly) | New Price NCE No Fixed Term Monthly Billing Frequency | New Price NCE Annual Term Monthly Billing Frequency | New Price NCE Annual Term Annual Billing Frequency | New Price NCE Triennial Term Monthly Billing Frequency | New Price NCE Triennial Term Annual Billing Frequency | |
| Dynamics 365 Sales Professional | £49 | £58.80 | £588 (£49 per month) | £588 | £1764 (£49 per month) | £1764 |
| Dynamics 365 Sales Enterprise | £71.60 | £85.92 | £859.20 (£71.60 per month) | £859.20 | £2577.60 (£71.60 per month) | £2577.60 |
| Dynamics 365 Sales Premium | £101.80 | £122.16 | £1221.60 (£101.80 per month) | £1221.60 | N/A | N/A |
| Dynamics 365 Customer Service Professional | £37.70 | £45.24 | £452.40 (£37.70 per month) | £452.40 | £1357.20 (£37.70 per month) | £1357.20 |
| Dynamics 365 Marketing Attach | £565.60 | £678.72 | £6787.20 (£565.60 per month) | £6787.20 | N/A | N/A |
| Dynamics 365 Team Member | £6 | £7.20 | £72 (£6 per month) | £72 | £216 (£6 per month) | £216 |
| SharePoint Online Plan 1 | £3.80 | £4.56 | £45.60 (£4.56 per month) | £45.60 | N/A | N/A |
Please see the table above for the full breakdown of current costs vs new NCE costs.
We are recommending that our clients choose the Annual 12 Month Fixed option as this is also recommended by Microsoft as it offer you the best prices (but the lower flexibility to reduce headcount over the year will need to be considered).
These changes are dependent on your current renewal date which your licence provider will be able to make you aware of and also means you do no need to take any action until this date, however we would recommend that you look at the options and consider which is suitable for your business so we can look to assist you as quickly as possible.
If the 12 month fixed annual option is suitable we can move you onto this sooner than the date specified to avoid any potential service issues as if the renewal date is missed your services will be suspended therefore making your system inaccessible.
If you wish to discuss any of the above with us we would be happy to arrange a call (contact@crmcs.co.uk) or for more information visit https://docs.microsoft.com/en-us/partner-center/new-commerce-license-based
