Changes To Microsoft 365 Licensing In 2022

Read below to learn more about the recent changes that you should to be aware of:

  1. The purchase price for certain Microsoft 365 licensing is increasing.
  2. The purchase agreement options for Microsoft 365 are also changing, deterring monthly subscriptions.

Price Increases

After 10 years Microsoft has decided to increase their prices. Below are the following licenses being affected:

Subscriptions: % Increase:

Microsoft 365 Business Basic20%
Microsoft 365 Business Premium10%
Office 365 E125%
Office 365 E315%
Office 365 E59%
Microsoft 365 E313%

The Annual Agreement Contract

The new Microsoft 365 annual agreement will require the costumer to agree to a minimum number of licenses for the term of the contract, which is one year and paid upfront. The minimum number is the number of purchases licenses on the date the agreement begins.

During the year, you are unable to reduce the number of licenses below the minimum number. You can at any time add additional to the agreement that are of the same type and these will co-term to the renewal date.

If you are wanting to add a new license type, this will form a new agreement for 12 months from that start date.

The Monthly Agreement Contract

You can continue to purchase Microsoft 365 subscriptions on a month to month basis, with this flexibility comes a higher price though. An additional 20% will be added on subscription products purchased on a month to month basis.

Some Microsoft 365 products are available on an Annual Agreement only and not for monthly agreement. These are:

  1. Exchange Online Plan 1
  2. Exchange Online Plan 2
  3. Exchange Online Kiosk

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