Microsoft have announced significant price rises of up to 25% for some of their Microsoft 365 and Office 365 subscriptions from March 2022. In addition, they are introducing global changes to their subscription terms and cancellation policy. At Your Office Anywhere we will do our utmost to help our Microsoft 365 customers (existing and new) with these changes and advise on the most costs effective and flexible options that meet the needs of your business. Please get in touch as soon as possible so we can advise the most appropriate course of action.
Please read the details below about the price changes and more importantly how the subscription policy changes known as New Commerce Experience will affect you going forward.
While these changes are unavoidable there may be much you can do to mitigate the costs and potentially make some savings and the Sales team at Your Office Anywhere are available to help and guide you in making sure you have the right plans and subscriptions for your business.
Microsoft 365 price rises from March 2022
Before looking closely at the cancellation policy changes in the New Commerce Experience we’ll look at the upcoming price rises for Office 365/Microsoft 365 subscriptions.
Important to say that at this stage (December 2021) we do not yet have the new UK prices. These are expected to be announced in February 2022. What we do have is the plans affected in the US and the US price changes which will give you an idea of what to expect. It’s possible that other plans not listed below may be affected in the UK.
US Price increases from 01st March 2022
Microsoft 365 Business Basic
Microsoft 365 Business Premium
Microsoft 365 E3
Office 365 E1
Office 365 E3
Office 365 E5
We will publish the new UK prices on this page as soon as we have them in February.
Subscriptions taken out prior to 01st March 2022 will have price protection for the remainder of the subscription period. For example, customers whose subscriptions were taken out (or renewed) in August 2021 won’t see the price increase until August 2022.
Microsoft cancellation policy changes – New Commerce Experience
Microsoft plan to bring Microsoft 365 and Office 365 subscriptions in line with their other licence models. They are introducing two new subscription terms, a monthly subscription for customers who need flexibility, and a three-year term* for customers who want surety of pricing over a longer period. This is alongside the existing 12-month subscription term.
However, Microsoft are going to be strictly enforcing the subscription terms and it will no longer be possible to reduce subscription quantities or cancel subscriptions before the end of the term, after the first 72 hours.
Customers who need flexibility can opt for the new Monthly term, however this will have a 20% higher price compared with the annual term.
It will be possible to have a mix of monthly, annual, and multi-year subscriptions for example where customers have a mix of permanent and temporary staff.
Microsoft also require their resellers to cover the subscription costs of customers who are unwilling or unable to commit to the full term they signed up to, for example if they cease trading. For this reason, for 12-month or 3-year subscriptions we reluctantly will require payment for the entire term in advance.
Get in touch now
At Your Office Anywhere we will be contacting all our existing Microsoft 365 customers to make sure you are aware of the price changes and cancellation policies. We want to ensure you have the best and most cost effective balance of subscriptions so please get in touch with us to discuss your options.
If you are not yet a Your Office Anywhere customer for Microsoft 365 but need some advice on this please do get in touch.
Summary of changes in New Commerce Experience
- Orders for new user subscriptions can only be cancelled within the first 72 hours of an ordering being placed. After 72 hours customers are committed to the full term of the subscription whether 1 month, 1 year, or 3 years.
- New monthly subscriptions are being introduced for customers requiring flexibility – these will have a 20% price premium above the 12-month plan.
- New 3-year subscriptions* for customers wanting to lock in pricing for 3 years.
- 1-year and 3-year subscriptions will require upfront payment for the full term if purchasing through Your Office Anywhere.
Length of Term
Monthly in advance
Full year in advance
Full 3 years in advance
Ability to add new users
Ability to upgrade plans
Ability to remove licences
End of annual term
End of three-year term
Hybrid Model – customers can buy subscriptions based on their needs for individual user roles. For example, 3-year plans for long term employee roles, annual plans for permanent employees, and monthly plans for seasonal or temporary staff.
*The three-year plan is not yet available in the UK and is due to be released in April 2022.