Microsoft has recently announced significant price updates for its Microsoft 365 products, which take effect from September 1st. This change brings billing into line with the US dollar, ensuring that users worldwide are paying the same amount for their Microsoft 365 subscriptions. The last time there was a price adjustment was in 2019.
Who Does It Affect?
The upcoming price adjustments by Microsoft will have widespread effects – primarily for businesses using Microsoft 365, but also for individuals. Whether you’re a small business owner or a large corporation, these price updates are important to understand.
Price Adjustments Around the World: Australia’s 9% Increase
While Microsoft 365 price adjustments are happening on a global scale, specific countries may experience different changes. In Australia, Microsoft 365 users will see a 9% increase in subscription fees starting from 1 September 2023. In Switzerland, users will also see a 9% increase in subscription fees. In future, depending on how the Australian dollar is performing against the US dollar, we could also see a reduction in cost.
Which Licenses Are Impacted?
Microsoft offers a variety of licenses for its 365 suite, tailored to meet the needs of different users and organisations. Most businesses typically use licenses like Microsoft 365 Business Basic, Business Standard, and Business Premium. These licenses encompass a range of features, including email hosting, online meetings, and document collaboration, making them vital tools for modern workplaces.
Are There Exemptions?
If you’re concerned about the price hike, there’s some good news. Microsoft is providing exemptions for those who have existing NCE (New Commerce Experience) annual agreements, which is most people. Those in this category will continue to be billed their current subscription price until their renewal date. In future, when there is a price change, you will only be billed at the new price once your licenses are due for renewal.
Anyone on a monthly agreement will be billed at the new price when they come into effect. Due to the way we bill, we offer our clients annual agreements but with monthly payment schedules, so if you are unsure, just reach out.
Future Adjustments: February 1st and September 1st
It’s essential to note that Microsoft plans to make pricing adjustments every February 1st and September 1st. This regularity allows users to anticipate changes and budget accordingly. When you sign up for a Microsoft 365 contract on an annual basis, the price you pay at the time of renewal is what you’ll continue to pay until the next adjustment cycle.
Microsoft has committed to providing 30 days’ notice for future price adjustments. Likewise, we will work on getting these price adjustments up as soon as they are released by Microsoft.
Do You Need Help?
If you’re unsure about how these price updates will affect your organization or need assistance in managing your Microsoft 365 subscriptions, don’t hesitate to reach out for support. Our team is here to help you navigate these changes and ensure you continue to get the most out of your Microsoft 365 investment.