As of 1st March 2022, Microsoft will be making changes to its Microsoft 365 product subscriptions. The changes relate to pricing and the minimum term.
The changes announced by Microsoft apply to Microsoft 365 services provided by MTG and direct from Microsoft.
Pricing
Microsoft announced a price increase of approximately 15-20% across a range of products. The products and the proposed price changes are set out below.
| License | Current Price | New Price | Increase |
| Office 365 E1 | £6.00 | £7.28 | 21% |
| Office 365 E3 | £17.60 | £20.25 | 15% |
| Microsoft 365 Business Basic | £3.80 | £4.56 | 20% |
| Microsoft 365 Business Premium | £15.10 | £16.60 | 10% |
Minimum Term
Microsoft has changed the way in which services are provided and the following will now apply:
- All subscriptions are now subject to a minimum 12-month term.
- If the customer prefers a month-by-month arrangement, the service will be subject to a 20% premium.
- Licenses can be mixed and matched (i.e. some licenses can be on a monthly term, while others on an annual term).
- Unless cancelled, services will renew on a 12-month basis from the anniversary date.
How will this affect your organisation?
- Whether Annual or Monthly – you will still be billed monthly by Manx Technology Group
- The number of licenses active as of March 1st 2022 will be the number of licenses active for the next 12 months. Licenses cannot be reduced while within the minimum term.
- Once a new order is submitted, a customer has 72-hours to cancel before the 12-month term takes effect.
- If you need to add licenses during this period, they can be co-termed with the existing anniversary date.
- If you would prefer your subscriptions to be on a monthly plan, this can be arranged, but it will be subject to the Microsoft monthly premium.
Next steps
- MTG will increase the subscription charges as of March 1st 2022 and your invoices will update automatically.
- MTG can also provide a breakdown of current license usage to assist with your decision making (please e-mail sales@mtg.im for more information)
Questions
If you have any questions – please e-mail sales@mtg.im and we will gladly assist
More information
The price increase is the first major price change in the UK since Office 365 was launched in 2011.
Microsoft has emphasised the price changes are due to the increased value, security, and the investment they have made in the Microsoft 365 platform, particularly with the introduction of new services such as Microsoft Teams etc.
Original Microsoft announcement
https://www.microsoft.com/en-us/microsoft-365/blog/2021/08/19/new-pricing-for-microsoft-365/
