Office 365

07 October 2021

In August 2021 Microsoft announced that there will be changed to their commercial pricing for their Microsoft 365, this is the first substantial pricing update since they launched Office 365 10 years ago. Therefore, in March 2022 they will be updating their list pricing for the following commercial products; Microsoft 365 Business Basic, Microsoft 365 Business Premium, Office 365 E1, Office 365 E3, Office 365 E5 and Microsoft 364 E3. These increases will apply globally with local market adjustments for certain regions.

Why should I move my license over to Andgate Systems and what are the benefits?

Here at Andgate Systems we can actively manage Microsoft licenses on behalf of our customers to bring down the cost to the 20% monthly premium by purchasing the bulk of these licenses on an annual commitment with a small number of licenses being bought on the monthly commitment model to provide flexibility on changing seat volumes and not incurring the full years annual charge.

For Microsoft licenses that are going up by 10%-20% in price, Andgate Systems can assess customers Microsoft licenses to see if alternative licenses are available which aren’t being hit by a price increase.

What is the NCE and what does it mean for Microsoft customers?

Microsoft is designing a new commerce experience to simplify and streamline how customers buy from Microsoft in order to offer them more options for tailoring these purchases to their business needs and goals. It will also make the selling process, requirements and capabilities much more consistent across the Microsoft product ecosystem.

One thing you should take note is that there will still be levels of flexibility with license management on the NCE. This could look like the following: having customers utilize both annual agreements for those staff members that are more committed and hardly fluctuate and then, for those staff members that do fluctuate, you can then offer the month-to-month commitment option.

Key dates

-March 1st 2022- all subscriptions for modern work and dynamics will be required to be producred through the NCE platform.

Key price changes
-20% increase for month-to-month commitment subscriptions
-Discounted pricing on annual agreements
-Discounted pricing on multi year agreements
-New cancellation policy: Prorated refund for first 72 hours of term following which no refund will be provided by Microsoft
Some of Microsoft SKU’s are increasing in price from 10%-20%

Microsoft are announcing further changes in the coming weeks, we will keep you posted as these changes happen.

If you have any queries, please contact us by phone at 0113 856 2951 or by email at, we will be more than happy to answer any of your queries

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