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Microsoft Licensing Changes

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  • Posted by: Carissa

Billing, Subscription Management, and Prices Increases are Coming for Microsoft Licenses in the Next Few Months

Keller Schroeder was recently informed of several Microsoft subscription changes coming in the next few months. These changes represent billing, subscription management, planned price increases. As a Microsoft Gold Partner, our hope is to collaborate with our clients soon to determine the best course of action and mitigate as much of the effects of these changes as possible.

We’ve detailed the changes and important dates in the tables below. The most notable changes with the potential for the largest impact include:

  • Month to month terms will come with premium pricing and no price protection
  • A 72-hour cancellation policy vs. 30-day cancellation policy
  • No refunds vs a full refund for suspended seats
  • Continued billing for any suspended seats
  • Option to decrease seats is only available at renewal

It’s also incredibly important to note Microsoft’s 20% price increase for M365 licenses that will be effective on March 1st, 2022. We’d like to discuss how locking in current pricing on an annual agreement before the open licensing program retires on December 31, 2021 could save you significantly over the next few years.

Billing Changes

Legacy program (current Policies)New Commerce (New Policies)
Annual Term with Monthly BillingAnnual term with monthly billing with price protection only during the term
Annual Term with Annual BillingAnnual term with annual billing with price protection only during the term
Multi-year term with annual billing with price protection only during the term
Monthly term offered at premium price +20% with no price protection
30-day cancellation policy72-hour cancellation policy
Full refundNo Refund
No billing for suspended seatsContinued billing for suspended seats until the end of term

Licensing Changes

Legacy program (current Policies)New Commerce (New Policies)
Ability to increase or decrease seats at any timeCan increase seats at any time
Pro-rated billing for increased seatsCan only decrease seats are renewal
Auto-renewed licensingCan schedule to lower seats at renewal
Add-ons were sold as attachments to a base subscription offer and not displayed in the catalogCan upgrade to higher subscription license
Ability to toggle between auto-renewal or manual renewal
Add-ons are listed as separate products and can be purchased separately from base offers

Key Dates

  • Open license program retirement December 31, 2021
  • GA for NCE January 1, 2022 with NCE promo until June 1, 2022
  • No new legacy CSP orders March 1, 2022
  • 20% increase in prices for M365 March 1, 2022

Again, our team is ready to help guide you through what changes and strategies your organization can take to help alleviate or prevent challenges that might come as a part of these changes. Contact your Keller Schroeder Account Manager today, and we’ll schedule some time to discuss.