Changes to Microsoft Licensing. Time for a review?

On August 19 Microsoft announced an update to our commercial pricing for Microsoft 365, the first substantive update since Office 365 was released in June 2011. This price update builds on the product innovation Microsoft has delivered over the past ten years to meet the changing needs of customers. Since initial release, Microsoft has added 24 new apps – including Microsoft Teams – and over 1400 features like data loss prevention (DLP) for documents and emails, Office messaging encryption, and attack surface reduction capabilities. This change will go into effect on March 1, 2022, providing about six months of advance notification.

Products affected

Product Current user/month $USD After March 1, 2021
Office 365 E1 $8 $10
Office 365 E3 $20 £23
Office 365 E5 $35 $38
Microsoft 365 E3 $32 $36


*There is no change to pricing for Microsoft 365 E5.

Also, on August 19 Microsoft announced the extension of audio-conferencing capabilities across the paid enterprise, business, frontline, and government suites, enabling users to dial-in and join a Teams meeting from virtually any device. This change will be effective in March 2022.

On August 31 Microsoft announced Microsoft Defender for Endpoint Plan 1. Available later this calendar year as a standalone offering and included as part of Microsoft 365 E3, this new offering brings together leading prevention capabilities including next generation protection, attack surface reduction, and access to the Microsoft 365 Defender console for threat visibility, configuration management, and baselines – all at a lower price.

On March 2022 The 12 month subscription via NCE (New Commerce Experience) will provide customers with the opportunity to consume online services on an annual commitment basis. Unlike the legacy CSP model customers who consume on a 12 month subscription, you will have the option to be billed on a monthly or annual basis.

Pricing will be locked in for the duration of the term which provides customers with additional cost savings and security against any price increases due in that time. You can increase seats during the 12 month subscription term but are not able to reduce seat count.

We have an opportunity over the next few months to lock in a solution that works for you before the price update goes into effect. Let’s set up some time in the next few weeks to talk about your overall needs and requirements.

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