Microsoft Licensing Changes

Microsoft Licensing is Changing

Here's What You Need To Know

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Microsoft Licensing Changes What You Need To Know

Beginning March 1, 2022, Microsoft will change its licensing model.  That change will impact every business user, so it’s important that you understand your options going forward. 

General Informatics is here to help you navigate these waters. Tune in below as Nick and Stephen discuss what’s changing and how you can act now to save money!

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Our customers received this information in an e-blast, but for those of you who are not customers of ours (yet), here’s what you need to know.

Change 1 - Fee Increases

Microsoft is increasing its license pricing beginning March 1, 2022.  That’s obviously a bummer.  But given the rising price of goods and services in the economy, it’s unlikely that Microsoft’s announcement comes as a great surprise.  

The good news: Microsoft is allowing the opportunity for everyone to lock their current pricing in for a 12- or 36-month term.  Locking in the current price now for 36 months will protect you against the upcoming price increase, as well as any increases introduced in 2023 and 2024.  That’s why we recommend this option.  And since Microsoft requires upfront payment for the entire term, General Informatics will offer financing options so you can continue paying monthly.

If you decide that a long-term agreement isn’t for you, there’s some additional information you need to know.  Microsoft has stated that not only will month-to-month licensees receive the impending 15-20% price increase, but they will also receive an additional 20% premium increase.  This means you could end up paying 40% more than what your current rates are!

The next change to know about is that Microsoft is shifting its licensing management model.  Under the current model, licensees can add and reduce licenses at any time.  Going forward, Microsoft will allow partners like General Informatics to add licenses at any time, but reducing licenses is permitted at renewal only

Change 2 - License Management Changes

Microsoft is also shifting its licensing management model. Currently, subscribers can add or reduce licenses at any time. After March 1, 2022, Microsoft will allow partners like General Informatics to add licenses at any time, but will be permitted to reduce your quantity of licenses only at renewal. This licensing model is commonplace among SaaS companies. That said, if your workforce fluctuates seasonally, and you’re concerned about not being able to decrease licenses as needed, Microsoft has afforded you an alternative option. Going forward, you will be able to maintain a combination of both annual and month-to-month licenses. This will allow you the flexibility needed to account for fluctuations in your workforce throughout the year.

FAQs

Will my prices increase?

Yes, Microsoft is raising the price for everyone by 15 - 20% beginning on March 1, 2022.

Can I lock in my current pricing before the increase?

Yes, you can lock in your current pricing for a term of either 12 or 36 months. This means you won't see the increase for the entire time you're locked in.

If I lock in my pricing now, will I be able to add or decrease the number of licenses as my workforce number fluctuate?

You will always be able to add new licenses, but they won't get the same "locked-in" pricing you agree to up front.

On the flip side, once you specify a number of licenses for the upfront pricing, you cannot decrease that number.

Can I still go month-to-month?

Technically yes, but you will be subject to the 15-20% price increase PLUS an additional 20% premium increase. This means you could end up paying 40% more than you are paying now!

If I upgrade some or all of my licenses, will a new 12- or 36-month term begin?

No, the new licenses will be co-termed to your original subscription renewal date.

If I want to lock in for 36 months, do I have to pay everything up front?

General Informatics offers financing options so you can make payments on a monthly basis instead of all at once.

Want to hear more? Listen to the Tech Gumbo Podcast

Tech Gumbo: Fake Ransomware, Microsoft’s New Commerce Experience

Stephen Cavell joins Haggai Davis, Customer Success Manager at General Informatics and host of Tech Gumbo Podcast, to discuss Microsoft’ New Commerce Experience.

You have until March 1, 2022 to lock in your current pricing and save money! 

Questions or concerns? Connect with your Customer Success Manager at General Informatics if you need help weighing your options.

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