MICROSOFT CHANGES TO M365 (O365) PRICING GO INTO EFFECT ON MARCH 1st, 2022| January 7, 2022
In late 2021, Microsoft announced changes to their per month subscription prices along with some new SKU’s for annual pricing. These new changes will go into effect on March 1st, 2022.
Currently, most of our customers pay on a month-to-month basis. This is a monthly term subscription that allows cancellations or seat-count reductions each month. This is model is now called the Premium Price Monthly Term Subscription (MTS). There will be an average of a 20% increase to stay on this model.
A new model is being introduced called Annual Term Subscription (ATS). The ATS model allows for pricing benefits but now has an enforced cancellation policy.
The following chart summarizes what we know of the pricing and models as of this writing.
Nonprofit and Education: Non- Profit and Education products will not be affected by the price increases in March.
WHICH MODEL IS RIGHT FOR MY ORGANIZATION?
The answer to this is simple. The MTS model is based upon consumption on a month-to-month basis. If you have a lot of turnover (seasonal employees for instance), it may make sense to stick with the MTS model. If you have a low employee turnover the ATS will save you some money. Also, note that as you add employees and purchase new licenses under the ATS model that license will auto-renew on that date. The ATS model over time will be a varied cost month to month (as you renew users on different dates). The ATS model is not prorated. The following comparison may help you decide which plan is better for your organization.
**NOTE THAT THIS IS SUBJECT TO CHANGE PRIOR TO 03/01/2022 PER MICROSOFT