Overlay | VanRoey.be

Microsoft changes licence structure, Ines gives tips to save in the process

Microsoft is changing its licensing structure quite dramatically and some prices are going up. But, like your energy supplier, it may pay to revisit your formulas. Fellow Ines Van Hoof, Licensing Specialist at VanRoey.be, explains & explains!

Microsoft New Commerce Experience

In fact, Microsoft changed its licensing structure back in February 2022. This under the name 'Microsoft New Commerce Experience (NCE)' and as a successor to the Cloud Solution Provider (CSP) programme. This new licensing model covers Office 365, Microsoft 365, Dynamics 365, Windows 365, as well as Power Platform licences.

As this new transaction model nears its first anniversary, for many organisations it is THE time to critically scrutinise their Microsoft licences. 

What changes?

For the first time in years, Microsoft is going to hike prices on some key basic subscriptions (+- 11%).

In addition, the way licences are traded in particular has changed:

Subscription
1 month
Subscription
12 months
Subscription
36 months
Billing Per month Per month or year Per month, year or 3 years
Prices +20% Standard Standard
Commitment Flexible Fixed Fixed
Cancel after 1 week? 1 month
charged
12 months
charged
36 months
charged
Price protection 1 month 1 year 3 years
Interim upgrades
Interim downgrades
Which licences? All subscriptions All subscriptions
except Windows 365
Mainly
Dynamics 365

Teams Rooms Standard becomes Teams Rooms Basic

Meeting room licences have also recently changed. Where previously we spoke of Microsoft Teams Rooms Standard and Teams Rooms Premium, we now get Microsoft Teams Rooms Basic and Microsoft Teams Rooms Pro.

In the overview below, we explain the difference:

Microsoft Teams Rooms Basic
Microsoft Teams Rooms Pro
Price per month Free €33.70 per room
Max. number of meeting rooms 25 Unlimited
More than 1 camera
More than 1 screen / projector
Additional views:
Front Row, Large galleries of Panoramic
Teams Phone System integration
Remote Configuration & Microsoft Intune

Time for action!

As you can see in the equation above, 'Interim downgrades' are no longer allowed in any formula. Since most organisations opt for the 12-month licence model, now is the time - even before the expiry date - to downgrade and/or downgrade your licences where necessary.

Because from 7 days after the renewal date your licences are again fixed for 1 year! From then on, you can only:

  • Upgrading your subscription
  • Increase licences
  • Changing billing frequency
  • Apply co-term date

Tips to save on your Microsoft licences

Below, Ines shares some quick-wins to look at as an organisation:

Tip 1: Office 365 E3 > Microsoft 365 Business Premium

An example of a 'downgrade' is the switch from Office 365 E3 to Microsoft 365 Business Premium:

  • What do you already have? Office, Exchange Online, Teams, SharePoint Online and OneDrive
  • What do you submit? Oa. mailbox from 100GB to 50GB + OneDrive 1TB instead of unlimited
  • What do you get extra? Security features such as: Microsoft Defender for Office 365, Azure Active Directory, Intune, Defender for Business, ...

Per user, this can save you around €70 on an annual basis! This is provided you don't need more than 300 licences.

Tip 2: Microsoft 365 E3 > Microsoft 365 Business Premium

An example of a 'downgrade' is the switch from Office 365 E3 to Microsoft 365 Business Premium:

  • What do you already have? Office, Exchange Online, Teams, SharePoint Online and OneDrive
  • What do you submit? Windows Business instead of Enterprise, no Windows Server CAL rights, less storage mailbox and OneDrive + some Microsoft security features less compared to Microsoft 365 E3.

Per user, this can save you around €200 on an annual basis! This provided you do not need more than 300 licences and no essential already configured security features are missing.

Tip 3: Microsoft 365 Business Standard > Microsoft 365 Business Premium

An example of a recommended 'upgrade' is the switch from Microsoft 365 Business Standard to Business Premium.

  • What do you already have? Office (desktop), Exchange Online, Teams, SharePoint Online and OneDrive
  • What do you get extra? Security features such as: Microsoft Defender for Office 365, Azure Active Directory, Intune, Defender for Business, ...

This for just a few euros extra per month.

More tips & tricks?

Would you like to explore extensively using sample scenarios What savings or upgrades your organisation can achieve? Then be sure to watch Ines' video. In 15 minutes, she explains all the options available:

 

"Since most organisations opt for the 12-month licensing model, now is the time - even before the expiry date - to downgrade and/or downgrade your licences where necessary!"

Written by:

Tom Hufkens
Marketing Manager at VanRoey.be

A familiar face at VanRoey.be for almost 15 years. Literally and figuratively: because of his role as Marketing Manager, he is regularly at the centre of our communication. He writes about his experiences with new marketing methods in his blog Tech4Marketing.be.

Our Solutions

ESG