Microsoft will implement two price increases in the near future, in addition to a change in their licensing model for cloud solutions. These changes are global and will therefore affect everyone who uses services provided by Microsoft.
In general, EMP Secure will recommend our customers to bind all seat-based licenses, so that you may delay the announced price increase for 12 months.
Details of the changes can be found below
Price increase for Service Provider License Agreement (SPLA) licenses.
SPLA is a licensing program which provides service providers (such as EMP Secure) the opportunity to license Microsoft products for their customers. This applies to all licenses being utilized as a part of EMP Secure’s services from their own infrastructure/cloud solution.
Microsoft announces a price increase of 5-10% on SPLA-licenses from January 1st, 2022. These changes apply globally, including academic uses, and apply to the following licenses:
Windows Rights Mgmt Services CAL
Core Infrastructure Svr Ste DC Core
Core Infra Svr Ste Std Core
Office Multi Language Pack
Visual Studio Professional
Visual Studio Test Professional
Price increase for Cloud Solution Provider (CSP) licenses
CSP is a licensing program which provides partners (such as EMP Secure) the opportunity to deliver Microsoft Azure and Microsoft Office 365 services to their customers. This includes all licenses being used as a part of EMP Secure’s services, delivered from Microsoft’s infrastructure/cloud solution.
Microsoft announces a price increase for Microsoft 365 and Office 365 from March 1st, 2022. These changes apply to the following products:
Microsoft 365 Business Basic
Microsoft 365 Business Premium
Changes in licensing models for cloud solutions from Microsoft
All seat-based products and services, which until today have been included in the CSP program, will now be included in Microsoft’s new program called New Commerce Experience (NCE).
In practice, this means multiple multiple considerable changes in price and flexibility for both EMP Secure as a partner, as well as for end customers of these products.
Essentially, the program consists of 3 alternatives for licensing, where each individual customer has to decide on an alternative, or a combination of alternatives, that works best for them.
In this case, EMP Secure will be able to provide you with good advice to ensure that together we arrive at the optimal solution for your company.
- The customer pays 20% more for access to the flexibility which monthly subscriptions represent.
- There will be no price protection. The prices may change monthly, according to changes announced from Microsoft.
- The cancellation period will be 72 hours, or upon renewal of the period.
- Pay-per-day will not exist – customers pay until the end of maturity. Even if the subscription is cancelled in the middle of the month, the customer will still be invoiced.
- Upgrades are available for some products – downgrading is not possible for any license.
- Example: M365 to M365 E5 is allowed. While M365 E to M365 is not allowed.
- If you choose not to take action, your current subscription will bechanged to Option A from March 1st, 2022.
- You will have predictability in price, which is paid for the whole contract period (one-year binding period).
- Annual subscriptions may be paid monthly or in advance for the whole period.
- The price for an annual subscription will be 20% cheaper, compared to Option A.
- The cancellation period is 72 hours, or upon renewal by the end of the annual period.
- Changes, such as downgrading, reductions, ect., must coincide with the end of the license period.
- Upgrades are available for some products, while downgrades are not available for any license.
- Example: M365 E3 to M365 E5 is allowed. While M365 E5 to M365 M3 is not.
- One cannot move their subscription to another IT supplier during the binding period.
- This option will be made available after January 1st, 2022.
- You will have predictability in price, which is paid for the whole contract period (three-year binding).
- Annual subscriptions may be paid monthly or in advance for the whole period.
- The price for an annual subscription will be 20% cheaper, compared to Option A.
- The cancellation period is 72 hours, or upon renewal at the end of the annual period.
- Changes, such as downgrading, reductions, etc., must coincide with the end of the licensing period.
- Upgrades are available for some products, while downgrades are not available for any license.
- Example: M365 E3 to M365 to E5 is allowed. While M365 E5 to M365 E3 is not.
- One cannot move their subscription to another IT supplier during the binding period.
- This option will be made available after March 1st, 2022.
One divides the total amount of licenses between each alternative; example: One has a total of 100 licenses on M365 E5, and chooses to divide them like this:
- 80 licenses on 12-month subscription (Option B)
- 20 licenses on monthly subscription (Option A)
Schedule for the transition of CSP to NCE
January 1st, 2022
From this date forward, customers may choose to change their subscription from CSP to NCE. If one chooses to change to NCE Option B (12-month subscription), one will essentially delay Microsoft’s announced price increase which is set to take place from March 1st, 2022, until the binding on NCE has expired.
March 1st, 2022
From this date, one of two things will happen:
Your existing agreements for CSP will be subject to the announced price increase, applicable from March 1st, 2022. Any new licenses needed after this date will be bought by EMP Secure and must be purchased through the NCE program.
You then relate to agreements entered into as described above.
After March 1st, 2022
Option C will be made available
