Service Changes Coming to Microsoft 365 & Office 365
Originally launched in 2019 to provide improvements to the partner and customer experience with Azure subscription services, the New Commerce Experience was expanded to include Microsoft 365, Dynamics, and Power Platform in 2021. The goal is to provide reduced licensing complexity and costs while remaining flexible to support a range of client scenarios, with changes including:
- New subscription terms
- Consistent cancellation policies
- Easier subscription management
- Subscription ownership enforcement
What does this mean for 365 customers?
The NCE offers new subscription terms including 12-month and 36-month plans priced lower than monthly contracts. In addition, it is easier than ever to manage your subscription and add seats, cancellation policies are more consistent, and there are two promotional options to lock in a better rate for your current renewal.
However, the mandatory new plans do include price adjustments detailed below.
Price changes & promotions
The following per-seat prices are based on annual or 36-month billing plans. Should you choose a month-to-month subscription, there is an added 20% premium.
- For Office 365 E1 subscriptions, the cost per seat is increasing from $8 to $10
- For Office 365 E3 subscriptions, the cost per seat is increasing from $20 to $23
- For Office 365 E5 subscriptions, the cost per seat is increasing from $35 to $38
- For Microsoft 365 Business Basic subscriptions, the cost per seat is increasing from $5 to $6
- For Microsoft 365 Business Premium subscriptions, the cost per seat is increasing from $20 to $22
- For Microsoft 365 E3, the cost per seat is increasing from $32 to $36
From now through the end of March, if you sign up for a new annual subscription, you can save 5% off the list price.
From now through the end of June, if you sign up for a new monthly subscription, you can save 16.7% off the list price.
These price changes will apply regardless of when you renew, so it is a great opportunity to take advantage of this limited time discount.
What else is changing?
The products and services you rely on are not changing. You can still pay for a longer contract term on a monthly basis. And you probably won’t even need to sign a new MSA.
However, there are some important differences on the new plans, including:
- Choose monthly or upfront billing for 12 month or longer contract terms
- Cancellation and seat reductions are only permitted within the first 72 hours of the contract term
- Prices are locked in for your contract term, so a 36 month contract offers the greatest value if you do not foresee any seat reductions
Frequently asked questions
When will Lunavi migrate customers to the new plans?
We are notifying customers as renewal dates approach, but you can upgrade at any time.
Can we combine monthly and annual subscriptions for the same service?
Can we still pay monthly for a 12- or 36-month subscription?
Yes, but the contract term is enforced, so customers may not cancel mid-term.
Do agreements need to be re-signed for NCE?
Depending on individual circumstances, new or updated agreements may be required.
Can we cancel or reduce seats mid-term?
Only within 72 hours of the transaction. (Legacy cancellation policy was 30 days.)
Can we continue using our legacy subscription, including adding seats?
Yes, until the end of the subscription term or June 30th, 2023.
For more information and further review, please reference this PDF. If you are a Lunavi customer, we will be in touch to discuss your options for renewal.