Extend your Microsoft Cloud licenses before April 1st to delay the April 1st 11-16% Price Increase

Tip: Extend your NCE licenses before April 1st to continue to leverage current prices

2023-01-18 update to the below; it is our understanding that when you extend your current NCE licenses before April 1st 2023, current price levels apply troughout the period of the extension, which is usually 12 months!

Second Price increase in little over a year

On January 5th Microsoft has announced its second price increase in little over a year (link) for the Microsoft Cloud. Under the pretext of a global price alignment Microsoft Cloud Services for the Eurozone will surge with 11%.

This increase follows after last year’s increase (link), where Microsoft moved from the Cloud Service Provider (CSP) model to the New Commerce Experience (NCE). At which time “updating pricing to reflect increased value since launching Office 365 a decade ago” was the rationale for a double digit increase percentage.

For customers who switched from CSP to NCE with a yearly commitment, a 5% discount was offered to the supplying Microsoft Partner with the intent to pass this on to the end-customer. This means that for these situations the effective price increase as per April 1st is a whopping 16%.

The good news is that in the January 15, 2023 announcement (link) Microsoft has indicated that pricing will be assessed in a twice a year cadence where fluctuations relative to the American Dollar will be taken into account.

For more information about our offering of Microsoft Cloud Licenses (including training, a cloud cost control solution, a marketplace to self-service your license, super sharp pricing, etc.), please visit this page; link