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Price and contract changes for Microsoft licences
Microsoft revamped the Microsoft 365 license agreement model globally in the beginning of year 2022. There are now two different subscription periods for the licenses: a continuous 1-month subscription period and a continuous 12-month subscription period.
1.7.2022 Microsoft increased the prices of 365 licenses so that prices for all 1-month subscription periods increased by approximately 20%. The price increase was global and affected e.g. Microsoft 365, Office 365, Dynamics 365, Windows 365, and Power Platform licenses. The change on July 1st did not apply to a continuous 12-month subscription period and the price remained the same for those licences.
If you would like to update your existing licenses, you can contact Elisa Sales - we will help you choose the licenses that best meet your business needs!
Why were prices for Microsoft licenses increased?
In the beginning of year 2022, Microsoft made changes to its licensing and partner licensing model. Currently, the licenses follow the new NCE license model, with a continuous 1-month subscription period and a continuous 12-month subscription period. The change in Microsoft's license took place around the world.
The price increase on July 1, 2022, also occured globally and affected all Microsoft partners and resellers.
What licenses were affected by the July price increase?
As of July 1, 2022, prices for Microsoft's 365 licenses for 1-month subscription periods were increased by approximately 20%.
Price changes on July 1, 2022, affected all Microsoft 365 licenses, such as
- Microsoft 365
- Office 365
- Windows 365
- Dynamics 365
- Power Platform
Where can I see which licence I currently have?
- You can see your license details on your Elisa invoice or as an administrator in the Microsoft 365 admin center (https://admin.microsoft.com) under Admin - Billing - Your Products.
How can I update my licenses?
Please contact our sales and we can help you with Microsoft licenses:
What is the difference between a 1-month and a 12-month subscription period?
- If you have a 1-month subscription period, the price may change during the year. Any price change will be announced at least 1 month in advance.
- If you have a 12-month subscription period, your price will stay the same for 12 months. When licenses are renewed for the next term, prices will be reviewed against Microsoft's current license list.
- In both subscription periods, billing is monthly.
License changes during the subscription period
- During the 1-month subscription period, you can change the type and number of licenses each month.
- During the 12-month subscription period, you can acquire new licenses or upgrade your license to a better version in the middle of the year. The licenses covered by the agreement are for a limited period, so they cannot be revoked within 12 months.
Duration of the contract and notice period
- A 1-month subscription period is a contract valid for the time being with a 1-month notice period.
- The 12-month subscription period is a continuous 12-month subscription that is renewed for 12 months at a time. You can cancel the contract before the renewal date (after 12 months of ordering). If you do not cancel the contract 1 month before the renewal date, the order will be automatically renewed for the following year.
How do I interpret Microsoft's new invoices?
Microsoft 365 licenses are billed monthly from the date of agreement, on a daily basis. The latest invoices now appear to have been invoiced twice for February due to a lack of accurate billing information for the billing period. However, the charges on the invoices are correct.
March invoice: In March, your company received an invoice for the Microsoft 365 license, which shows the billing period from February 1 to February 28, 2022. With this invoice, the license has been invoiced on 1.2. from the date the license is changed to a new billing model. For example, the change to the license was made on February 24, 2022, the billable period is February 1 to February 23, 2022.
April invoice: The invoice for April also shows the period from 1 February to 28 February 2022. However, this no longer means the billing period itself, but the time period from which we collected the billing information. For example, the change to the license was made on February 24, 2022, the billable period is February 24 to March 23, 2022.
We'll be adding the missing billing period information to your invoices in the early summer.
Have questions or want to upgrade your Microsoft license?
Leave a message or call and our salesman will help you move forward: