7th March 2023


What Does the Microsoft Price Increase Mean for You?

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By now you’ll have heard that Microsoft is increasing its New Commerce Experience (NCE) subscription prices. A 9% increase will take effect on 1st April to reflect the change in the exchange rate between the pound and the dollar. This comes at a time when everything seems more expensive, from your electricity and gas to your tomatoes at the supermarket. Unfortunately, we don’t have any other choice but to pay the extra.

But what we can do is let you know your options, so you can move forward in the most cost-effective way for your business.

What are my options with Microsoft?

Just over a year ago, you’ll have signed up for either a monthly or annual NCE subscription. Your options will depend on which plan you chose…

Monthly customers: you could change over to an annual subscription, as this comes with an automatic 20% discount. If you do this before 1st April, you’ll lock in the current lower price. When you come to renew in a year’s time, you’ll have to pay the higher price, but it’ll save you a bit of cash right now.

Just be aware that although you can add licenses to the annual subscription, you can't remove them. So the price you set out with will be the minimum price you pay until you renew in a year’s time.

Annual customers: given that you can’t renew early, you don’t have the option of locking in the current price for another year. So you will have to pay the higher price when your subscription comes up for renewal. However, depending on how long you have left, you might have a few more months under your belt before you have to cough up.

One thing to note – Microsoft has said it will review this price increase every six months to reflect the exchange rate at the time. So it could go up again, or it could go down. It’s hard to predict.

Are there any other ways I can save?

We always encourage customers to take regular stock of their IT inventory. So this is a good time to do just that. Ask yourself: Am I using Microsoft 365 to its full capacity?

Many users don’t realise just how many applications are included in Microsoft 365 and end up paying for more software packages when they don’t actually need them. For example:

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So take a look through your IT and see if you could cancel any of your subscriptions and use a Microsoft 365 application instead. It might just save you a few pounds.

Are the price increases just with Microsoft?

Simply and sadly, no. Other vendors, and even ourselves, are not immune to cost challenges at the moment. As a result, we’re seeing similar increases in the region of 7%-10% industry-wide. So we may be in touch to talk you through some other price increases, depending upon the specific support packages and combination of services you’ve got with us.

But rest assured, we’ll always spend time making sure we’ve delivering the exact products and services you and your business need – no more, no less.

If you have any questions about reducing your IT stack or the Microsoft price increase, just get in touch with our friendly team today on 0333 456 4431 or email us at info@somerbysit.co.uk.