Managed IT Services

New Commerce Experience – Licensing Model and Pricing

  1. Home Home
  3. Managed IT Services
  5. New Commerce Experience – Licensing Model and Pricing
1 February 2022

Over the course of the next few months, Microsoft will be making changes to both its licensing model, as well as pricing changes. 
As we strive to keep our customers updated with the most important information, we feel now is the perfect time to break this down to you. At Redpalm, we’ve split the below into two sections (price increases and licence changes).

Price Increases

From 1st March 2022, Microsoft is raising the pricing of 6 of their most popular products in the market. This will affect you at different times, based on if you are currently utilising these services or not.
This is Microsoft’s first price increase in over 5 years. As stated above, this is a change by Microsoft, and therefore is something out of our control. The main 6 products affected by the change, as well as the current estimated price increase is below. Pricing in pound sterling will be made available at the start of February 2022:

  • Office 365 Business Basic – 20%
  • Office 365 Business Premium – 10%
  • Office 365 E1 – 25%
  • Office 365 E3 – 15%
  • Office 365 E5 – 8.5%
  • Microsoft 365 E3 – 12.5%

We will be contacting you in due course to inform you of when these price increases will affect you. If you’re already purchasing one of these products from us, then your pricing will stay the same until an anniversary date, which is based on when you first ordered the service.
If you’re looking at purchasing one of the above products in the near future, please speak to our sales team / your account manager so we can work together to find the most suitable path for you.

Licence Changes

Microsoft has recently announced a change in how customers purchase and manage their licences through their Cloud Solution Provider (CSP) Program, which is the platform you are currently buying your license through.
On 10th January 2022, Microsoft is launching New Commerce Experience (NCE). This change will impact the way you purchase Microsoft 365 licences, with Microsoft’s intention to provide cost savings for long term commitments, whilst introducing additional features over the course of the year.
With the launch of NCE, Microsoft will be introducing additional ways of purchasing your office 365 services (alongside that of monthly rolling). These options will be 12-month and 36-month commitments (36 month coming later in the year), allowing you to save on any future cost increase by committing to the coming years.
With these changes, however, comes some differences on how you can change your licence quantities, which is explained below:

Monthly Option

You will be able to make changes to your licences in a 72-hour window once per month. This option is the most flexible on the New Commerce Platform, but will come at a price premium if you do not wish to commit for a long term.
Seat additions can take place at any time, so you can add to your agreement like normal, however reductions can only happen in that 72-hour window monthly. Not all services are available on this model, so it’s worth checking with us before deciding on any agreement path.

Annual Option

You will be able to make changes to your licences in a 72-hour window once a year. This option is less flexible than the above, but is not subject to the price premium and therefore is cheaper than its monthly counterpart. Licence additions are also the same as monthly.
Payment for this option can either be on a monthly basis (with a year commitment) or upfront.

Multi-Year Option (Launching Mid 2022)

You will be able to make changes to your licences in a 72-hour window at the end of your 36-month term. This option is the least flexible, but is not subject to the price premium and therefore is cheaper than its monthly counterpart. Licence additions are also the same as monthly.
Payment for this option can either be on a monthly, annually or upfront basis.

What Do We Advise Next?

As always, the team at Redpalm are here to support you with all Microsoft changes, and pride ourselves on the service we offer. We have been researching the best options for our customers since the New Commerce Experience launch and we believe it’s in your best interest to look at moving to the NCE where available, and leveraging the discounts when possible.
To go with this, the NCE is the best time for us to audit your estate and make sure you’re not over paying for the licences you’re currently using. We can combine this with a discussion around when it is best to move over to the new offering, and also make sure that the move is as seamless as possible.
To find out more, give us a call on 0333 006 3366 today!

Search For Posts

Subscribe To Our Newsletter

Subscribe to receive industry news and insights.

    Trending Articles

    Software Licensing – Why Is It Important?
    cyber criminal tactics, two individuals hacking into a computer system

    7 Common Cyber Criminal Tactics to Watch Out For
    phishing email scam, paper email icon on a hook above a laptop

    A Deep Dive Into HR Phishing Email Scams

    Latest From The Blogs

    holiday scammers, man using laptop
    Cyber Security

    7 Ways to Protect Your Business From Holiday Scammers

    The Christmas holiday season in the UK is a pivotal time for businesses across industries, marked by a significant increase in sales and customer interactions. However, alongside these opportunities, there’s also a rise in holiday scams and cyber attacks as fraudulent individuals exploit the Christmas holiday rush. 

    Read More
    cyber risk report, IT technicians discussing report on tablet
    General

    Redpalm and Hexiosec – Importance of Cyber Risk Reports

    As cyber security threats in the UK evolve in sophistication and prevalence, cyber security risk has become a growing concern

    Read More
    prevent a data breach, computer devices with code and access denied displayed on screen
    Cyber Security

    5 Effective Strategies to Prevent a Data Breach

    Data breaches occur when any sensitive information is leaked or exposed to the public without authorisation. They can lead to the loss of your organisation’s intellectual property, customer data, or other confidential information.

    Read More
    cybersecurity metrics, woman next to data projection
    Cyber Security

    7 Cyber Security Metrics Every Business Should Track

    The ever-evolving nature of cyber threats means tracking cyber security metrics is essential for evaluating your company’s cyber security posture and maintaining cyber defences.

    Read More
    digital privacy, person typing in their login credentials
    General

    Understanding the Future of Digital Privacy

    Technological advancements have reshaped how personal information is collected, shared, and used, and privacy has emerged as one of the biggest challenges in this digital age.

    Read More
    cyber security certification UK, two males working on a computer in server room
    Cyber Security

    5 Tips to Secure Your Cyber Essentials Certification in the UK

    According to the 2024 Cyber Security Breaches Survey conducted by the UK government, 50% of UK businesses experienced a cyber attack or security breach in 2023.  With a growing frequency of cyber attacks, many businesses have begun to prioritise cyber security and cyber security certification in the UK.

    Read More
    cyber security strategy, woman and man working on computers
    Cyber Security

    How to Build a Strong Cyber Security Strategy

    According to cyber security stats, cyber attacks have become more prevalent in recent years, not only increasing in number of incidents but also in their level of sophistication. This increase in ransomware, phishing, and other types of cyber attacks has only emphasised the need and importance of a cyber security strategy for businesses across industries.  An effective cyber security strategy helps you protect your digital assets, such as your systems, networks, and data, from unauthorised access and damage. A well-constructed strategy involves procedures, policies and frameworks to help reduce risks, respond to incidents and safeguard sensitive data.  Your cyber security strategy isn’t meant to be perfect; it’s intended to act as a strongly educated guess as to what you need to do to keep your business safe. As your organisation and the world around you evolve, your strategy needs to evolve as well.

    Read More
    cyber criminal tactics, two individuals hacking into a computer system
    Cyber Security

    7 Common Cyber Criminal Tactics to Watch Out For

    Cyber crimes are attempts by cyber criminals, hackers or other malicious individuals to gain unauthorised access to a computer network or system. These attacks often target a range of victims, from individual users to organisations and even governments, which begs the question, can cyber crime be curbed?

    Read More
    improve online security, a person using a laptop with visual of security overlaid on top of image
    Cyber Security

    6 Simple Ways to Boost Your Company’s Online Security

    Online security, aka cyber security, involves protecting your business’s sensitive information and critical systems from unauthorised access and theft. With data networks being almost universal, fraudsters are becoming more and more innovative with their scams. Every day, countless cyber criminals scan unsecured or poorly secured networks, looking for an opportune moment to attack.

    Read More
    phishing email scam, paper email icon on a hook above a laptop
    Cyber Security

    A Deep Dive Into HR Phishing Email Scams

    Have you ever received an email from your HR team that appeared too good to be true? Or perhaps there was something about it that sounded a little off. Beware—you may have narrowly avoided falling into the clutches of an HR phishing email scam.

    Read More