Microsoft announce 365 subscription licensing changes as part of their ‘New Commerce Experience’ (NCE).

In March 2022, Microsoft are introducing NCE for Microsoft 365 products, the new NCE changes affect the price and flexibility of licensing and we have summarised the changes below. If you have any questions please speak to your account manager.

What’s changing
Microsoft are changing how you subscribe to M365 licensing along with increasing the price of all subscriptions. The most important points to note about Microsoft’s NCE are:

  • All subscriptions will be set from 72 hours after the point of order for the subscription term (monthly or annual), you will no longer be able to cancel licenses mid-term (you can add and/or upgrade licenses mid-term).
  • Some licenses are increasing in price and the £GBP cost will be determined based on the $USD exchange rate at the beginning of the month that your subscription starts (see pricing table below).
  • Those wishing to continue to subscribe with a monthly commitment will see an additional increase of 20% on top of the standard increase.
  • If you subscribe to an annual commitment you can still pay monthly but will be liable for the total due under the annual commitment. We are expecting Microsoft to bring in 3-year commitment terms but they are not yet confirmed (10th January 2022).

How this will affect you

All of our customers utilise our flexible monthly payment option which gives you complete control and visibility of your spend. In order to maintain this, if we haven’t agreed otherwise prior to 1st March 2022, we will automatically enrol all Microsoft 365 subscriptions onto the monthly commitment and recharge you on your usual monthly invoice.

What we are doing

We are in consistent dialogue with our partners including Microsoft and we will contact everyone of our customers prior to the changes to discuss your options and to agree how you would like to proceed.


Pricing Table

Microsoft are increasing their pricing as per the table to the right. Increases are based on existing $USD per license cost and will be converted to £GBP monthly (based on your subscription start date).

If the individual product you are using isn’t listed there is no general price increase, you will however still be subject to the 20% monthly commitment surcharge.

License Existing Price ($) NCE Price ($)
Microsoft 365 Business Basic 5 6
Microsoft 365 Business Premium 20 22
Office 365 E1 8 10
Office 365 E3 20 23
Office 365 E5 35 38
Microsoft 365 E3 32 36