Microsoft 365 Change to Licensing Options and Pricing

Microsoft 365 Change to Licensing Options and Pricing

What is happening?

Microsoft have announced a change to the way you can obtain Microsoft 365 Licenses and these changes are coming into effect soon. There is some flexibility into the changes if you are a current client of ours but Microsoft really would like you to switch over to the new plans by March 1st 2022. The main changes are a price rise and a push to commit to a 1 or 3 year term.

We are still waiting on the final details to come through, however the short truth is that prices are increasing and the current flexibility of being able to go up and down on the license counts is being removed, or at the least discouraged. The anticipated price rises are in the region of 8% – 25% on most products with a further 20% premium on top if you do not switch to a longer commitment term.

What are my Options?

You have three main options or combinations of to go for and the choice you make will depend on your preferences and also how much your staffing levels change over the course of a year.

  1. Continue as you are currently with full flexibility to go up & down in license counts but with the 20% premium per license.
  2. Commit to a minimum license count for either 12 or 36 months to take advantage of the savings being offered.
  3. A mixture of Option 1 & 2 in that you choose a smaller amount to commit to (80% for example) and then take the remainder as you flexible licenses to go up & down through the commit period.


If you know that your staffing levels will rise you can always take more licenses than you need right now, in addition to this you are also able to increase your license count during the minimum commit period. However, it is not possible to reduce the license count during this period so if you increase by 5 licenses after 6 months of a 12 month commitment period, you are then committed to the extra licenses for the remainder of that period.

What should I do?

If you are a current client of ours then we will offer you our advice on what we feel would be the best option to take for your business. We can base this on your previous licenses changes over the last few years. With this advice and any future business plans you may have, we can put forward a solution that works best for your business.

If you are a new or potential client, we will help you to make the right choice. Please pick up the phone and give us a call, we will be happy to help!