Back in 2022, Microsoft changed their pricing on their commercial Office 365 licenses, basically increasing them 20% across the board as part of their “New Commerce Experience” (NCE) purchasing program. Public sector (government and non-profit) Office 365 licenses were spared increases at the time, but we knew it was going to happen eventually. In September of 2023, we received word that those changes were going to happen to those licenses, we just weren’t sure when (we had guessed mid-2024). In May of 2024, Microsoft had said they were shooting for September to start forcing those conversions.
Now it looks like it’s official: As of August 1, 2024, no new subscriptions can be made under the legacy subscription model and all new purchases must be done under NCE, which has the 20% price increases for monthly licenses. As of September 1, 2024, all licenses will need to be converted to NCE licenses (we will handle that process instead of using Microsoft’s automated process so we can watch over it) with the higher pricing reflected on your September invoices.
Here’s what you can expect from a pricing increase standpoint for the most common licenses our clients use (all prices are monthly, per seat, in USD). Licenses not listed below will be receiving a 20% increase as well:
- Non-Profit Licenses
- Microsoft Office 365 E1: From $2.50 to $3.00
- Microsoft Office 365 E3: From $5.80 to $6.96
- Microsoft 365 Business Premium: From $5.50 to $6.60
- Microsoft 365 E3: From $9.00 to $10.80
- Microsoft 365 E5: From $22.80 to $27.36
- Government/GCC Licenses:
- Microsoft 365 GCC G5: From $57.00 to $68.40.
These price changes do not affect any offers that are currently available as donation grants to nonprofits and are allocated already, including:
- 10 licenses of Microsoft 365 Business Premium
- Up to 300 licenses of Microsoft 365 Business Basic
We firmly believe that Microsoft’s 365 offerings are still the best solutions for your organization. We do not markup monthly Office 365 licenses and will continue to only charge you what Microsoft would have charged you had you gotten the licenses directly from them. If you have any questions at all, don’t hesitate to reach out to your Weston account manager.