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Microsoft Price Increase July 2022

Price increase to Microsoft 365 licenses

Currently, if you purchase your Microsoft 365 through us (or another service provider) then you’re likely to be on what Microsoft call a CSP contract. At the end of June 2022, Microsoft are ceasing this contract and introducing a new contract that they call NCE.

The products remain the same functionality and there is no difference from a usability perspective – all this is behind the scenes stuff.

The new month-to-month commitment NCE contract is accompanied by a 20% price increase. Obviously, this will be unwelcome – especially as it follows a previous price increase on some of these products earlier this year.

The only way to escape this increase to switch to an annual contract which would involve an up-front payment for the year. In this scenario, the price increase would be avoided but it is not possible to decrease licence quantities during the year on this plan. Therefore, many clients will no doubt prefer to retain the flexibility and predectability of a monthly payment – even with the added premium.

Any clients on a month-to-month billing pattern will be transitioned across to the equivalent NCE contract at the end of June 2022 unless they let us know that they prefer a different plan.

By Eddie Palmer

Eddie Palmer is the founder of Nottingham-based Your Computer Department.