GI Insider alert
Microsoft Licensing Changes What You Need To Know
Beginning March 1, 2022, Microsoft will change its licensing model. That change will impact every business user, so it’s important that you understand your options going forward.
General Informatics is here to help you navigate these waters. Tune in below as Nick and Stephen discuss what’s changing and how you can act now to save money!
Video Recap: What's Going On with Microsoft?
Our customers received this information in an e-blast, but for those of you who are not customers of ours (yet), here’s what you need to know.
Change 1 - Fee Increases
Microsoft is increasing its license pricing beginning March 1, 2022. That’s obviously a bummer. But given the rising price of goods and services in the economy, it’s unlikely that Microsoft’s announcement comes as a great surprise.
The good news: Microsoft is allowing the opportunity for everyone to lock their current pricing in for a 12- or 36-month term. Locking in the current price now for 36 months will protect you against the upcoming price increase, as well as any increases introduced in 2023 and 2024. That’s why we recommend this option. And since Microsoft requires upfront payment for the entire term, General Informatics will offer financing options so you can continue paying monthly.
If you decide that a long-term agreement isn’t for you, there’s some additional information you need to know. Microsoft has stated that not only will month-to-month licensees receive the impending 15-20% price increase, but they will also receive an additional 20% premium increase. This means you could end up paying 40% more than what your current rates are!
The next change to know about is that Microsoft is shifting its licensing management model. Under the current model, licensees can add and reduce licenses at any time. Going forward, Microsoft will allow partners like General Informatics to add licenses at any time, but reducing licenses is permitted at renewal only.
Change 2 - License Management Changes
Microsoft is also shifting its licensing management model. Currently, subscribers can add or reduce licenses at any time. After March 1, 2022, Microsoft will allow partners like General Informatics to add licenses at any time, but will be permitted to reduce your quantity of licenses only at renewal. This licensing model is commonplace among SaaS companies. That said, if your workforce fluctuates seasonally, and you’re concerned about not being able to decrease licenses as needed, Microsoft has afforded you an alternative option. Going forward, you will be able to maintain a combination of both annual and month-to-month licenses. This will allow you the flexibility needed to account for fluctuations in your workforce throughout the year.
Will my prices increase?
Can I lock in my current pricing before the increase?
If I lock in my pricing now, will I be able to add or decrease the number of licenses as my workforce number fluctuate?
On the flip side, once you specify a number of licenses for the upfront pricing, you cannot decrease that number.
Can I still go month-to-month?
If I upgrade some or all of my licenses, will a new 12- or 36-month term begin?
If I want to lock in for 36 months, do I have to pay everything up front?
Want to hear more? Listen to the Tech Gumbo Podcast
Tech Gumbo: Fake Ransomware, Microsoft’s New Commerce Experience
Stephen Cavell joins Haggai Davis, Customer Success Manager at General Informatics and host of Tech Gumbo Podcast, to discuss Microsoft’ New Commerce Experience.
Questions or concerns? Connect with your Customer Success Manager at General Informatics if you need help weighing your options.
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