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Microsoft Price Increases

The entire tech industry is still adapting to Microsoft’s new licensing model called the New Commerce Experience (NCE). This is the biggest change in their Cloud platform since it was introduced back in 2015. Microsoft are looking to move all pricing and licensing processes onto this new model. Our aim has been to get as much information issued to you as early as possible, and we are still waiting for more information around such a large change.

Why are Microsoft doing this?

Microsoft hasn’t changed their commercial pricing on Office 365 since its launch. What started off as predominantly Word, Excel, PowerPoint, and Outlook, has grown to include over 20 more apps. The platform has greatly improved over the years and the prices now reflect this increase in value. Therefore, you receive a better service in return.

What does this mean for you?

Microsoft’s New Customer Experience (NCE) is a ‘per seat’ model for Microsoft 365, Windows 365, Dynamics 365, and Power Platform subscriptions.

The main points are:

  • You have three options: monthly subscriptions, annual subscriptions with monthly payments or annual subscriptions paid upfront.
  • Monthly subscriptions: These give you the freedom and flexibility to cancel or amend seat counts both up & down on a monthly basis. This option has a 20% premium for such privileges; however, it is possible to combine them with annual subscriptions to help minimise the premium.
  • Annual subscriptions: this can be paid monthly or upfront. It is cheaper in the long run but cannot be cancelled mid-term.
  • Cancelation: Microsoft will no longer allow you to decrease the number of seats you have purchased mid-term on an annual subscription.
  • All cancelations must be made with 72 hours of initial subscription purchase, thereafter changes can only be made on the annual renewal date.
  • The NCE will take effect from the 1st of March 2022

The Contract

This new NCE model is designed to reduce complexity and offer simpler licensing, plus reward long-term commitments. This means within the next month (March 2022) you will notice changes to your Microsoft purchasing agreements. Regarding the Microsoft Customer Agreement, the move will be coming away from fragmented programme-specific offers and therefore notice that your services are governed by one contract. At Cambridge Support we believe this is a good move. It is better for the IT support provider and you as the client, why complicate matters?


Regarding subscriptions, you will notice there are financial incentives for annual subscriptions. However, it must be noted that while you can upscale your license by adding more seats, you cannot downscale and reduce your seats. If you are the type of company that needs the flexibility, then the monthly subscription will be best. However, that comes at a 20% premium from the annual cost.

How can we help you?

Cambridge Support provide all of Microsoft’s products and are happy to help with any questions you may have. We are up-to-date with all of the NCE changes and can provide a tailored service. Please get in touch as soon as possible. You can call us on – 01223 921 000 or email at