Cloud Girl's Microsoft Blog

Office 365 Price Increase

Nicole Sheridan - Wednesday, July 08, 2015

Follow Cloud Girl on Twitter   
So yesterday I heard that Office 365 prices across Western Europe are to rise, effective August 1st 2015. Microsofts reason for this is “Cloud services are rapidly evolving and Microsoft is adding significant value to our products”. This doesn’t surprise me one bit, Microsoft have never claimed that Office 365 pricing was going to stay the same, and I have asked regularly. 

One thing does surprise me though, they have not protected the users who are billed monthly, so if you have an existing plan, and are paying monthly via MOSP, you will pay more in August than you did this month! 

As Office 365 we have had so little notice, I will be recommending all my customers renew their O365 end users this month, they don’t have to apply the key yet, but I will be advising then to buy now, use later! 

The Official Announcement

As of August 1 2015, Microsoft will adjust prices for its enterprise cloud products in Western Europe to more closely align with prices within the EU/EFTA region. The changes will not affect existing annuity volume licensing agreements but will apply to the enterprise cloud products under new or renewing contracts. 

Effective August 1st 2015, local prices for enterprise cloud products will increase to more closely align with prices within the EU/EFTA region. Prices in Euro will increase for Office 365 (+10%), CRM-Online (+10%), Enterprise Mobility Suite (+36%), and Azure (+13%). Similar adjustments will be made for enterprise cloud prices in Norwegian krone, Danish krone and Swedish krona.

Affected Products

Office365, Azure, CRM-Online, EMS and other enterprise Online Services are included in this price change. Below are the estimated price changes. Final prices will preview on July 1, 2015 and may differ due to rounding or system limitations

Europe: August 2015 

* Estimates only for full User Subscription License (USL). Prices preview available on July 1, 2015 and may differ due to rounding or system limitations 
†† EMS estimates include a worldwide +15% price increase as customers get rights to ATA functionality 

So Business Premium for example is gone from €115.20 to around €124.50 RRP. 

The Markets affected by this change are: 

Euro-zone, Denmark, Norway, Sweden, Australia, and Canada

How does this impact you? 

Mid-term Enterprise and Enterprise Subscription Agreements with Office365, EMS, CRM-Online, Intune, or other non-Azure services: 
EA/EAS customers have price protection on previously ordered online service and will not experience a price increase during the term of agreement. Orders for new online services will be priced at the then current pricelist price

Mid-term Enterprise Agreement (EA) or Enterprise Subscription Agreement (EAS) or Server and Cloud Enrollment (SCE) with Azure:
 Customers or partners who purchased Azure within an EA, EAS or SCE agreement have price protection on currently offered Azure services and will receive the better of their baseline price or the new market price. Customer or partner’s baseline price is the price at the beginning of their Azure agreement or the price a new Azure service was made generally available. New Azure services will be priced at the then current pricelist price

Renewing or New EA/ EAS / SCE: 

Renewals and new agreements will be priced at then current pricelist price

Microsoft Online Subscription Program (MOSP) – Annual Commitment and Monthly Billing: 

Existing MOSP customers with an annual commitment receive price protection during their term. Renewals will be subject to the then current prices.

Microsoft Online Subscription Program (MOSP) – Pay-as-you-go and Monthly Billing: MOSP customers under the ‘pay-as-you-go’ model do not have an annual purchase commitment with Microsoft and hence receive no price protection. For these customers prices will increase effective August 1st 2015

Syndication and CSP: Existing subscriptions receive price protection during their term which is normally one year from the start of paid subscription. Renewals will be subject to the then current prices as determined by the channel partner. 

Does this price change impact on-premises volume licensing products?

No. This price adjustment is limited to online services only.

Why is the price of EMS increasing by more than the other Online Services?

From August 1, 2015 EMS will also include the Advanced Threat Analytics (ATA) service. EMS together with ATA will offer smart, machine-learning based security against advanced targeted attacks. ATA rights will now be included in all EMS licenses. Therefore, in addition to the local price adjustment for online services the increased value coming from inclusion of ATA, and EMS prices are being adjusted world-wide.

Comments ((Disabled)) | Trackbacks (0) | Permalink