Dataprise Colorado: Microsoft Billing and Licensing Questions Microsoft's New Commerce Experience Microsoft offers seat-based licensing, including Office 365, Microsoft 365, Windows 365, and Power Platform, primarily through an annual subscription model. As a certified Microsoft Solutions Partner, Dataprise Colorado can help you understand how these subscription requirements impact your business and your Microsoft licenses. When did the New Commerce Experience go into effect for Microsoft customers? Expand All Microsoft subscriptions are now under the New Commerce Experience. What term options are available under the New Commerce Experience? Expand There are three term options for New Commerce Experience: Monthly – Subscriptions will be held to a monthly commitment* Annual – Subscriptions will be held to an annual commitment. Annual, Paid Monthly – Subscriptions will be held to an annual commitment with payments spread over 12 months. Multi-Year – Subscriptions will be held to a multi-year commitment *Please Note, there is a 20% premium added to the license price for monthly commitments. Is there an added cost for monthly commitments? Expand Yes, all monthly commitments will have a 20% premium added to the license price. Can I pay monthly for a yearly commitment? Expand For annual commitments exceeding $2,000/year, customers will have the option to pay upfront for their annual commitment or receive 12 monthly bills. For commitments under $2,000/year, customers must pay upfront for their subscription. Can I pay monthly for a multi-year commitment? Expand Yes, customers with commitments exceeding $2,000 annually will have the option to pay upfront for their multi-year commitment, pay yearly for their multi-year commitment or receive 36 monthly bills for their annual commitment. For commitments lower than $2,000 annually, customers will have the option to pay upfront for their multi-year commitment or pay yearly for their multi-year commitment. Are there price changes to the SKUs included in New Commerce Experience? Expand While there are no price changes related to the expansion of New Commerce Experience, Microsoft has announced price increases to the following SKUs starting on March 1st, 2022: Enterprise SKUs Office 365 E1 is increasing to $10 per user per month (PUPM) from $8 PUPM Office 365 E3 is increasing to $23 PUPM from $20 PUPM Office 365 E5 is increasing to $38 PUPM from $35 PUPM Microsoft 365 E3 is increasing to $36 PUPM from $32 PUPM SMB SKUs Microsoft 365 Business Basic is increasing to $6 PUPM from $5 PUPM Microsoft 365 Business Premium is increasing to $22 PUPM from $20 PUPM NOTE: Prices for Microsoft 365 E5, Microsoft 365 Business Standard, & Frontline SKUs will not be changing at this time. These price changes will impact all public-sector customers worldwide. Purchasing channels for Nonprofit solutions is not changing at this time. Can I make seat count changes on an annual or multi-year commitment? Expand Customers will have 7 days from the time of purchase to decrease their seat counts for a subscription (subject to proration). Customers can at any point during their commitment increase their seat count for an existing subscription. What is the cancellation policy for subscriptions on New Commerce Experience? Expand Customers have 7 days after purchasing to cancel a subscription. Customers will receive a full refund if the subscription is cancelled on Day 1 and will receive a pro-rated refund for subscriptions cancelled on Days 2 through 7. The 7-day period begins on the same day a customer starts a subscription and no refunds will be granted after the 7-day period. Once a subscription is cancelled, this cannot be reversed. The subscription will immediately enter a “disabled” status where users cannot access services or files; however admins will have to access to data for subscription(s) for 90 days. Will my subscription auto-renew? Expand Subscriptions will automatically renew at the end of the subscription(s) term and the 7-day cancellation period will restart for the renewal term. What is the renewal date for newly added seats to a subscription on New Commerce Experience? Expand The renewal date for the newly added seats will match the original renewal date for that subscription. This means if you’re adding additional licenses of the same SKU, the new and existing licenses will all renew on the original subscription’s renewal date. Can I have both an annual commitment and a monthly commitment subscription on my account? Expand Yes, you can combine monthly and annual commitments on your account to take advantage of lower costs for a core number of licenses while also maintaining flexibility with monthly commitments for a portion of licenses that you may not need or want to change during the 12-month period. Can monthly term subscriptions be changed to annual term? Expand Yes, a customer’s subscription can be changed from a monthly term to an annual term in New Commerce Experience. Can I upgrade my licensing to a higher SKU while locked into an annual commitment? Expand In the New Commerce Experience, upgrading means going from one paid subscription to another paid subscription. You can upgrade all seats as a full upgrade or some of the seats as a partial upgrade. It is important to know that subscription upgrades must be on the authorized list of upgrades provided by Microsoft. Please note, subscription downgrades are NOT supported in the New Commerce Experience.