You’re not the only one with a severe case of whiplash caused by the Microsoft licensing roller coaster of the past 2 years.
Nortec runs on the same solutions we recommend to clients, and we’ve experienced the same frustration over absurd licensing changes and price hikes.
The chaos started when CSP customers saw the cost of month-to-month and annual subscriptions go up 10% from $16 per month, per license to $17.60 per month, per license.
In the midst of that rate increase for Microsoft 365 licensing, Microsoft rolled out the New Commerce Experience (NCE) and told everyone switching to that purchasing model was mandatory.
The cost of switching proved more painful than we could have expected.
Anyone on NCE now pays 20% more for an annual subscription. Those who opted to stay month-to-month saw costs rise 32% – for the exact same licensing they had before.
The increases occur without added value. You aren’t paying more to get more. You’re just paying more.
Then, to rub salt in the wound and confound people even more, Microsoft indefinitely delayed NCE in 2022. New users and current NCE customers are stuck with the more expensive license. Those who opted to wait to convert are still on the earlier model and paying less.
That means a CSP business premium customer pays:
- $17.60 per user/month on a month-to-month agreement
- $16 per user/month on a month-to-month agreement for those who still have time left on their current CSP license.
But a NCE early adopter pays:
- 21.12 per user/month on a month-to-month agreement
Hardly an incentive to jump on the next Microsoft ship that rolls by. For those who are sitting pretty in the CSP model and enjoying their lower cost of licensing, it’s important to know that you can buy more of the same type of license, but you cannot purchase any additional licenses in the CSP framework – you’ll end up having to purchase through NCE.
There Is a Silver Lining to Microsoft Price Hikes
Nortec is going through this with you. We know it’s frustrating and confusing.
We have been tracking the changes and finding ways to get clients off the roller coaster and into a sustainable program that provides licensing, support, and budget stability, despite over 1,500 different options in the new Microsoft framework.
How To Ditch the Microsoft Licensing Roller Coaster
When you work with a managed cloud service provider, you can insulate your business against volatility – including price increases. Plus, you can wrap care around your licensing, which adds value to your entire suite of cloud services and business.
7 Ways Managed Cloud Services Are a Value-Add for Your Business
1. Stop paying full price for Microsoft 365
NCE rollout is delayed, but the lower priced CSP model is not available. If you’re buying a Microsoft 365 license, you’re stuck with the higher cost for NCE.
Unless you have a partner like Nortec on your side.
We pass on exclusive discounts to clients so they can put money to work in other areas of their business. Compare our price to what you’re paying right now, using our free calculator.
2. Insulate your business from budget shocks
Whether it’s from Microsoft, the supply chain, or inflation, no one wants to figure out how to find ways to pay for surprise price increases.
A fully managed cloud solution helps lock in your budget and create stability. Compared to organizations that only obtain licensing through us, our Managed Cloud Services clients have a lower rate of increase when Microsoft raises prices.
3. Make fewer decisions
On top of all the recent changes, Microsoft has added 30+ licensing options, and they all have different price structures. The number of possibilities for licensing Microsoft 365 and related products is over 1,500 – hardly something a non-expert can wade through and make the best selection.
Our experts take on the responsibility of finding the right choice for you. We match you with the best choice based on your operating environment and business goals so you don’t wind up paying more.
4. Unlimited help desk support
The standard, off-the-shelf Microsoft 365 license does not include support. You either need:
- The personnel and resources to troubleshoot problems internally, or
- Unlimited support from an IT partner who employs technicians adept at resolving Microsoft 365 issues
5. White glove set up
Advanced tools and better processes have made it less disruptive to migrate to the cloud. Do not confuse this with it becoming easier to execute a cloud migration.
You still want an expert to plan, test, and deploy a white glove cloud migration so that the transition goes as smoothly as possible.
Read How the Right Plan Enabled an Emergency Cloud Migration on New Year’s Day
6. Secure from Day 1
Microsoft is recognized as an industry leader for cybersecurity. These award-winning protections won’t help your business if the solutions aren’t properly configured and turned on.
Tip: Look to see if your IT partner has Microsoft cloud competencies. These certifications prove they can securely set you up in the cloud.
7. Finally, turn the cloud into a competitive advantage
Most organizations move to the cloud and operate exactly as they did with an on-premise server because they don’t know the time-saving, productivity-boosting hacks the cloud provides.
We think you deserve a better ROI on the cloud, and we built training into our managed services. We share how to best use cloud-based software so that it fulfills the promise of digitally transforming your business.
Cloud Management Fosters Business Stability
You can continue to ride the Microsoft roller coaster and deal with the unpredictable ups and downs.
Or, you can have our experts manage the cloud for you.
We eliminate distractions, minimize price shocks, and help you stabilize your business.