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Microsoft Announces Product and Pricing Changes


Microsoft announced changes as a part of their “Modern Commerce” initiative effective Oct 1, 2018.

Highlights:

  • Commercial prices increased 10 percent over current on-premises pricing affecting Office 2019, Enterprise CAL, Core CAL, and server products.

  • Remove programmatic entry volume discounting resulting in a 2-4% increase for most commercial customers. Government customers can expect a 3-20% increase depending on the product and program.

  • Establish a single, consistent starting price across all programs aligned to web direct prices.

  • Windows 10 Enterprise E3 is only offered per-user. "Windows 10 Enterprise E3 per User" became "Windows 10 Enterprise E3".

  • "Windows 10 Enterprise E3 per Device" became "Windows 10 Enterprise". Pricing matches Windows 10 Enterprise E3.

  • Windows 10 Enterprise E5 per Device is discontinued.

  • Office 365 (now called Microsoft 365) products are not affected!

“The biggest impact will be on small and midsize commercial customers purchasing through Open Programs (including Open License, Open Value, and Open Value Subscription), MPSA, Select Plus, Select, Enterprise Agreement and Enterprise Subscription Agreement, and on government customers.” *

It's been eight years since Microsoft has raised prices on its Office applications. So, the price increase is not a surprise. However, businesses and corporations may be more concerned with the 10% price increase on Client Access Licenses, which are necessary for server operations. While 10 percent may not be a lot, it can certainly add up over time.

This announcement further emphasizes Microsoft's push towards the cloud-based subscription-based model. With the start of 2018, came Microsoft's reduced support lifecycle for Office 2019. Microsoft now plans to offer five years of support and an optional two additional years of extended support (replacing the current five-year option for extended support). So overall, customers will be receiving seven years of service for Office 2019 products, rather than the current 10.

If you need help deciphering the Microsoft Modern Commerce initiative or navigating Microsoft 365 options, contact M7 Technology Solutions. We have the knowledge and experience to help move your technology and business forward.

* Reference https://www.microsoft.com/en-us/Licensing/campaigns/modern-commerce.aspx.

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