Santa Monica, like many other cities in Southern California, gets its Microsoft products through the County of Riverside Microsoft Enterprise Agreement. That was the first step in trying to get a handle on the cost,” he says.
Microsoft office price license#
“We set about defining profiles for the different types of workers in the city, and what type of Microsoft Office license they would need. “You need to get your house in order and not just accept what Microsoft says you need,” he says. Gone are the days when you have the most expensive license with the fullest functionality for everyone,” says Cevetello. “Knowing that the contract was running out, we assessed all of our licenses in the city, and we tried to really right-size our licensing. That’s what Joseph Cevetello, CIO of the City of Santa Monica, Calif., did. “Push your organization to really look, employee by employee, at what they are using at a feature level in each subscription,” Mansfield says.īut it’s a slow process, with many organizations starting on it a year before their contract expires. Having detailed, granular information about the features your organization uses is essential for pushback in negotiations. But ask yourself, do you and your colleagues use included applications such as Stream, Planner, Delve, Kaizala, Sway, and Yammer every day … or ever? Microsoft will likely begin - as it began its blog post about the changes - by talking about all the extra applications and value it has added to Microsoft 365 over the years. Pricing won’t be the first thing discussed, though. Unfortunately, says Mansfield, most companies don’t have that protection so when their current negotiated discount ends, they’re exposing themselves to the double whammy of a return to list price - and that list price rising too. “That’s the gold standard,” Mansfield says, something he and his colleagues aim for in the deals they help their clients negotiate. Some companies have negotiated renewal term price protections into their contracts, limiting how much vendors can increase prices. But if CIOs leave it until the price list changes on March 1 to begin negotiations, then they may run out of time.Įven companies that have just renewed on a three-year deal should put the price increase on the agenda for their next meeting with Microsoft, to put the company on notice that they will be looking for a better deal, he says. June is a popular month to renew Microsoft contracts, because buyers can often get good deals out of sales staff just before the close of Microsoft’s financial year. Start preparing nowĮnterprise CIOs need to pay attention to these increases right now: “If you have a renewal in June or December next year, you better be on top of this right now,” Mansfield says. “They didn’t touch the price of Microsoft 365 E5, the holy grail for them,” says Adam Mansfield, a practice leader at UpperEdge, a consultancy that advises enterprises on IT sourcing. One thing is clear: Microsoft is trying to entice enterprises to spend more to save more, as the percentage price increases will be smaller on fuller-featured (and more expensive) bundles, closing the price gap between Office 365 and Microsoft 365, and making the higher support levels more attractive.
But some combinations of those attributes don’t exist: There’s no Office 365 F1, or Microsoft 365 E1, for example.
Microsoft office price windows#
There’s Office 365, with just the basic apps, or Microsoft 365, which adds a Windows license and enterprise mobility and security tools, each with two categories of support, E (for enterprise) and F (for frontline workers), and each of those can come in different levels (E1, E3, and E5, or F1 and F3).
Pricing for the many similarly named subscriptions is confusing. 19 blog post, “New pricing for Microsoft 365,” you would still have had to wade through over 800 words about all the features the company has added to the package since its launch 10 years ago before getting to the bottom line: a 25% increase in the per-seat price of Office 365 at the E1 support level and a 20% increase in Microsoft 365 Business Basic, with smaller increases in other subscription levels. (Consumer and education subscription prices aren’t changing - for now.)Įven if you spotted the company’s Aug. You might not have heard about it from your sales rep yet, but Microsoft quietly announced that starting March 1, 2022, it will hike the price of many of its enterprise Office 365 and Microsoft 365 subscriptions. Soon, that list will include Office 365 subscriptions. As the economy picks up, demand for many inputs is outstripping supply, driving up prices for things as diverse as construction materials, energy, food ingredients, and semiconductors.
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