Over the past 12 months, Microsoft has been in the process of changing its Monthly Subscription Terms and Pricing called New Commerce Experience which will take effect on the 1st of July 2022. This will affect all Microsoft/Office 365 pricing and Commitment terms for all Cloud Service Providers Worldwide. This is a considerable change in how your Microsoft 365 subscriptions are purchased and action will be required to limit the price increase on the cutover date. Currently, Microsoft allows you to add and remove a licence as required, allowing for pro-rata billing e.g. adding a new licence on the 2nd of the month and removing it on the 15th you are only charged for the days you required the licence.
With the New Commerce Experience Subscriptions will be split into 2 commitment terms, Month to Month or Yearly. On a Month to Month term you are now required to pay for the licence for the entire month. Microsoft has removed the ability for pro rata billing and are applying a 20% price increase will be applied to all Month to Month Subscriptions. With the new Yearly terms you will now be locked in to a Yearly commitment for all licences purchased and added under this term, both of these options are still paid on a monthly basis or if preferred a yearly payment option.
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** As of March 2022 Microsoft any new commercial seat-based subscription orders in CSP new commerce will allow seven calendar days for cancellations and seat reductions instead of the previous 72-hour window.