Key areas affected are:

  • Volume License Agreements
  • Office Commercial pricing 
  • Windows 10 Operating System 

Volume Agreements 

  • Volume discounts (Level A and Open Level C) on Enterprise Agreement (EA)/EA Subscription, MPSA, Select/ Select Plus and Open programs (Open, Open Value, Open Value Subscription) are being removed. Although Level A volume discounts will go, the price band will remain; Open Level C will disappear completely.
  • Government customers will see an increase for specific products, with pricing for on-premises and online services being aligned to the lowest commercial price in EA/EAS, MPSA, Select Plus and Open Programs.
  • Changes are being made to the Education Licensing (EES) to modernise the program and better support Cloud offers.

How will this affect me?

Microsoft have advised that small and midsize commercial customers will be the most affected. Businesses without an Enterprise Agreement who purchased through Select, Select Plus, Open, Open Value or MPSA will not have price protection and will be impacted as of 1st October. 

  • If you're an EA customer, it'll be at renewal time that this will affect you, giving you the opportunity to review the alternatives in good time. 
  • The increase in government licensing costs will impact the most for online services. All government entities should evaluate their licensing strategy at a contractual and usage level.

Office Commercial Pricing

All Office commercial prices are increasing by a flat, across the board 10% on current on-premises pricing, including Project and Visio, Enterprise CAL, Core Cal, and server products such as Skype for Business Server, Project Server, Exchange Server and SharePoint Server.

How will this affect me?

If you utilise on-premise Office, you'll see an increase in costs. Moving to Office 365 is now an option, which will require particular levels of planning, due diligence and change management. A well constructed plan will help you achieve immediate ROI and prevent loss of productivity - this is explored in more detail in our 6 Steps to Success

Windows 10 Operating System 

Windows 10 Enterprise E3 is being renamed:

  • Windows 10 Enterprise E3 per User becomes Windows 10 Enterprise E3, ie E3 will now refer to the per user offer only
  • Windows 10 Enterprise E3 per Device becomes Windows 10 Enterprise, and the cost will increase to match  Windows 10 Enterprise E3
  • Windows 10 Enterprise E5 per device is being discontinued

How will this affect me?

 If you're currently utilising a significant volume of device-based licenses, you'll be moving towards a subscription-based cloud license, which brings compliance benefits and reduces complexity.

What should I do now?

All organisations will be impacted eventually, however it's important to ensure the next steps are carefully considered. If you have any queries regarding your current licences, or the options available, get in touch with our Microsoft advisors.