Microsoft Pricing Update


20 mar 23 Author: Kjeld Larsen

These weeks many customers will experience price changes on their Microsoft subscriptions and may have questions to you. This is a reminder of the promotions and announcements from Microsoft having an impact on pricing as subscriptions renew at annual anniversary date:

Microsoft NCE 5% promotion discount ends

When NCE launched in January 2022, Microsoft did offer a 5% promotional discount for 12 months for subscriptions purchased between January 11 and March 31. As these subscriptions pass the 12 months anniversary date, the promotion will no longer be applied to the subscription.

March 2022 price increase of Office 365 and Microsoft 365

March 1, 2022, Microsoft had a price increase on 6 selected Office 365 and Microsoft 365 products. Products purchased on annual term before March 1, 2022, have been locked to the price for 12 months, and will see the price increase as the subscription renew after March 1, 2023.

  • Microsoft 365 Business Basic – 20% increase
  • Microsoft 365 Business Premium – 10% increase
  • Microsoft 365 E3 – 12,5% increase
  • Microsoft Office 365 E1 – 25% increase
  • Microsoft Office 365 E3 – 15% increase
  • Microsoft Office 365 E5 – 9% increase

As you may recall, Microsoft had some trouble processing orders the last days of February 2022, and therefore orders processed the first weeks of March was applied a discount to match the February price. This discount will also end by the anniversary date in March 2023, and therefore all subscriptions will now be charged the new price. 

April 2023 FX rate adjustments

In January Microsoft announced the plan to harmonize the global pricing of cloud products, meaning customers will have consistent pricing reflecting the exchange rate of the local currency to the USD. In the future, Microsoft will assess pricing in local currency as part of a regular twice a year cadence, taking into consideration the currency fluctuations relative to the USD.

Starting April 1st. pricing for Microsoft Cloud products will be adjusted in the following currencies:

  • EUR +11%
  • DKK +11%
  • NOK +11%
  • SEK +15%
  • GBP +9%

This price adjustment is on all cloud products including Microsoft 365, Office 365, Dynamics 365 and other seat-based offers. Perpetual licensing and software subscriptions are not impacted. Also Azure subscriptions on Azure Plan are not impacted as they are already monthly charged at the monthly FX  rate.

For any subscriptions on annual term, you will not see the price adjustment until your next renewal.

  • If you did purchase or renew a subscription on annual term in March 2023, you will not see the currency adjustment until March 2024.
  • If you did purchase or renew a subscription on annual term in April 2022, your subscription will renew in April 2023 to the new price adjusted to new FX-rate.
  • If you do have subscriptions on monthly term, your subscriptions will renew in April 2023 to the new price adjusted to new FX-rate.

January 2023 Incentive Adjustments

Last a reminder, from January 1, 2023, partners will no longer earn incentives on subscriptions in the old, legacy CSP-program. Only subscriptions in the New Commerce Experience will be eligible to partner incentives.

If you still have any subscriptions in the legacy CSP program, do consider to move those to Microsoft New Commerce no later than March 31. Then you can secure the March pricing before the April FX-rate adjustment for 12 months.