Microsoft reveals plans to change the way subscription licensing works

Microsoft have recently announced a whole host of changes in the way in which subscription licenses will work going forwards. These changes will impact on all businesses that have subscriptions across Office, Microsoft 365, Business Central or Dynamics 365 / CRM.  

The most significant change is the fact that there will now be different lengths of terms that you will be able to sign up for starting from 30 days, 12 months or 36 months (which will be available at a later date). For these terms, Microsoft will be fixing the price of the subscription, however along with this they will also be bringing to the table some changes in terms of the overall flexibility during these terms: 

• You will be unable to cancel a subscription during any term’s duration. 
• You will be unable to reduce the number of users on the subscription until the end of the term. 
• You will be able to add new users, however this will then be the minimum number you can have until the end of the term. 
• The partner that you used for your licensing will need to manage those licenses for you until the end of the term. 

You will find that over the long term, it won't be as flexible as before under the legacy CSP agreements that we’ve been accustomed to over the last 14 years. 

The next question you ask is why don’t we just put all of our customers on the 30-day term which enables them to cancel and reduce the number of users after 30 days? Well, this is where Microsoft has slapped on another 20% to the 30-day agreements, even though the flexibility remains, you will be paying for it. 

Here at Advantage, we are able to make use of all terms for the same product, so if your business requires 30 Dynamics 365 / CRM subscriptions but needs a certain number for a limited time that you will want to remove, we can give you 30 subscriptions on the 12-month term and another 10 on the 30-day term at a higher cost. This will give you that flexibility to remove the 10 users after 30 days. 

You will find that your current agreement will expire at the end of July, so we will be in touch shortly to give you all the options. If we don’t hear back from you, you will be put on the 30-day term for a higher price until you decide what you wish to do but it is important to note that this will only be on a temporary basis. 

The best-case scenario would be to discuss all the options with you before this happens to ensure that your pricing remains consistent and is locked down for a longer period of time in line with what Microsoft is changing via their new subscription model, New Commerce Experience (NCE). 

Next Steps? 

If you are looking to discuss all the different licensing options that are available before the end of July then please get in touch with your designated account manager or give the team a call today. 

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