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Latest updates on Microsoft 365 Pricing - Feb 2022

Craig Atkins • February 18, 2022

Microsoft 365 Pricing Is Changing From March 2022

Hopefully from our previous communications you will be aware that there is, unfortunately, a big change in Microsoft 365 licensing coming upon us all in March 2022.


Essentially, Microsoft are removing the flexibility to add & remove licenses on a monthly basis unless you switch your licensing to ‘monthly’ licenses – which will carry a pricing uplift of 20% over and above the base license cost.

Annual licensing is now the preferred route, which ties you (and us) into an annual contract for the licenses you require, but does not carry a price uplift.


Alongside this, Microsoft are increasing the base license cost of 6 of their product SKUs:

Microsoft 365 Business Basic

Microsoft 365 Business Premium

Office 365 E1

Office 365 E3

Office 365 E5

Microsoft 365 E3


The new pricing can be seen in the image below:

Micorosft Pricing Changes for March 22




Q&A


Here are some key questions answered:


If I commit to annual licensing, do I lose the license when a staff member leaves?


No, the license returns to your licensing pool and can be allocated to a new staff member when required. You are still committed to keep the license for the year, but it can be added/removed from actual users as and when required.


What happens to new licenses added mid-term on an annual agreement?


These will be run co-terminus (they will expire at the same time as the original agreement) so your annual renewal will always be at the same time each year, and you will be billed the additional cost as a one-off uplift or monthly depending on your payment terms.


Can I Mix & Match?


Yes, you can mix subscription types in your account.
If you have users who are likely to be with you for more than 7 months it’s better value to have them on an annual license, but for transient staff/short term placements you can have those users on month to month.


Can I still pay monthly for annual licenses?


Yes, subject to a credit check and approval from 1-Fix accounts team you will be able to continue to pay monthly for your licensing even when they are committed on an annual agreement.


If we need to close our business/sell our business/leave 1-Fix what happens?


You will still be required to pay for the remaining term of the licenses and they will still be valid/available for you until the end of the committed term. Depending on the scenario we may ask you to pay up-front for the remaining months of the term at this point, or we can continue to transact on a monthly basis solely for the licensing.

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