Everything You Need to Know About Microsoft’s Upcoming Price Increases and Updates

Partnering with a Licensing Advisory and Cost Optimization provider like Silver Leaf Solutions empowers software asset management (SAM) and IT procurement teams to tap into the expertise of professionals dedicated to monitoring updates, license changes, contract shifts, and price adjustments from key software vendors. This support allows businesses to focus on high-value SAM activities, while specialists guide them through actions to mitigate risks and optimize software spend.?

Microsoft Dynamics 365 Price Increase?

Starting October 1, 2024, Microsoft will be raising the prices of Dynamics 365 by 9-14% for both on-premises and cloud solutions, which will significantly impact budgets. It is essential to prepare for these changes to minimize financial disruption.?

Dynamics 365’s on-premises customer engagement and operations products will increase in price by the same percentage as their cloud counterparts. However, cloud solutions such as Microsoft Dynamics 365 Business Central will not be affected. These global price changes will apply to both new and existing customers upon renewal after October 1, 2024. Additionally, to comply with U.S. regulations, list prices for the government sector will increase by 10%, with a further adjustment slated for October 2025, to align with commercial pricing.?

Unbundling Microsoft Teams?

Microsoft has also revamped its licensing structure for Microsoft 365, Office 365, and Teams, following a similar shift in Europe. This change addresses antitrust concerns regarding bundling practices, as it was perceived to grant Microsoft an unfair market advantage. Consequently, Microsoft Teams will no longer be included within the Enterprise Agreement by default, requiring a separate purchase.?

For organizations currently subscribed to impacted suites, they can continue with their existing plans or switch to the new licensing structure upon contract renewal or anniversary. For new subscribers outside the European Economic Area and Switzerland, access to Teams will require purchasing two SKUs: a Microsoft 365 or Office 365 suite without Teams, and the Microsoft Teams Enterprise add-on.?

Updates to Frontline and Business Suites?

Microsoft’s Frontline and Business suites are being restructured to offer flexibility in the inclusion of Teams. Customers can choose between retaining their existing suites, which include Teams, or transitioning to the new options without it. This choice allows organizations to tailor their software according to their specific needs, ensuring they have the right suite to support their workforce.?

Azure Changes?

Azure services have also experienced policy updates. Microsoft has extended the window for compute reservation exchanges (for Azure Virtual Machine, Azure Dedicated Host, and Azure App Service) until at least July 1, 2024. This extension offers organizations more time to optimize their cloud spend. Future changes to this policy will come with a six-month warning, providing businesses ample opportunity to adapt.?

It’s important to note that this extension applies solely to the specified services, with other Azure reservations remaining unaffected.?

How Silver Leaf Solutions Can Assist?

Silver Leaf Solutions is committed to helping organizations navigate these price increases and licensing changes. With our in-depth knowledge of Microsoft licensing, we ensure clients have an accurate overview of their Microsoft estate, supported by tailored strategies to handle these changes effectively. Please contact our team today at [email protected] to ensure you're fully prepared for these upcoming changes.?