Microsoft requires either a one-year commitment or a significant premium on monthly terms starting in March 2022. Learn more about this change and how to best prepare now!
***Note: Microsoft continues to actively make changes to this new program and release more details. Please connect with Interlink to receive the most up to date information for your specific scenario.***
Microsoft is Changing CSP Licensing:
Any organization utilizing CSP licensing needs to be aware of Microsoft’s changes, which go into effect in March 2022. Microsoft will be offering Monthly, Annual, and Three-Year subscriptions. All subscription terms will only be able to be canceled or reduced within 72-hours after purchase, and customers will be stuck with license counts until the end of their subscription term.
- Yearly Term: We expect the yearly term to be the most popular. Pricing is similar to what customers are paying today, and most CSP providers already require a one-year term – even when Microsoft allowed for monthly changes.
- Monthly Term: If an organization wishes to retain the ability to decrease seat counts/downgrade licenses at frequent intervals, then they will need to put those seats on a Monthly subscription. However, Microsoft will charge a massive premium for this option of 20%.
- Three-Year Term: The current plan is to only offer three-year terms for a limited set of offerings, including Dynamics 365 and Microsoft 365. The potential benefit here is that customers get locked into the pricing for three years to avoid potential future price increases across that term.
CSP Partners, like Interlink, will be able to continue transacting new CSP licenses without these changes until March 2022. We can also work with your organization to take advantage of pricing models, licensing structures, and promotions when applicable. Further promotional pricing details are still to come and will help mitigate Microsoft’s general price increase, which will also occur in March 2022.