Mitch Colton, Colton Computers Managing Director, sits down with Jo McRae, Anson Medical Director, to talk about some of the main questions around Microsoft New Commerce Experience.

You might have seen some buzz in the news around the upcoming changes to Microsoft seat-based licenses and the “New Commerce Experience.” The changes kick in from 1 March 2022, so if you are using Office 365, you are going to be impacted.

So, what is changing?

The three biggest shifts you need to get your head around are:

  1. Month-to-month licensing will be hit with a 35% price rise across all Microsoft 365 licenses from 1 March 2022
  2. 12-month contracts (paid monthly or annually) will have a 15% price rise across all Microsoft 365 products when renewed from 1 March 2022 onwards
  3. You will have 72 hours to make any changes to your user numbers after purchasing a license. Otherwise, you need to wait until the time of renewal to change license numbers. This means that if you lock in 10 users for 12 months, you can’t reduce below 10 users even if staff leave. You can increase your user numbers, but then are locked into the increased number for the remainder of the contracted period.

The good news

If you re-contract before 20 February 2022, you can lock in your current pricing for the next 12-months. For companies that might have some seasonal changes to staff numbers, the best approach is to use a mix of 12-month contracts and month-to-month licensing.

What happens if I do nothing?

If you don’t take any action, we will move you across to a month-to-month plan (the expensive one).

Get in touch now on or call the team on (02) 6361 1116