Everything HostPapa Customers Need to Know About Microsoft 365’s Price Increase

Everything You Need to Know About Microsoft 365’s Price Increase

March 1st marked some milestones that Microsoft has been planning for the past few years. Microsoft has increased their pricing for Microsoft 365 (e.g. Basic increasing by 20%) for the first time since its initial release in 2011. According to Microsoft, this change reflects the value that they’ve delivered to their customers for over a decade, especially in regards to communication and collaboration, security and compliance, and AI and automation. 

Microsoft’s price increase means that all Microsoft resellers are forced to increase their prices, including HostPapa. In this article, we’ll walk you through the changes so you can understand what this means for you. We’ll also introduce you to the New Commerce Experience program (NCE), which has just replaced the Cloud Solution Provider (CSP) program. Don’t worry; transition won’t require anything from you – you can rest assured that we’ll take care of everything.

The New NCE Program (Formally CSP)

In addition to the new pricing scheme, Microsoft has announced a change in the way customers purchase their licenses through their Cloud Solution Provider (CSP) program. This program is being replaced by a new plan called “New Commerce Experience,” effective March 1 for commercial businesses. The New Commerce Experience program is a fundamental and extensive change to Microsoft’s sales motion. These changes affect all Microsoft resellers and clients, not just HostPapa. Unless you have products you’re managing yourself, you don’t have to worry about it since HostPapa will take care of it for you. 

The fundamental NCE change you’ll notice will be our inability to decrease your seats or downgrade mid-term. This means you will have some planning ahead to do before committing.

At HostPapa, we’ve already started to transition to NCE. All new and renewing licenses will be gradually switched to NCE. This transition is an effort and implies important costs and work hours from our side as a Microsoft partner, but we’ll ensure it will be as smooth as possible for you as our customer. You shouldn’t notice a difference in your service or experience any downtime.

Microsoft Office 365 Price Increases and Changes 2022

Frequently Asked Questions

To make sure you haven’t missed anything, check out these FAQs.

  1. Has the price of Microsoft Office 365 increased under the NCE?

Yes, all Microsoft 365 variants we sell increased indirectly due to NCE and Basic directly due to the additional 20% Microsoft inflationary increase.

  1. What subscriptions are affected by NCE?

Microsoft 365, Dynamics 365, Power Platform, Windows 365, and all add-ons associated.

  1. Will the billing cycle change? 

HostPapa customers will keep the current annual billing cycle.

  1. Can I Increase or decrease my seat count in the middle of the term?

You can increase your subscription seat count mid-term, effective immediately, and the additional seats will be pro-rated to the original committed term and date. However, you cannot decrease the seat count mid-term.

  1. Can I upgrade or downgrade a subscription in the middle of the term?

You can upgrade your subscription in the middle of the term, partial or all, effective immediately, and the upgraded subscription would be pro-rated to the original committed term and date. However, you cannot downgrade the subscription mid-term.

  1. Will I still be able to have different invoicing dates for my M365 product? 

No, unfortunately, this is no longer possible under NCE (this is one place where HostPapa’s flexibility is hit). Gradually these will be consolidated to a single invoice.

  1. When will I have to transition to the Microsoft NCE?

The NCE is in effect from March 1, 2022. The transition is ongoing and HostPapa will take care of everything. 

HostPapa’s New Microsoft 365 Pricing Plans

Check out the chart below for a breakdown of the changes in pricing for our Microsoft 365 plans. 

PlanPrevious Monthly Price Per User (USD) – Annual Commitment New Monthly Price Per User (USD) – Annual Commitment 
Microsoft 365 Business Basic $9.99$11.99
Microsoft 365 Business Apps$10.99$12.99
Microsoft 365 Business Standard $16.99$17.99

With HostPapa, You Don’t Need to Worry About These Changes

The switch from CSP to NCE is creating waves, but HostPapa’s Microsoft 365 Service is taking care of this transition for you. As a HostPapa customer, you don’t need to do anything – you’ll be automatically moved to the new Microsoft pricing and experience. If you have any questions, please contact our Support team

Last modified on: May 29th, 2023

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The HostPapa customer support team is here to help you achieve your online aspirations and your business goals.

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