“That’s the gold standard,” Mansfield says, something he and his colleagues aim for in the deals they help their clients negotiate. Some companies have negotiated renewal term price protections into their contracts, limiting how much vendors can increase prices. But if CIOs leave it until the price list changes on March 1 to begin negotiations, then they may run out of time.Įven companies that have just renewed on a three-year deal should put the price increase on the agenda for their next meeting with Microsoft, to put the company on notice that they will be looking for a better deal, he says. June is a popular month to renew Microsoft contracts, because buyers can often get good deals out of sales staff just before the close of Microsoft’s financial year. But some combinations of those attributes don’t exist: There’s no Office 365 F1, or Microsoft 365 E1, for example.Įnterprise CIOs need to pay attention to these increases right now: “If you have a renewal in June or December next year, you better be on top of this right now,” Mansfield says. There’s Office 365, with just the basic apps, or Microsoft 365, which adds a Windows license and enterprise mobility and security tools, each with two categories of support, E (for enterprise) and F (for frontline workers), and each of those can come in different levels (E1, E3, and E5, or F1 and F3). Pricing for the many similarly named subscriptions is confusing. 19 blog post, “New pricing for Microsoft 365,” you would still have had to wade through over 800 words about all the features the company has added to the package since its launch 10 years ago before getting to the bottom line: a 25% increase in the per-seat price of Office 365 at the E1 support level and a 20% increase in Microsoft 365 Business Basic, with smaller increases in other subscription levels.
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