Stay Ahead with Bytes: Your Guide to Microsoft's Latest Licensing Updates

Tuesday 12th November 2024

Nathan Miller

Microsoft Program Manager

Author

As Microsoft’s number one UK Partner, Bytes is dedicated to keeping you in the loop with the latest changes in Microsoft licensing. Today Microsoft have rolled out several updates that will impact customers, and it's crucial to understand your options and the timelines involved. Let's dive into the key changes and what they mean for you.

The Future of Enterprise Agreements

Starting April 1st, 'Simple Cloud only' Enterprise Agreements (EAs) will no longer be renewable. Customers currently on these agreements will need to choose between two options: an MCA-E (Microsoft Customer Agreement - Enterprise), which is a transactional-only agreement with Microsoft, or CSP (Cloud Solution Provider). Microsoft has confirmed that CSP will be the hero motion for Small and Medium-sized Customers (SMC), and in their future plans, customers will either have an MCA-E (with a partner providing wrap-around services) or CSP.

Customer Benefits:

Flexibility: CSP offers more flexibility in terms of services and support, tailored to your specific needs. Leverage a range of purchasing and billing options to perfectly fit your needs.

Enhanced Support: With Our CSP offering you get access to a partner who can provide comprehensive support and services across all Microsoft services. As standard all our CSP customers benefit from ‘Core’ support FOC with further options to purchase upgraded coverage through our Enhanced and Expert packages.

Future-Proofing: Aligning with Microsoft's future plans ensures that your business stays ahead of the curve.

Streamlined Management: Through our Cloud Dashboard we help customers consolidate critical administrative tasks in a user-friendly interface, covering everything from updates and user access to billing, provisioning and cost management. We provide a simple pane of glass view across your current estate, any available promotions and renewable management. Ensuring you have all the correct information at your fingertips.

We understand all customers have different requirements, setups and timescales. Our team of Microsoft experts are able to help you map and plan for these changes, to ensure a smooth, seamless transition.

Copilot Pricing Update, Billing Flexibility and wider ramifications

From December 1st, Microsoft will introduce a monthly billing option for M365 Copilot, M365 Copilot for Sales and M365 Copilot for Services! While you will still need to commit to a yearly agreement, you now have the option to choose between yearly or monthly billing. This flexibility comes at an increased cost of 5% and will be made available to new subscriptions first.

It is worth noting that Microsoft have provided a further discount on M365 Copilot of 15% (Until December 31st via NCE) and recently introduced new pricing for Not For Profit customers. This new billing offer can be combined with either of these, offering Corporate customers a 1 month window to take advantage of the discounted rate and billing flexibility.

Customer Benefits:

Budget Management: Monthly billing allows for better cash flow management and budgeting.
Flexibility: The option to choose between yearly and monthly billing provides greater flexibility to meet your financial needs.
Coterminosity ; The ability to ‘co-term’ all your subscription end dates across your full Microsoft NCE estate. Allows for better renewal planning and can help reduce your Copilot term. A great help for customers looking to launch a pilot!
Better Pricing; For those customers looking to test Copilot, December is the perfect time to work with Bytes on leverage all the options available. Helping you take advantage of new billing terms, Promotions and funding/workshops is what we, the number 1 Copilot partner in the UK, do best!

At the same time Microsoft have announced that this billing structure will become the norm across ALL Microsoft 365, Office 365, EMS, Dynamics 365, Power Platform and other Online Services from April 1st for both new subscriptions and renewals. This means that it has never been more important to work with a Partner who understands you and your business and has the ability to help drive adoption across your current licenses and optimise your services. If annual commit, monthly billing customers DO NOT act at renewal they will sleepwalk into a 5% price increase across their entire estate. The change will come into effect across CSP/NCE, Web Direct and MCA-E.

Discount on Microsoft 365 E5

Microsoft is offering a worldwide promotion for brand new customers, providing a 15% discount on Microsoft 365 E5. This promotion is available for new customers only, and the order must be placed on an annual commitment between January 1st and June 30th, 2025.

Customer Benefits:

Cost Savings: New customers can take advantage of significant savings with a 15% discount.

Enhanced Features: Microsoft 365 E5 offers advanced security, compliance, and communication tools, providing great value for your investment.

Consolidation of Services: Microsoft 365 E5 allows customers to assess their other IT Vendors and realise costs savings through consolidation. Cost savings could be seen in terms of a reduction of spend on other vendors/services and in time used to manage a range of other Vendors, Portals, Teams etc..

Return on ROI: According to a 2018 Forrester Consulting TEI study, organizations that implement M365 E5 licenses can achieve an average ROI of 123% and a payback of 10 months

What next?

For further information on how to navigate these changes and to discuss your options, please reach out to us at [email protected].

At Bytes we understand that all business are different. Our team of over 200 certified Microsoft staff are on hand to help you make the best decisions for your business.

While the message from Microsoft attempts to provide a clear vision for the future, this will pose several questions for customers. We recommend all customers work with Bytes and through range of Software Asset Management, Commercial Advisory Services, The Bytes FastTrack service and License Health checks, we are committed to ensure that you are provided the full picture, with all available options so you can confidentially consume your Microsoft services and make the most out of your Microsoft investment.

Want to keep informed? Sign up to our Newsletter