The new ‘Microsoft NCE’ licensing model coming March 1st!

The new ‘Microsoft NCE’ licensing model coming March 1st!

In earlier blogs we have informed you about Microsoft’s announced price changes. In addition to this Microsoft are introducing a new licensing model. The model of monthly flexible arrangements has been replaced by an annual commitment to M365 and other licenses. The monthly option is still available, but will come at a higher price.

The new licensing model and price increase will affect every client. To provide a smooth transition, ABT will be providing a number of options to allow clients to realise the benefits of yearly commitment licensing subscriptions and meet our clients business and budget requirements.


New Microsoft 365 Licensing Model main changes include:

  • Month-to-month flexible commitment at a premium price.
    • A premium price on most subscriptions.
    • Full flexibility to cancel and upgrade or downgrade.
  • Yearly commitment
    • No refunds or cancellations.
    • No downgrades.
    • Upgrades and discounted price.
  • Microsoft Price Rise
    • Across the board price rise from the 1st of March.


Please Note:

As of 28/01/2021 Microsoft have not yet announced definitive rates for the Australian market. The expectation is that it will follow the US increases. The flagship license of Microsoft 365 Business Premium will likely see a 10% increase. ABT will advise of any discounts and incentives as they become available.


New term options available to customers:


  1. 365 Monthly Commitment
    • From 1st March, we will be moving our client’s Microsoft 365 Subscriptions to the Monthly commitment with full flexibility. If you would like to avoid the Premium price of this option, we recommend migrating to the Annual Pre-paid Subscription.
  2. 365 Yearly Commitment with Annual upfront payment
    • This options provide a cost effective alternative to the monthly premium pricing. No license downgrades available, however license can be added at any time.

Article used with permission from The Technology Press.

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