20% increase in Office price when Microsoft does not use annual subscription
It turns out that Microsoft told its partners that 'customers in the Office suite who pay monthly instead of yearly will get a 20% increase in price.' Microsoft derives most of its revenue from business customers rather than consumers, and the price increase is believed to be aimed at migrating Office business customers to annual subscriptions.
Microsoft will charge more for Office customers paying month to month
Microsoft Office 365 price increases are upsetting companies, says report | Windows Central
According to CNBC, Microsoft will launch a new program called 'New Commerce Experience for Office' in 2022, raising the price of the Office suite by 20% for customers who do not have an annual subscription. Microsoft has many business customers, and this information has already been passed on to its partners. Rob Schenk, co-founder of security consulting firm Intivix, one of our partners, told clients about the price increase and said some said he didn't like it.
There are also many opposition to price increases, and more than 1,400 people have signed the petition against price increases at the time of writing the online petition, Change.org.
Campaign · Petition for Microsoft to revoke the 20% price increase on monthly Microsoft 365 products · Change.org
The price after the specific price increase is unknown. Also, according to an internal document obtained by CNBC, if you decide that you don't need Office during the contract period, you can't switch your annual subscription to a monthly subscription and you'll have to pay the full annual subscription fee. That thing.
When CNBC contacted Microsoft, a spokeswoman said, 'Microsoft offers flexible purchasing options to meet the diverse needs of our partners and does not disclose information about our partners' pricing approaches or premiums to the public. 'The new program offers a monthly option, which allows partners to offer their clients the product at a special price and flexibility,' he said. In addition, Microsoft has not officially offered monthly subscriptions so far, but by convention, customers were able to adjust the number of monthly users. For this reason, companies that were pandemic and had unstable personnel seemed to be very useful.
George Hammerschmidt, vice president of Microsoft's partner carrier Nortec Communications, pointed out that the inability to reduce subscription units is more of a problem for customers than price increases.
Microsoft announced a price increase for 'Microsoft 365' in August 2021, and the price increase by 'New Commerce Experience for Office' will follow. Originally Microsoft planned to implement the 'New Commerce Experience for Office' in October 2021, but due to confusion, the implementation has been postponed until January 2022.
'Microsoft 365' is scheduled to raise the price in March 2022, what is the target plan? --GIGAZINE
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