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Recently, the software manufacturer Microsoft issued a statement expressing an increase in Office 365 prices by up to 25% that will come into effect in March 2022.

In these last two years there has been an imbalance in the economy. Without a doubt, the health crisis caused by COVID-19 destabilized the industry, and new technological advances also emerged.

Microsoft issued this announcement discreetly, but as of March 1, 2022, it will officially increase the price of many of its business subscriptions to Office 365 and Microsoft 365. Although for the costs of consumer subscriptions and education they will not enter in these settings.

The software manufacturer alleges that the reason for the increase in Office 365 subscriptions is that the economy has been recovering, in addition to the fact that the demand for various inputs exceeds the supply.

The 25% increase in the price per seat for Office 365 in support level E1 and 20% in Microsoft 365 Business Basic, with minor increases in other subscription levels. See also Microsoft increases the prices of 2 of its products.

Many subscriptions have the same name and the costs of these are similar causing confusion. We have Office 365, made up of just the basic applications, or Microsoft 365, which adds a Windows license and security tools, business mobility, and with two categories of support each, E (for companies) and F (for first-class employees). line), modifying the levels (E1, E3 and E5, or F1 and F3). Although there is no combination of Office 365 F1 or Microsoft 365 E1, for example.

There are strategies that can be implemented by IT leaders to reduce the impact of this increase. It is of the utmost importance that CIOs are attentive to these increases from now on and even more so "if they have to renew their contract in June or December of next year."

The month of June is where Microsoft contracts are renewed, and where buyers can get better deals from vendors, just before the close of Microsoft's financial year.

For companies that have just renewed a three-year contract, they should put the price increase on the agenda of their next meeting with Microsoft.

Next, learn from our expert strategies to help you know: How to reduce the impact with the increase in prices of Office 365?

• Safeguard the price for the renewal of your contracts.

This is one of the most viable options for reducing costs. Some organizations have negotiated term cost protections on their contract renewals, limiting price increases issued by vendors.

Seek advice to help you with agreements and negotiations for the renewal of contracts, in addition to helping you keep track of subscriptions in use and disuse.

Most organizations do not have such a receipt and when the negotiated discount ends, they risk paying double the list price, as it tends to increase.

• Order your discharge.

IT leaders must have full knowledge and control of the contracted licensing, its solvency. On the other hand, you should know in detail the agreements established between your licensing provider and your company in order to negotiate accordingly.

Evaluating the subscriptions of each of the teams in your company will help reduce costs, since you will only hire what is required according to the functions and profile of the employees.

Evaluate proposals from different suppliers and keep the best option, for this we suggest consulting with specialized advice so this process will be the most optimal and satisfactory for your company

• Stay in control of your software.

CIOs should be in control of any negotiations with Microsoft suppliers, and find the best alternatives to reduce costs and make the negotiations favorable for their organization.

There are infinities of applications to the cloud for the desktop where companies can rely. That is why the need for expert advice.

Although the biggest challenge for the IT industry majors is not taking Microsoft's desk expenses, but finding savings options for their IT investments.

Due to these announcements of increases by the software manufacturer, in Licensing Assurance we put at your complete disposal our team of specialists in software licensing, who with their skills and capabilities can help companies like yours to implement processes and offer alternatives of savings, which can help you reduce the costs of your IT budget and return on your investment.

Contact one of our experts.