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UPCOMING MICROSOFT LICENSING CHANGES

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Microsoft has announced some upcoming changes that will impact how businesses
obtain per-seat licensing. These changes will potentially affect both the price
customers pay for their licensing and the way customers will need to approach
the term for which licenses are purchased.


PRICE INCREASE



March 1, 2022:

The first change Microsoft has announced will go into effect on March 1, 2022,
and is relatively straightforward. Prices are increasing across the Microsoft
catalog for many Office 365 and Microsoft 365 licenses.



*All prices listed are per license per month

 

For those of us in the industry, these cost adjustments are not unexpected.
Microsoft hasn't increased its prices in years and has continued to steadily
increase the features and capabilities of these products.

We know you have budgets and that this information results in direct financial
adjustments for many of you. Get ahead of the curve by letting Summit Technology
review your organization's licensing needs and see what we can do to help you
lock in your current rate before these changes take effect. 


ADDED PREMIUM



July 1, 2022:

The second change Microsoft announced will occur 4 months later, taking effect
on July 1, 2022.

In addition to the price increases that will take effect in March, Microsoft
will be adding an additional 20% premium to licenses that are purchased on a
month-to-month subscription term.

How it Can Affect Your Budget

Between the price increase in March and the premium for month-to-month
subscriptions in July, the costs for your Microsoft licenses could significantly
increase this year. Take the example below of 100 users of Microsoft 365
Business Premium. That’s an increase of 32%.



Annual Subscription Term

Licenses acquired with a 1 or 3-year term will not be subject to the above 20%
premium. Licenses acquired in an annual subscription can be increased during the
term and will co-terminate on the anniversary date. However, licenses acquired
in an annual subscription cannot be decreased during the term.

For Example

If you have 100 employees, each of whom utilizes a Microsoft 365 Business
Premium license, you can utilize an annual term to avoid paying the 20% premium
for a month-to-month term that will begin in July. However, if the number of
employees requiring a Microsoft 365 Business Premium license regularly
fluctuates between 75 and 110, you might end up paying for licenses on annual
contracts for employees that are only there for a couple of months. A better way
to optimize your licenses might be to purchase 75 licenses on an annual term and
supplement that with monthly term licenses for employees that fluctuate.

 

Scenarios like this may be familiar to businesses that have temporary employees,
seasonal workers, or high employee turnover.


LET US HELP YOU SAVE MONEY



If your company is utilizing Microsoft licensing, it is almost certain that one
or both of these changes will impact you, and it is important to review your
licensing options now to minimize their financial impact in the near future.
Summit Technology can review your organization’s licensing needs determine the
best path forward including locking in your license price before these pricing
changes take effect.

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TESTIMONIALS

We've been customers of Summit Technology for the past 3 years, during which
they have worked diligently with us to meet our organization's needs. As a
non-profit organization, it's crucial for the Utah Film Center's continuing
success to be able to work with reliable, consistent, and supportive service
providers. Summit Technology certainly fits that bill...

Patrick Hubley
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The experience we've encountered with Summit Technology has been nothing short
of amazing. Marketstar had some curveballs come along the way with our
build-out, and Summit took them in stride as if they were already part of the
project. Very patient, professional, and accommodating with all our company
wants and needs. This goes with the network, planning, security cameras, etc...
Great folks to do business with...

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The advice, service, and support that we have received from Dave and his team at
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assisted with every aspect of our technology for several years. When we have a
project that falls outside of their skill set they even assist us in working
with their competitors to ensure that our business goals are achieved...

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OUR PHILOSOPHY




SIMPLE.

Good technology makes our lives easier, but that doesn't always mean it is easy
to use. We use our expertise to make sure the technology that makes your life
easy is simple - simple to adopt and simple to understand.

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CONVENIENT.

Like you, we know that it can be frustrating to not have access to everything
you need for work whenever or wherever you need it! We believe in using cloud
based tools that offer secure, convenient accessibility - whether your at your
desk or on the other side of the world.

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SECURE.

We invest time and resources into education and research to become experts in
cyber security. We believe in multi-layered, custom tailored solutions that are
built on secure, cloud-based technologies. We scrupulously protect our own data
so we can help you protect yours.

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