Attention! Microsoft is changing its subscription rates
Attention! How to avoid the rate increase starting April 1st. Change in Microsoft subscriptions.
As we announced before the end of 2024, Microsoft will make a significant change to its licensing model starting April 1st. All deferred payment subscriptions renewed after April 1st will increase in price by 5%. At Dynasoft, we have prepared a brief guide to understand this change and, more importantly, to avoid the increase.
WHAT DOES THE CHANGE CONSIST OF?
First of all, let's go over the basic concepts:
Commitment: Microsoft offers different prices depending on the subscription duration. We have three options: monthly, annual, or triennial.
• The commitment is automatically renewed by default.
• We have a 7-day window from the commitment acquisition date to make negative adjustments.
• The commitment is bidirectional; Microsoft agrees not to raise the price until the renewal date.
Payment: For annual and triennial commitments, Microsoft offers the possibility to defer payments or pay them on the renewal date. In this table, we describe the available options:
To identify the type of subscription, you have several options:
Dynasoft Customer Portal: in the subscriptions section, you can see the details of all subscribed licenses, the renewal date, and the type of commitment and payment.
Subscription Invoice: our invoice does not show as much information, but we do indicate the commitment (NCE Term) and the payment method (billing cycle).
Due to price and ease of payment, the Annual – Monthly option is the most common.
HOW DOES THE INCREASE AFFECT?
The increase will apply to all subscriptions with annual (or triennial) commitment and deferred payment that are renewed from April 1st:
IMPORTANT: If a subscription is renewed on March 25, 2025, the price increase will apply starting March 26, 2026. That is, the increase will be applied gradually as commitments expire from April 1st.
HOW TO AVOID THE INCREASE?
Very simple, the solution is to switch subscriptions to ANNUAL – ANNUAL and not defer payment, that is, pay the full subscription on the renewal date.
As you can imagine, this option requires proper analysis, as it can seriously affect cash flow.
At Dynasoft, to facilitate payment, we will invoice the amount at the end of the month with a 30-day due date, giving you a 60-day margin.
DYNASOFT COMMITMENT?
At Dynasoft Group, we always seek the most convenient licensing option for you. We know how important financial planning is and want to help you find the best solution for your licensing needs.
Therefore, we have prepared a plan to contact each of you before the renewal date to inform you of which subscriptions are renewing within a month and help you make the best decision for your organization.
If you have any questions or need help, do not hesitate to contact us. We appreciate your trust and are here to help you with everything you need.
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