You may recall from our alert in July, Microsoft has substantial changes to their pricing due to take effect October 1, 2018. This pricing will cascade globally from Redmond product managers. As a result, we anticipate an incredibly busy September as customers try to understand what the impact will be and how best to optimize their agreements. The actual pricing is due to be available to resellers on September 1, 2018 and will likely become widely available soon after.
In addition to the changes we previously communicated (see below), here are a few of the latest updates that have come to our attention:
- “Level A” is going away. Any Microsoft customer with less than 1,500 pc’s / users, will pay retail rates (“Open”).
- All products in the “Office” family, a large brand umbrella including SharePoint, Exchange, 365, and more, are going up at least 10% - Translation: It will be way MORE than 10%.
- There will be an accelerated push of Microsoft’s smaller customers away from EA and toward the CSP (Cloud Solution Provider) contract model. The CSP version only offers cloud SKUs – no on premise or perpetual licenses offered.
- On September 1, 2018 – Immediately secure the pricing updates and review for impact.
- Prepare for an early renewal – regardless of your current end date. If your renewal is Q1 or Q2 2019 - don't wait until then to talk to us, the time to start is now.
- Contact us for immediate assistance on either of the above and or questions on the pricing update, and how best to optimize your deployments.
Changes from our last alert (July 2018):
- Establishing a single, consistent starting price across all programs aligned to web direct for online services (OLS)
- Removing the programmatic volume discounts (Level A and Open Level C) in Enterprise Agreement (EA)/EA Subscription, MPSA, Select/ Select Plus, and Open programs (Open, Open Value, Open Value Subscription)
- Aligning government pricing for on-premises and online services to the lowest commercial price in EA/EAS, MPSA, Select Plus, and Open Programs
- Delivering a newly designed Customer Price Sheet that better outlines how a customer’s price was derived (direct EA/EAS only)
- Office 2019 commercial prices will increase 10 percent over current on-premises pricing
- The price increase will include Office client, Enterprise CAL, Core CAL, and server products
- Windows 10 Enterprise E3 offers will be renamed:
- E3 will now refer to the per user offer only
- Windows 10 Enterprise E3 per User becomes Windows 10 Enterprise E3
- Windows 10 Enterprise E3 per Device becomes Windows 10 Enterprise
- The price of Windows 10 Enterprise will be raised to match the price of Windows 10 Enterprise E3
- Windows 10 Enterprise E5 per device will be discontinued
Celebrating 15 years, NET(net) is the world’s leading IT Investment Optimization firm, helping clients find, get and keep more economic and strategic value. With over 2,500 clients around the world in nearly all industries and geographies, and with the experience of over 25,000 field engagements with over 250 technology suppliers in XaaS, Cloud, Hardware, Software, Services, Healthcare, Outsourcing, Infrastructure, Telecommunications, and other areas of IT spend, resulting in incremental client captured value in excess of $250 billion since 2002. NET(net) has the expertise you need, the experience you want, and the performance you demand. Contact us today at email@example.com, visit us online at www.netnetweb.com, or call us at +1-866-2-NET-net to see if we can help you capture more value in your IT investments, agreements, and relationships.
NET(net)’s Website/Blogs/Articles and other content is subject to NET(net)’s legal terms offered for general information purposes only, and while NET(net) may offer views and opinions regarding the subject matter, such views and opinions are not intended to malign or disparage any other company or other individual or group.