True to their usual schedule, Microsoft has announced some substantial changes to their pricing policies, along with some price increases to Office and Windows licenses / subscriptions, to be effective October 2018.
There are some significant changes hidden in Microsoft’s bland language – most notably “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)” - which will in effect cause substantial price increases for the majority of small and medium businesses with fewer than 2,400 PCs/users.
Some of the October pricing changes include:
- 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)
In conjunction with the programmatic pricing changes, several changes to our (Microsoft) product pricing will be delivered, including:
- 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
Per Microsoft: Each of these changes will be reflected on the October 2018 price lists, with preview on the September 2018 price list.
If you have upcoming Microsoft contract renewals or are planning significant purchases After September 2018, please contact NET(net) for help in analyzing and managing these cost increases.
Microsoft FAQs on the pricing update:
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