While I covered this story previously, its broken on mainstream sites such as CNBC, Protocol and IT Pro.
Microsoft’s push to raise prices with the New Commerce Experience for Office, or NCE, is a 20% raise in prices if a customer does not elect for a longer subscription. The IT Pro article focuses specifically on the hit to MSPs.
While we’re talking Microsoft 365 pricing, the company is offering customers who use pirated versions of the software 50% on subscriptions to switch to a genuine version. The message is sent to users if Microsoft detects the installed version is non-genuine.
This round of mainstream coverage increases the likelihood of customer awareness if you hadn’t already prepared your customers for this increase.
I don’t anticipate Microsoft will change direction on this plan. That doesn’t mean if a provider objects they shouldn’t express themselves. It’s more a statement on Microsoft’s approach, which is not exclusive to them. Higher prices for flexibility, better prices with a commitment.
I found Microsoft’s appeal to software pirates intriguing too – they clearly believe there’s enough reason to try, and likely enough upside to justify the efforts.
For me, there are pricing lessons here rather than reasons to be upset.