Office 365 Archives – Buying & Selling Disused Microsoft Software Licences Since 2004

Microsoft Price Increases and Important Changes To The Way SMEs Purchase M365 Licensing

Microsoft Price Increases and Important Changes To The Way SMEs Purchase M365 Licensing

 

If you’ve been keeping an eye on Microsoft news lately, and there’s been quite a lot of it, you may have read about some key up and coming price changes but may not have heard about the changes in the way SMEs purchase their Microsoft subscriptions. In short, prices are going up and, with it, plan flexibility is… well, less flexible (unless you are happy paying a premium).

Along with the price increases, if SMEs want to continue to have the flexibility to decrease the number of subscriptions they have other than at renewal, they will need to pay more and give up price protection. Also, the option to be able to move to another provider between renewals is about to be curtailed. And last but not least, resellers are now about to become liable for the cost of an annual subscription – which means paying monthly may be about to disappear too for products requiring an annual commitment, as a way to protect themselves from potential bad debt situations.

 

Take a look at our breakdown of changes with Microsoft pricing and purchase conditions:

  • Dec 2021 – Microsoft retired their Open Volume Licensing programme primarily used by SMEs;
  • SMEs now purchase perpetual software licences through Microsoft’s Cloud Solution Provider (CSP) programme;
  • From early March, this programme will be phased out for what Microsoft are calling their ‘New Commerce Experience’ or NCE.
  • From March 2022, six key M365 subscriptions will see price increases of approximately:-
    • Office 365 E5 (+9%)
    • Microsoft 365 E3 (+13%)
    • Office 365 E3 (+15%)
    • Office 365 E1 (+25%)
    • Microsoft 365 Business Premium (+10%)
    • Microsoft 365 Business Basic (+20%)
  • Existing CSP customers will be able to renew their licensing on this programme until July 2022; from mid-March, new customers will have to purchase via NCE;
  • Both NCE Annual and CSP are 12-month subscriptions with prices locked for that period;
  • CSP allowed customers to amend subscriptions up or down, even to zero – pro-rated cancelation at any time;
  • If customers want this flexibility with NCE, there will be a 20% price premium with no price protection;
  • Reductions with NCE monthly can only be implemented every 30 days (no pro-rated refunds);
  • Prices for NCE monthly are only locked for one month so could be subject to multiple increases over 12 months;
  • CSP allowed customers to cancel and move to another direct provider at any time;
  • NCE Annual cannot be cancelled after 72 hours from order placement so customers will not be able to change an indirect provider until renewal;
  • Because resellers are now fully liable for the cost of the annual subscription, they may decide not to offer monthly payments for annual commitment products.

Quite the headache, isn’t it? Luckily, there is another way.

 

At Discount-Licensing, we buy and sell pre-owned, perpetual software licenses for Microsoft products as well as offering new licensing. That means single payment, so a fixed cost with no surprise price hikes – you simply use what you’ve purchased for as long as you like. What you buy is now yours forever, or until you decide to sell it on. Preowned perpetual software licences allow you to fix and control your costs at competitive prices, even when compared against subscription.

 

Contact us at sales@discount-licensing.com or call us on +44 (0)1283 511524 to find out more on how you can save money with perpetual Microsoft software licenses.

 

 

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Long Live Perpetual Microsoft Office Licensing!

Long Live Perpetual Microsoft Office Licensing!

 

If you’ve been keeping up with industry reports, you might be forgiven for thinking Office 19 is about to disappear altogether. The reality, however, is that perpetual Office licensing (i.e. pay for once then use for as long as you want) isn’t going anywhere just yet, even though Microsoft would happily stop selling it in a heartbeat.

Download our FREE comparison guide to Microsoft Office 2019 Vs Office 2016!

Why Doesn’t Microsoft Like Perpetual Office?

Quite simply because they have a more profitable option they’d like people to use instead – namely Office 365. Office 365 is a subscription service, whereby rather than paying for a software license just once, you pay monthly for the privilege of using it. This is definitely a better option as far as Microsoft is concerned because it turns occasional customers into regular monthly subscribers – but what about the users?

The reality is that owning your software licensing outright still makes much better financial sense, no matter the implementation.

So, Is Perpetual Office Licensing Going To Go Away?

No, certainly not yet. Despite Microsoft heavily promoting Office 365 and not really wanting to sell perpetual Office licensing, it is far too popular to simply stop supporting it and offering it, (though if you speak to one of their resellers, they will probably only want to talk subscription) having already confirmed that the new version due out later this year will be available to own outright.

Why don’t users want to use Office 365? Mainly because it’s actually a lot more expensive in the long run. Subscription models offer a compelling proposition by seeming much more accessibly priced in the short term, and indeed they are. But most users don’t use software for just two months – software becomes a part of the way the business operates and is often in use for years. Over that time period, the subscription cost eclipses the outright purchase price considerably.

Then there’s the ongoing security of the cloud to consider; Microsoft is one of the biggest software providers in the world so is a magnet for data thieves and hackers to constantly attempt to break down their defences. Many business owners prefer the prospect of handling their own data security internally, and on-premises software allows a much easier path to that. Your data and documents are stored on your premises, rather than on a server somewhere you don’t even know.

The Future Is Still Bright For Office

That means Office Standard and Professional Plus, as well as other on-premises software, are still highly popular and will continue to be so for a long time yet to come. Browse the range at Discount Licensing today, to make even more savings against the cost of buying brand new software licences, with costs very favourable compared to many of the subscription plans. A cost comparison between Office 365 and pre-owned licensing is available to download from Discount-Licensing’s website.

Microsoft Proves The Continuing Popularity Of Perpetual Licences

Microsoft Proves The Continuing Popularity Of Perpetual Licences

 

 

Recently Microsoft have confirmed they will be providing a new on-site/perpetual version of their ever-popular Office platform. Given the company has made concerted efforts to push users into a more subscription-based model, what does this announcement mean for the current and future state of perpetual software licences?

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Perpetual Licence Or Subscription – What’s The Difference?

First, to lay the groundwork, a perpetual licence is one that you essentially pay for once and then you own the rights to use that piece of software. So you bought an Office licence, and that would grant you the freedom to install it on a set number of machines, at which point you could use it for the life of the machine. The software becomes an asset that you own with no further fees to pay in the future and potentially be sold off when no longer required.

A subscription (or rented) model, as with anything else, nominally seeks to make things more flexible by allowing you to pay an ongoing monthly fee for your software usage, rather than “buying” the licence. Instead of being a periodical Capex, it becomes on ongoing operational expenditure.

What Does Microsoft’s Announcement Actually Mean?

Microsoft is a company that is not going to release a product for which there is no market. The fact that they have specifically provided a perpetual licence version of the new Office platform means by default that there is a market for it. A market that prefers the prospect of buying the licence and owning that software.

Why Would An Organisation Prefer Perpetual Licensing Over Subscription?

None of this is to say that the subscription model doesn’t have its benefits. If pure costs are a concern for you, you might find it more affordable in the short term to budget a subscription payment. It also means that you can ensure that you’re always going to have access to the latest versions and features of Office.

The issue is that if you intend to use a piece of software long term, you can actually do it more cost-effectively by owning the licence outright. This allows organisations to fix the cost of its software for several years. It’s also worth noting that new software needs to be gotten used to – constantly having new features and layouts to integrate into yours and your employees’ workflow can damage efficiency.

In time there is no doubt that Microsoft wants users on a subscription model. Nevertheless, it’s what the users want that matters, however, and Microsoft must serve those needs. For the time being at least, it seems the perpetual licence model is not going anywhere – and when you think hard about the benefits, it’s no surprise why.

If your organisation would rather own its software, talk to Discount-Licensing. For a single payment at a price comparable or less than the cost of an annual Office subscription, you can purchase a pre-owned perpetual Microsoft Office licence from Discount-Licensing, giving you back control of software expenditure. If you would like to know more about purchasing software assets for less, get in touch with our team.

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Looking to Replace Office 2010? (Benefits of Choosing Perpetual Software Licences)

Looking to Replace Office 2010? (Benefits of Choosing Perpetual Software Licences)

 

 

With Microsoft ending extended product support for Office 2010 in October, organisations that are still using this version may believe their only migration path is to the subscription based Office365. Nevertheless, there is a more cost-effective solution that most conventional Microsoft Resellers don’t talk about: pre-owned perpetual licensing. This option can provide a more up-to-date Office suite for only slightly more than an annual Office 365 subscription.

Download our FREE comparison guide to Microsoft Office 2019 Vs Office 2016!

Though Office365 is a powerful tool with lots of great features, most users will only actually use a small percentage of the full capability of the software suite. This will be especially true for organisations who have been generally happy using older Office suites, getting full value from their software investment but are migrating because of concerns about lack of support rather than an operational requirement to move to a newer version. The other problem these organisations face is that by moving to subscription licensing, rather than the periodical capex for software, there will be a rise in the annual operational costs for IT. Yes, the initial costs are less than owning your software, but this expenditure will be repeated year-on-year. If an organisation in the past would use the same Office suite for 5 years or more, moving to a subscription will be a massive increase in costs over the same period. Most of us would agree that over time, as a rule, it is more cost effective to own than rent.

 

Microsoft still offer perpetual versions (one-time purchase) of the Office suite even if conventional resellers might lead us to believe otherwise. With the basic subscription Microsoft 365 Apps for Business costing around £94.80 per user/per year, on the face of it, the price is attractive against the one-time purchase price of £249.99 for Office Home & Business. However, in less than 3 years, the cost of the subscription exceeds the cost of the one-time payment version so for an organisation that previously used an Office suite for 6 or more years, their expenditure on software is more than doubling. That is also assuming the software manufacturer doesn’t increase their prices during that period. Yes, by renting your software, you always have the most up-to-date version with all the latest features but does this increased spending translate to such an improved bottom line it more than offsets the additional expense? Probably not.

 

For many businesses, 2020 has been a tough trading year so being able to stay with a software product that users are familiar with for a much lower outlay is very attractive, even if the organisation would prefer to own their asset. This is where pre-owned licensing can offer a real cost-effective alternative. For a lot less than the cost of 2 years subscription to the basic Microsoft 365 package, organisations can own a perpetual copy of Office 2019 from Discount-Licensing. Greater savings can be made by purchasing the excellent Office 2016, which will still be in extended support until October 2025. Finance options are also available if there is a need to spread the cost.

 

If your organisation is looking to replace its Office Suite, Microsoft will steer you towards one of their subscription offerings, trying to seduce you with all its bells and whistles but will it give enough of the return on investment it needs to, given the increasing annual outlay especially when most users probably only need a fraction of its capability. Pre-owned software from a reputable supplier like Discount-Licensing can offer a cost-effective alternative to rental. Subscription licensing is good for Microsoft’s business but is it good for yours?

 

Before you Move to Office 365, Sell your Unused Software Licences

Before you Move to Office 365, Sell your Unused Software Licences

 


As an IT manager, you are always under pressure to deliver more capability, greater speeds, and less downtime across your network, which means keeping up with the latest technology. But with software manufacturers moving their customers to a subscription model, your latest upgrade often lies in the cloud with products like Office 365, AZURE, or AWS, leaving you with your old on premise licences that you no longer need. In the past, these were money down the drain, but what if you could recoup some of the first year of your new subscription fees by selling your now redundant, old software? With Discount Licensing, you can!

New for Old

Maybe you haven’t had time to give them any further thought, maybe you assumed your old licences were worthless, or maybe you keep old licences around just in case – there are many reasons for holding onto licences you no longer use. Because you can’t physically see them, unlike old boxes that get in the way, it’s easy to forget that you’ve still got them hanging around. But these software licences that you accumulate over the years represent a source of cash that’s going to waste until you get in touch with us! We can conduct free remote audits to establish your full licensing estate so you can see if you do have any that can be sold on; then we give you a great price that will allow you to invest even more in the next generation. Our valuations are completely free and no obligation, and for this tiny amount of work you can make a huge difference to your department’s budget.

Recycle Old Software

The release of newer software editions means the countdown to the End Of Support date gets closer, when new patches and security updates stop being released, and interest in older licences almost totally diminishes. Ensure that you can recoup some of your costs and get in touch to find out how much your old software might be worth. In the current economic climate, we’re sure any additional revenue that can be generated for your business will be gratefully received.

Get in Touch

If you have surplus software and you’d like to recover some of its value to spend on new products, you can fill in our quick and easy form that will help us get back to you with an offer. Alternatively, to get started, call (0)1283 511524 or drop us an email at procurement@discount-licensing.com.

 

Microsoft struggles against self-inflicted Office 365 IMAP outage

Microsoft struggles against self-inflicted Office 365 IMAP outage

Seven days is a long time in cloud

Microsoft engineers are struggling to fix a seven-day-old, self-inflicted Office 365 IMAP outage. Find out more here.