This article provides answers to frequently asked questions related to 1 September 2023 pricing increase for Microsoft 365 services.
Q: Why is the pricing increasing on 1 September 2023?
To adjust for local currency fluctuations and to more closely align Microsoft Cloud Services to global levels and software pricing within the region, Microsoft is announcing price list changes for the following currencies: Australian dollar (AUD), New Zealand dollar (NZD), Canadian dollar (CAD), and Swiss franc (CHF). This announcement will affect our Australian customers transacting in AUD.
What’s the impact to my bill?
Microsoft has indicated that the 1 September 2023 pricing update will see an approximately 9% increase in Microsoft 365 licenses for all contract types (monthly, annual, and 12-monthly). Percentage changes on individual licences may vary due to pricing calculations, rounding rules and to align with Microsoft Cloud Services pricing.
A copy of the updated price guide will be available on our pricing page from 15 August 2023.
Is this a one-time fee adjustment?
No, Microsoft may adjust their fees to us bi-annually, in February and September every year to meet global pricing parity subject to market conditions. If we update our Microsoft Cloud Services pricing, we'll give you a minimum of 30 days’ notice on any future pricing adjustments.
Will this change any monthly product pricing adjustments?
No, Microsoft will still publish monthly CSP rate card updates with potential product pricing adjustments which we may pass through.
What services are impacted by this fee increase?
All Telstra CSP Microsoft 365 services will be impacted by this fee adjustment. This includes new commerce experience (NCE) and Legacy services that we currently offer via Telstra Apps Marketplace (TAM).
How does this impact my existing subscription management?
The fee structure for annual and 12 monthly subscriptions offers price protection for existing subscription terms in both legacy and NCE constructs. Throughout the subscription term, the pricing remains unchanged at the original billing price.
When it comes to adding additional seats (user licenses) to an existing subscription (for subscriptions active prior to 1 September 2023), the seats will be billed at the original price.
However, subscriptions that are auto-renewed, upgraded (e.g. E3 to E5) or newly purchased on or after 1 September 2023, will be subject to the new price list, which includes the price adjustment.
Will this impact Not-for-profit (NFP) licenses?
Yes, Microsoft has taken a unified approach to the price adjustment which will be equal for all categories of commercial and public sector customers, including non-profit organisations.
How can I minimise the impact from this price adjustment?
You may want to investigate moving some or all your subscriptions to longer term subscriptions to secure the current fees before the rise occurs on 1 September 2023.
If you are on a monthly term and wish to secure a lower fee before the price increases, you may want to move your NCE subscriptions under an annual term during the monthly renewal period before this date. NCE annual subscriptions have a 12-month commitment and licence numbers can only be reduced during the renewal window. The terms and conditions can be found here.
If you are a customer using Microsoft Office E1 or E3 with no previous history of purchasing Microsoft E3, then you might benefit by moving these licenses to Microsoft E3 utilizing the current “Do More with Less” promotion offering 15% off on Microsoft E3 licenses.
Will this update have any commercial impact on my Azure services?
Your Azure services are currently billed taking the FX adjustment into account, and there won’t be any pricing adjustments related to this announcement on your Azure services.
Who can I reach out to obtain more information and assistance?
If you need more information or assistance, please contact your Telstra representative, or email our support team on TAMServiceDesk@team.telstra.com. Alternatively, you can contact them on 1800 878 483 option 4 & 1 during business hours.