Big Microsoft Licensing changes as of October 1, 2018

Earlier we announced some 10% price increase on various Microsoft volume licensing products. With the release of the October 2018 Price List Guide we now know that more changes are ahead. In this article we present you the highlights. Please note that this overview is not complete, there are just too many changes to tell. Please contact a Quexcel licensing specialist with your specific request and we will guide you.

Office 2019
Per October the Office 2016 will be discontinued and Office 2019 Applications for desktops will be introduced. The corresponding Office Servers (and CALs), such as Exchange Server, Skype for Business Server and SharePoint Server will be launched in November.
All new products will be introduced with a 10% price increase compared to the 2016 editions, in all Volume Licensing Agreements (except Education).
Good to know, Office 2019 desktop applications for PC will only work on the Windows 10 operating system!

Windows Server 2019
Also in October Microsoft will introduce Windows Server 2019 and discontinue the 2016 editions. With the introduction of Windows Server 2019 Standard and Datacenter also the related products will be updated, such as the Windows Server Client Access License (CAL), Remote Desktop Services CAL, Rights Management CAL, Core CAL Suite and Enterprise CAL Suite (for Volume Licensing Agreements based on standardization), various Bridge CALs (for hybrid cloud scenario’s), the External Connector and more.
All new products will be introduced with a 10% price increase compared to the 2016 editions, in all Volume Licensing Agreements (except Education).

New Windows Enterprise LTSC
Organizations which need ‘long term’ updates for their Windows desktop operating system can – as of October – choose the new Windows 10 Enterprise LTSC (long term servicing channel) 2019 edition per device. This Windows 10 Enterprise edition is ‘device’ edition only.
Important: the ‘regular’ Windows 10 Enterprise per device will receive a price increase of around 32% (you’ve read it correct, + 1/3!).

Small price increase for cloud services
Various cloud services will get a price increase of ‘around’ 1% per October 2018. The following products are impacted:
• Microsoft 365 and Office 365 E3/E5
• Enterprise Mobility + Security E3/E5
• Exchange Online
• Dynamics 365

BizTalk Server, SQL Server Standard Core and SQL Server Enterprise Core will also receive a 1% price increase per October 2018.

Which programs and license types?
To be short, all volume licensing programs will be impacted, accept the Campus (Enrollment for Education) and School Agreement. Price increases will be applied to licenses, licenses with Software Assurance attached (so called L+SA), Software Assurance (renewal) and SA Step-up licenses.
These programs will be impacted:
• Enterprise Agreement (also including removal level A discount)
• Enterprise Subscription (also including removal level A discount)
• Microsoft Products and Services Agreement (MPSA)
• Open License
• Open Value (also including removal level C discount)
• Open Value Subscription (also including removal level C discount)
• Vendor (ISV) Royalty

We can imagine. For those of you who do not have a daily job in licensing it all may be a bit confusing. Again, please do contact one of our consultants; it is our day-2-day job and we would love to help you make smart decisions.

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