Microsoft has told its partners that some customers will be charged 20% more for subscriptions to its Office suite if they want to have monthly plans, CNBC reported Monday.
The company has not announced specifics of its price changes, but Microsoft clearly wants to move its massive Office customer base to annual subscriptions. The move comes as part of the debut of its New Commerce Experience for Office, an overhaul of the way its software is purchased through business partners, which will begin in 2022.
Microsoft customers who buy services through its Cloud Solution Provider program will be subject to the pricing model change. The company does not disclose exactly how many of its customers buy products through the program, but partners generate an enormous amount of its commercial revenue.
The changes could reduce the month-to-month subscriber loss for the company. But some of its business partners have spoken out against the price hike — one Change.org petition started by Axiom Tech has garnered more than 1,400 signatures.
"We recognize Month to Month subscriptions are invaluable to our clients as they allow flexibility to increase or decrease license counts based on their needs," the petition states.
Microsoft previously announced a separate price raise for 365 bundles in August, which will up costs by by 8.5% to 20% per user starting in March 2022.