Annual Commitment of Microsoft Office 365 subscription
An annual commitment of a Microsoft 365 subscription can be an ideal solution for businesses that have a stable number of users. For those with an annual commitment, the monthly bill will vary depending on the number of users each month. In comparison to a month-by-month plan wherein businesses get charged for the maximum possible number of users every month even if they do not use these services.
However, there are also some downsides to consider with an annual commitment. They must pay for the licenses they subscribed to even when they have not used them all, especially when adding or removing users during the year. Additionally, without paying extra costs, businesses cannot upgrade to new office versions in case Microsoft releases them during their commitments.
Before making an annual commitment to Microsoft 365, think about these:
Pros
- Save money: With an annual commitment you can lock in a lower price per user than you could achieve under a flexible monthly plan.
- Predictable budgeting: Annual commitment can help you more easily budget your software costs.
- Guaranteed access: With an annual commitment, you are guaranteed access to Microsoft 365 for the entire year.
Cons
- Less flexibility: You can only pay for a certain number of licenses based on your annual commitment even though you don’t require using all of them.
- Higher Initial Purchase Price: An annual commitment requires payment of more money at the beginning compared to a flexible monthly plan.
In general, whether or not a business should go for an annual commitment depends on their specific requirements. Companies that have a consistent number of users and are unlikely to add or remove people throughout the year may gain from this kind of agreement. In contrast, organizations which experience variations in personnel from time to time or would like flexibility in upgrading their office software as soon as new versions come available could choose a month-to-month option instead.
Summary
With Microsoft Office 365, businesses get access to an extensive range of productivity tools that cater for all possible needs. However, choosing the best subscription package largely depends on what you want out of the service provider. For small enterprises with a stable user base and budget predictability being instrumental, they could consider making an annual commitment.
For many small enterprises, USAT Inc. is an expert in using technology to make things easier and more cost-effective. Do you need to know if it’s a good idea for your company to go for an annual commitment or not? Our IT consultants can determine your software requirements and suggest the most suitable Office 365 plan for your business. For more information on how our company will help yours grow, contact USAT Inc. today!
Disclaimer: The information provided in this blog is as of 02 April 2024 and it could be different at the time of reading this article.