Gartner Research

Expect Price Increases in Office 365, Unless Caps Are Negotiated

Published: 29 June 2016

ID: G00308737

Analyst(s): Michael Silver , Marie Sienkowski


Unless they can renegotiate renewal caps, end-user computing and procurement managers can expect cost increases at each Office 365 renewal, due to lost discounts. If they can't renegotiate, then licensing and other costs should be modeled over a six- to nine-year period to analyze long-term effects.

Table Of Contents


  • Microsoft's Office 365 Revenue Trade-off
  • Modeling the Change in Spending From Traditional Office and On-Premises Client Access Licenses to an Office 365 Plan
    • Assumptions for All Scenarios
    • General Findings
    • Example 1. Traditional/On-Premises Versus Office 365 E3 FSA
    • Example 2. Traditional/On-Premises Versus Office 365 E3, but the "From SA" Pricing Will Only Be Available During the First Two Terms
    • Example 3. Traditional/On-Premises Versus 365 E3, 20% More Qualified Devices Than Users
    • Example 4. Traditional/On-Premises Versus Office 365 E3 for 80% of Users and E1 for 20% of Users
  • Other Options: An Office "Vacation"?

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