Month: May 2022

No matter what your business does, some portion of your workforce needs a productivity and collaboration suite to get work done. This key suite of tools used to be called an office suite (with Microsoft Office as the undisputed king of the market.

But in the last decade or so, the “office suite” category has evolved into something much more powerful and wide-ranging.

In this timeframe, cloud services have steadily taken over and office-oriented businesses have both enjoyed and demanded more and more collaborative capabilities. Google Suite came along, eventually expanding and evolving into Google Workspace. And Microsoft Office had its own explosion of functionality and added tools, evolving into Microsoft 365.

Today, most businesses need an office, productivity, and collaboration platform. And the vast majority settle on either Microsoft 365 or Google Workspace.

Both ecosystems are powerful, robust, and feature-rich. Yet there are countless differences between the two, as well.

In this guide, we’ll walk you through the biggest differences across six categories:

• Cybersecurity and support
• Productivity and collaboration
• Cloud storage
• Ease of use
• Administration
• Pricing

Ultimately our goal is to help you decide which environment is right for your business. And once you decide, we’re ready and willing to help you set up your platform, set governance and policy, and educate your team on how to use the various tools within your chosen platform. Just reach out today to start that process.

For now, though, we’ll start with the basics.

Getting to Know Microsoft 365 and Google Workspace

Microsoft 365 is the evolution of Office and Office 365, containing the Office apps you know and love like Microsoft Word, Excel, Outlook, PowerPoint, OneDrive, and Exchange. It also contains powerful newer tools like Teams (an impressive collaborative tool that looks something like if Slack and Office had a baby) and SharePoint, and an army of smaller tools that add additional incremental value for some organizations.

Google Workspace, on the other hand, is the evolution of G Suite and is Google’s attempt at creating a cloud-first rival to Microsoft 365/Office. It contains parallel products for all the core Office apps, including Docs, Sheets, Slides, Keep, Drive, and Calendar. To rival Teams and SharePoint, Google has Meet and Sites.

Generally speaking, you can do most of the same things on either platform. But they all work just a little differently, and not every app is equal in quality. Google generally offers more lightweight, streamlined apps, while Microsoft offers deeper functionality and formatting (but a busier interface).

One major difference: Google’s suite is cloud-first (and mostly cloud-only). There is no desktop Docs app. The same goes for Sheets, Slides, and even Gmail. You also aren’t saving your Docs files to the network—everything lives in the cloud, usually with no clear file structure. All this enables much greater flexibility, but it can be limiting, too.

In the past five years or so, Microsoft has rolled out web-based versions of all its major tools, too. And it has heavily invested in building out a robust, mature cloud-based experience, with conditional access policies, SharePoint share permissions, MFA, folder sync, and the ability to work on any device. On this front, Microsoft has the edge because you can operate in the cloud and use browser-based versions of all its major tools, but you can also operate locally with heavier-duty desktop and mobile apps.

Cybersecurity and Support Differences

Both platforms are produced and maintained by industry titans, so in terms of basic cybersecurity, you’re very well protected either way. Both companies offer:

• Enterprise-grade encryption
• Their version of cloud security
• Data loss prevention
• 2FA
• Spam and malware prevention tools
• 99.9% uptime or availability guarantees

There are some differences you should be aware of, though.

Microsoft 365

Microsoft 365 offers 24-hour support for all plans and much more robust support for multi-factor (not just two-factor) authentication.

Also, while all 365 accounts come with standard cloud security, Microsoft’s more advanced security package (Microsoft Defender for Business, Advanced security, and Cyberthreat protection) is reserved for higher priced Microsoft 365 Business Premium tier.

Google Workspace

Google similarly offers a tiered approach to security features, offering standard security and management controls at Business Starter and Business Standard. Business Plus adds enhanced security, including Vault and advanced endpoint management.

Google’s support is weaker than Microsoft’s: all account types include just standard support, which isn’t 24/7. Google requires customers to pay to upgrade to enhanced support.

Productivity and Collaboration Differences

Both office suites offer a wide range of productivity and collaboration enhancements, and quite a lot is at least somewhat similar. The two brands will regularly innovate a new feature, only to see the other company bring out a very similar feature in the next release.

Both Microsoft 365 and Google Workspace allow for live co-authoring and editing of documents across the major productivity apps (Word/Docs, Excel/Sheets, and PowerPoint/Slides). Google has offered this longer, and its version of this tech is simpler and more stable — but as long as your Microsoft 365 and network environments are properly configured, you won’t notice any issues on the Microsoft side.

Microsoft 365

Microsoft’s main productivity and collaboration apps are available as desktop, mobile, and web apps. Some smaller and less mainstream apps aren’t represented across all three, but even with these less popular apps, Microsoft generally offers a version on whichever devices they make sense.

Microsoft 365’s wider app availability and its ability to integrate with Windows, OneDrive, and network infrastructure leads to a tighter ecosystem as well. Users can share a file in Teams, which another coworker can seamlessly open with Word and then send as an email — no awkward browser tab switching required. Because Google relies so heavily on the browser, the integration between apps just isn’t as tight.

On the collaboration and communication front, Microsoft has a kitchen sink’s worth of tools. The flagship is a relatively new app called Microsoft Teams, and it’s an absolute powerhouse. There are plenty of others with more focused uses, including Yammer. And, of course, there’s desktop-class Outlook, the de facto standard in standalone email applications.

Google Workspace

Google’s productivity and collaboration apps all run in your browser or in a dedicated mobile app. As a result, they tend to be lighter weight and highly streamlined. But there are times where running three or four Google apps in browser tabs just doesn’t work as well or feel the same as having two Word documents, an Excel spreadsheet, and Outlook open concurrently on your desktop.

As far as communication tools go, Google offers a handful of tools as well. Its alternative to Teams is Meet. While Meet is adequate as a videoconferencing tool, its capabilities don’t come close to what Teams can do.

Google doesn’t offer an alternative to Outlook. Instead, you’re expected to use Gmail in your browser. If you love the Gmail interface you’re using at home and wish your business email looked just like it, then Google Workspace delivers. But in our experience, most business users don’t want that at all. The ones who do opt for Google Workspace tend to do so in spite of the shortcomings of the Gmail interface.

Cloud Storage

Both suites are cloud-oriented and include cloud storage for every user, but there are differences between the various plans. Crucially, both platforms offer cloud redundancy (when you use Microsoft 365 as a cloud-first solution rather than as an on-premises one, at least). This means that your files are constantly synced to the cloud. Even if the primary cloud server the files live on goes belly up, redundancy means you retain access.

Microsoft 365

All business plans include 1 TB of OneDrive storage for each user. All except the Apps for business plan include file syncing across devices, secure sharing and permission-based email, and access or guest links for external recipients.

Google Workspace

Google’s three tiers cap storage per user at 30 GB, 2 TB, and 5 TB respectively. The Starter plan omits shared drives for your team and target audience sharing, two features that the pricier plans include.

Here again, Microsoft’s cloud storage and sharing are more nuanced and offer more options. But Google’s solution is plenty capable for most businesses, as well.

Ease of Use

Actual use is an area where the two platforms differ more noticeably. It’s not that one is substantially easier than the other to learn and use; it’s more that the experience of using each is markedly different than the other.

Microsoft 365

Microsoft enjoys incumbent status here: nearly every office worker on earth already has some familiarity with its products and interfaces. (And those who don’t, well, they’re going to have to learn it eventually.)

We’d say that for the completely uninitiated, Microsoft has a bit higher of a learning curve—but that’s because the apps are all more fully featured than the Google equivalents.

There are some areas where Microsoft has room to grow. Its collaborative tools (where multiple users can edit a document simultaneously) are powerful, but they are less mature and more complicated when dealing with network-based documents. Google’s collaboration features just work, nearly always.

Businesses that want to retain a traditional file structure (or a cloud-based equivalent), Microsoft 365 is the clear winner. Maybe folders are antiquated, but they still make sense to your users.

Google Workspace

Google’s tools are streamlined and lightweight. Learning them is not difficult, and they are, in general, easy to use.

However, it’s hard to get past certain hurdles, especially if you already know Microsoft’s products. Some functions just don’t exist, and others that are easy to use or immediately visible on Microsoft (like word count in Word) are buried three layers deep in Google’s product.

Google’s collaborative features are excellent, surpassing Microsoft’s both in usability and stability. However, Google’s file organization (you could hardly call it a file system) is much more challenging for the average user to understand and acclimate to.

If you work in the ways Google wants you to work, then Workspace has excellent ease of use. But power users or those that need certain functions Google has deemed unimportant will find themselves regularly frustrated.

Administration Differences

It’s crucial to choose a suite of tools that gives your teams the ability to succeed in their work. But businesses also need an appropriate level of administrative control.

This is another area where the two platforms take noticeably different approaches.

Microsoft 365

Microsoft is building on its legacy of building software for business. Organizations familiar with provisioning and endpoint managing Windows computers will find much of the same sort of support with Microsoft 365.

Microsoft 365 administrators can set password policies, configure file access control, gather employee and customer feedback, and much more. And Business Premium customers gain even more advanced administrative abilities, including:

• Remotely wiping lost or stolen devices
• Setting limits on transfer of company information
• Information Rights Management
• Automatic app deployment through mobile device management (MDM)
• Policy management

Mature businesses with complex office environments will benefit from these robust administrative controls, many of which don’t exist within Google Workspace.

Google Workspace

Google Workspace is true to form, offering a streamlined experience that doesn’t fuss with very much in terms of administration. Admittedly, since Google hardly installs any apps on desktops or laptops, they don’t need as much here. But some organizations will likely chafe at just how thin the administrative controls are in Google Workspace.

You can set up file sharing permissions on a team basis, and you can customize your employees’ experience by adding your business logo and providing premade templates. There’s also the ability to turn specific apps off. Still, this isn’t much compared to what Microsoft 365 admins enjoy.

Pricing

See general pricing information for both productivity suites in the sections below.

Microsoft 365

Microsoft has been known for complicated, multi-tiered pricing in the past, but it has simplified its business pricing structure considerably to just four plans. Prices below are on an annual subscription, auto-renew basis.

• Microsoft 365 Business Basic: $6 per user per month
• Microsoft 365 Apps for business: $8.25 per user per month
• Microsoft 365 Business Standard: $12.50 per user per month
• Microsoft 365 Business Premium: $22.50 per user per month

The two lowest tiers are too limiting for most businesses: Business Basic includes web and mobile apps, but not desktop apps. (It’s clearly targeting Google Workspace’s cheapest plan.) Apps for business includes those desktop apps but omits email hosting and custom domains.

Most established businesses will choose between Business Standard and Business Premium, depending on how robust their large file and advanced threat protection needs are. Businesses that need access control or a few other advanced features should also choose Business Premium.

Enterprise businesses have their own set of plans to work through, which we won’t list out separately here.

And if you aren’t sure which plan to choose, don’t worry — we can help you walk through that decision matrix.

Google Workspace

Google’s pricing tiers are simpler than Microsoft’s — which makes sense given that Google’s overall product is also simpler.

• Business Starter: $6 per user per month
• Business Standard: $12 per user per month
• Business Plus: $18 per user per month

Enterprise plans are all custom-quoted.

All Google plans give you custom email and domain and access to all the Workspace apps. The big differences are in cloud storage per user, security and management controls, and quality of voice and video conferencing. Unless you need something fairly obscure, the deciding factor with Google Workspace likely comes down to cloud storage and number of participants in a meeting.

Google’s Business Starter plan is a bargain, but Microsoft’s basic plan offers more at the same price (far more cloud storage and 3x the participants in meetings). It’s hard to recommend Google at the two higher price points as well when Microsoft’s platform offers so much more at roughly similar prices.

What Do We Recommend at Data Magic?

By this point in the guide it may be a little obvious, but at Data Magic, we recommend Microsoft 365 for most customers — either the Business Premium or the Business Standard plan. By our metrics, Microsoft 365 outplays Google Workspace in nearly every category that matters. In the few areas where Google Workspace has an edge, Microsoft 365 remains competitive. And when you work with a world-class managed IT provider like us, we’ll help you navigate any hurdles or issues you may come across.

Do you have questions about which productivity and collaboration suite is right for you? For assistance with this or any other aspect of IT at your business, Data Magic is here to help. Reach out now to get started!

Healthcare organizations are, like many others, in the middle of digital transformation. A new generation of tools and tech promise all sorts of real benefits, from increased efficiency to fewer errors to better data-driven decision-making.

But getting from wherever you are right now in terms of your organization’s relationship with technology to wherever it is you want to go? It’s a complicated process, and there are plenty of places where organizations can get off track.

In some cases, this just means not getting as much efficiency or ROI as possible from a digital transition. That’s highly unfortunate but isn’t necessarily an existential threat. In other cases, though, there’s much more at stake. Transitioning to the wrong system or tool — or using a good tool in the wrong way — can lead to regulatory violations, including HIPAA violations. And that’s something no medical organization wants to face.

Microsoft 365 and SharePoint in the Healthcare Setting

Within this context of digital innovation and regulatory concerns, many healthcare organizations have questions about specific tools and platforms. Microsoft 365 is a wide-ranging suite of tools that offers plenty to healthcare organizations, and many are already using it or are transitioning to it soon.

One pressing question is whether the cloud-based productivity suite is truly HIPAA compliant. Many organizations are asking, is SharePoint HIPAA compliant? What about the broader Microsoft 365 package?

Organizations may already be using these tools for general operations, but is it possible to move electronic health records and other material with personally identifying information (PII) to SharePoint or edit those documents in Microsoft 365?

The answer is, unfortunately, a little complicated. Microsoft isn’t totally clear on whether these products are compliant, and of course they can’t account for user behavior in every instance, either.

So, while it is possible to use Microsoft 365 and SharePoint in HIPAA-compliant ways, it isn’t automatic. Healthcare organizations need technical safeguards in place. That’s something we can take care of for you — but more on that later.

Let’s start with some FAQs you need to know before you make this transition.

Is Microsoft 365 HIPAA compliant?

This is an important question, but it might not be the right question to ask. It’s a little bit like looking at a car and asking whether the car is “speed limit compliant” — unless you’re actually asking whether a car has been somehow programmed to never be capable of exceeding the speed limit, then there’s no such thing as a “speed limit compliant” car. Whether the car operates at the speed limit is entirely up to the driver.

Now, that’s not to say you shouldn’t ever ask questions about the quality of a car — or the quality of a software platform. A shoddily made car might have an accelerator that sticks, creating significant and unnecessary risk. And shoddily made software or digital services could do the same thing with sensitive medical data.

Microsoft 365 is well-made software, to be sure. But it’s nearly as unrealistic to expect Microsoft to be able to stop any and all instances of data misuse as it would be to expect car manufacturers to “lock” cars to the speed limit. The same rules and filters that might prevent a HIPAA violation in a healthcare setting would interfere with normal, ethical use cases in other industries.

Given all this, it’s no surprise that Microsoft isn’t totally clear on whether its products are HIPAA compliant. Can they be used in HIPAA-compliant ways? Yes. But can Microsoft guarantee them as HIPAA compliant? Not without outside help.

Is SharePoint HIPAA compliant?

This is another common question, but again it’s a little like asking “does this car drive the speed limit?”: it’s not exactly the right question, and it’s more about how you use it.

Some organizations want to use SharePoint exclusively for sharing EHR and other files and documents that may contain personally identifying information (PII). So we understand why this leads to the question about whether SharePoint is HIPAA compliant.

The answer is that it certainly can be used in HIPAA compliant ways. But no, the system isn’t designed to somehow prevent users from violating HIPAA — just like your car isn’t designed to prevent you from speeding.

With both products, organizations need specific technical safeguards in place if they want to remain HIPAA compliant. But to get into those safeguards, we need to look closer at aspects of HIPAA itself and compliance with it.

What are the core compliance areas to be HIPAA compliant?

HIPAA compliance breaks down into three core compliance areas:

• Technical compliance
• Administrative compliance
• Physical compliance

Technical compliance deals with the technological systems that interface with patient data that qualifies as PII. Access control, data integrity, authentication of users, and secure transmission of files all fall under this category.

Administrative compliance refers to the policies and procedures that organizations put in place to protect data and data access. Hospital policies about what can and can’t be shared verbally in public areas, rules about passwords and authentication, and any other administrative decisions touching on privacy fall into this category.

Physical compliance deals with the real world: are physical records kept in a location not accessible to the general public? Are on-premises servers and endpoints secure, either by physical barrier (such as a locked server room) or by high-quality access control (badges, passwords, biometrics, etc. for computer access)?

As we look at the question of using Microsoft 365 and SharePoint in a medical setting, all three compliance areas matter. The technical underpinnings of Microsoft 365 come into play, as do the administrative policies an organization sets up around the use of SharePoint. Physical compliance matters as well, though this has less to do with which software or platforms you’re using and more to do with how you physically set up your equipment.

What are the technical safeguards of HIPAA?

HIPAA rules require that organizations maintain “reasonable and appropriate” safeguards in all three of the major compliance areas. Generally, safeguards are reasonable and appropriate if they protect EHR from “reasonably anticipated” threats or disclosures, but HIPAA does not specify or define what these safeguards must look like.

On the technical side, HIPAA describes three types of technical safeguards:

• Access control
• Safeguards on data in motion
• Safeguards on data at rest

Access control

Access control is straightforward enough in concept: only those who have been granted access should be able to access data. So a completely open cloud workspace (like a simple Google Workspace) clearly fails this, while a legacy rights-managed folder-based network generally has the appropriate technical safeguards.

Microsoft 365 and SharePoint can certainly be set up as environments using appropriate access control. So on this point, the products are reasonably HIPAA-compliant.

Data in motion

Data in motion (and data in use) can be harder to protect (or at least to prove protection of). These terms describe when data is in transit between systems or it is actively being used by a system (or human operator).

Typical safeguards on data in motion include data encryption, access control (on systems and on specific data), and using metadata or anonymized data for research and analytics rather than raw data.

Data at rest

Data at rest is data that’s sitting on a server somewhere — either your on-premises server or a cloud server belonging to a provider like Microsoft. This data isn’t being used, but your organization needs to maintain it in case it’s needed later on.

Data at rest safeguards include encryption and access control once again. Physical access control usually comes into play here as well: an unguarded server in an unlocked room may be a HIPAA violation if it gets breached. The argument could be made that the organization didn’t implement “reasonable and appropriate” safeguards — in this case, locks and access control.

How does an IT provider assist in technical HIPAA compliance?

By now it’s likely clear that using Microsoft 365 or SharePoint while staying compliant requires some technical considerations. That’s where an IT provider like Data Magic comes into play.

At Data Magic, we assist healthcare clients with designing and implementing the technical safeguards required and recommended by HIPAA regulations. We design environments where healthcare professionals and support staff can simply do what they need to do, not spend their time worrying about all facets of their technology being compliant.

A quality IT provider assists in this way by providing the cybersecurity layers, risk assessments, and ongoing auditing to make sure clients are covered and remain HIPAA compliant.

Is a BAA needed with Microsoft?

HIPAA regulations stipulate that healthcare organizations must enter into a business associate agreement (BAA) with any business associate that has access to protected health information (PHI). Microsoft states that it “will enter into BAAs with its covered entity and business associate customers,” but the company is quick to point out that the BAA alone does not ensure compliance with HIPAA or HITECH.

Microsoft goes on to state explicitly that your company’s compliance program and internal processes are the key to HIPAA compliance and that “your particular use of Microsoft services aligns with your obligations under HIPAA.”

BAA isn’t automatic, either. If you need a BAA with Microsoft, you’ll need to reach out directly (or through your IT provider).

Microsoft 365 and SharePoint HIPAA Compliance Is Complex. Data Magic Can Help.

By now we hope we’ve showed you that, while it’s possible to use Microsoft 365 and SharePoint in HIPAA-compliant ways, the burden lies on your organization to ensure that you’re in compliance while using the products. And that can get complex in a hurry.

Data Magic is an IT and cybersecurity organization that specializes in creating the technical safeguards and policies needed to achieve HIPAA compliance — with Microsoft 365, SharePoint, and a wide range of other apps and services.

If you’re ready to step into a cloud-forward future — without worrying about compliance — reach out today. We can help you move from where you are to where you want to be.

Changes are coming soon to the Cloud Solution Provider program, according to a recent announcement from Microsoft.

Most of Microsoft’s business-oriented products and services, including the widely used Microsoft 365 suite that includes Word, Excel, Teams, Outlook, and dozens of other apps you may be using every day are being affected, so it’s time to share a little more about what you can expect moving forward.

The term you might come across that describes these changes is the Microsoft New Commerce Experience. Most of the changes within it are technical and behind the scenes, things that your IT service provider will handle for you. But there are a few changes you should know about, including some exciting new features and efficiencies — along with some potential changes to how billing and contracts work.

Here’s everything you need to know as a business leader about Microsoft’s New Commerce Experience — plus a timeline for when the changes will take effect.

What Is the Microsoft New Commerce Experience?

The Microsoft New Commerce Experience is Microsoft’s latest initiative to simplify and streamline its business services offerings. If you’ve worked with Microsoft licenses before, you know that they can be complex and multi-layered, both from an end-user perspective and from a solutions provider or partner perspective.

Under the Microsoft New Commerce Experience, a wide range of plans, each with its own distinct set of policies and procedures, will now be offered under similar licensing terms.

Is This a New Program?

The Microsoft New Commerce Experience isn’t brand-new. Some business products, including Azure plans, server software, Azure RI, and others moved to the New Commerce Experience starting in 2019.

What’s new for 2022 is the transition of other much more broadly used software into the Microsoft New Commerce Experience.

Microsoft 365, Dynamics 365, Power Platform, and Windows 365 in the Cloud Solution Provider Program are transitioning to the New Commerce Experience, which means a much wider set of customers and solutions providers now need to understand the new program and its guidelines.

What’s These Changes Mean to Businesses and End Users

Much of the change involved in this transition is technical, behind-the-scenes tweaking that end-users won’t see or deal with on a day-to-day basis. However, a few of the changes could make a big difference for organizations using Microsoft 365 or other business solutions. Here’s what you need to know.

More Subscription Plan Options

First, the new commerce experience allows businesses to choose from three subscription offers:

• 1-month subscription (month-to-month)
• 12-month subscription
• 36-month subscription

Legacy plans allow for only one choice, a 12-month subscription.

This flexibility is helpful in several ways, though in other ways it’s less flexible than the old plan. The old 12-month subscription allowed companies to drop seats at any point, so it acted more like a monthly subscription in practical terms.

So, what do customers get when choosing each of the new subscription plans?

The 12- and 36-month plans work similarly. Businesses that choose those plans lock in their pricing for the length of the term, both for current and for additional seats. Pricing stays the same as it was under the legacy 12-month plan, and you still pay by the month if you so choose.

The one big change with these plans is that you’ll no longer be able to execute seat reductions at any point. Now you’ll need to do those at the end of your 12- or 36-month term. For businesses with high volatility or seasonal workforce expansion and contraction, this change is less than ideal.

What about the month-to-month plan? That plan offers everything that the other plans include, just with less commitment. You’ll be able to add or reduce seats at the end of every month, giving you much greater flexibility. However, that flexibility and lack of commitment come at a cost: the 1-month plans are priced at a 20% premium over the others.

These costs and terms are consistent with other products, including the Microsoft Web Direct program, bringing greater transparency and simplicity to Microsoft products and plans.

Pricing Updates

Alongside updated subscription options come several price increases for 6 key Microsoft packages. These increases are as follows:

• From $5 to $6 per user for Microsoft 365 Business Basic
• From $20 to $22 per user for Microsoft 365 Business Premium
• From $8 to $10 per user for Office 365 E1
• From $20 to $23 per user for Office 365 E3
• From $35 to $38 per user for Office 365 E5
• From $32 to $36 per user for Microsoft 365 E3.

These price increases will take effect whether you choose a monthly (price increase + 20% premium for all licenses) or annual subscription. However, a 3-year term will lock in current pricing.

Better Provisioning and Subscription Management Capabilities

Along with these new plans, Microsoft is rolling out new behind-the-scenes tools and updates that make life easier for businesses and the providers that serve them. The company is enhancing provisioning capabilities so that companies (or their IT services partners) can more easily provision equipment without running into licensing snags.

There’s also improved subscription-management capabilities, with streamlined methods for adding seats and reassigning licenses. Along with this comes the ability to automate subscription changes at renewal and an easier price list.

Increased Choice and Flexibility

By better aligning these core product offerings with other products and services, Microsoft is making it easier for businesses to adopt new products and add-ons. Now, those additional services don’t require an entirely separate billing and payment system, because nearly everything available through Cloud Solutions Providers is now a part of the New Commerce Experience.

And while the premium-priced monthly term subscription may sting a little, businesses with wide variances in software needs within a calendar year will benefit from all this added streamlining and flexibility.

Windows 365 Now Available

Another strategic advantage for some businesses is the addition of Windows 365, now available on a monthly term (with annual pricing). Windows 365 is a cloud-based service for creating cloud-based Windows virtual machines, called Cloud PCs.

Again, while not every business has a need for Windows 365, the ones that do use this service will benefit from a streamlined commerce experience that makes this service available alongside other Microsoft offerings.

When Does the Microsoft New Commerce Experience Begin?

Microsoft expanded this new experience and model out to include Microsoft 365, Dynamics 365, Power Platform, and Windows 365 on January 10, 2022.

That means you already have access to the new model and can switch at any time. New customers likewise already have the opportunity to start their Microsoft relationship in the New Commerce Experience (though there’s a short window during which new customers can choose either experience).

If you’re a current Data Magic client and we haven’t yet discussed what these changes will mean for your plan, we’ll be in touch soon. Or, if you’re itching to switch earlier than is required, feel free to get in touch with us first.

When Do Microsoft’s Legacy Commerce Plans End?

While Microsoft is positioning this change as a positive, forward-thinking one, we understand that any change can be disruptive. If you’re hoping to hold onto your current plan for a little longer, you may have a small window to do so depending on when you last renewed.

The final date for sales under the Legacy Commerce plans is March 10, 2022. No new sales under the legacy terms will be allowed beyond that date.

Businesses and organizations on an existing Legacy Commerce plan have a little longer to renew. Microsoft has set an end-of-renewal date of June 30, 2022.

The takeaway: if your plan is up for renewal before June 30, 2022, you have the option to renew your existing legacy contract or to move to the New Commerce Experience. If your renewal lands after that date, you’ll need to choose from the available options in the New Commerce Experience.

Other Key Takeaways

We’ve covered the basics of this transition, but there are a few more observations and takeaways you should know.

12- and 36-Month Customers Should Plan Carefully

The 12- and 36-month new commerce plans allow customers to lock in rates for those time periods and to add seats to their license at that locked-in rate.

However, these plans don’t allow customers to drop seats during the term at all. This change means that customers on these plans need to plan their seats carefully.

If there’s a likelihood of lowering headcount or fluctuating staffing levels, you might end up paying for seats you don’t need for quite a few months.

Subscriptions Don’t Transfer Between IT Providers

Another point worth noting is that customers on Microsoft New Commerce Experience plans cannot transfer those 12- or 36-month subscriptions to a new IT provider. Locking in on one of those plans essentially means committing to another 12 or 36 months with your current managed IT provider — or getting stuck with a costly “dead subscription” if you do make the switch.

If you’re not 100% satisfied with the service you’re getting from your current provider, then be ready to make the switch when your current license is up for renewal. We are ready to step in and help you navigate this kind of switch as well.

The New Commerce Experience Is Independent of Already-Announced Price Increases

Last, you may have heard about another recent Microsoft announcement, where the company explained that price increases were coming across the board to its commercial plans for products like Microsoft 365.

That is still happening, effective March 1, 2022. Unfortunately, those price increases will apply to the 12- and 36-month agreements. The month-to-month arrangement will be priced 20% higher.

There’s a bit of good news on this point, though: as an incentive to get companies moving toward New Commerce Experience plans, legacy customers can postpone the price increase and even lock in an additional 5% savings — but only if they move quickly. For more on this discount — or anything else about the New Commerce Experience — don’t hesitate to reach out to Data Magic. We’re ready and well equipped to help you navigate this transition.