It is no great secret that Microsoft is working hard to get customers to recognize the benefit of Office 365 services. Statistics show that they are succeeding. Microsoft has gone on the record saying that Office 365 is the fastest growing product they have ever launched, which when looking at 2013 vs 2014 that equals a 460% year-over-year growth rate. However, even with Microsoft's heavy focus on the "Cloud first, Mobile first" strategy, there are still plenty of customers not ready to make such a move. Many will maintain their current on premise solution for the foreseeable future. Others will seek on premise upgrades and/or migration; for those Microsoft will be releasing On-Premise versions of SharePoint Server 2016, Skype for Business, and Exchange 2016 over the next 12 months. But be advised, whether you are planning on upgrading or staying with your current implementation, when you renew your licensing after July 1st 2015 you will likely be faced with a price increase. Starting on July 1st, User CAL pricing will increase by 15%. It is important to note this price increase will affect all on-premises CALs when licensed per User. Customers that have purchased user CALs on a fixed price contract (Enterprise agreement, SCE, OVS, OVP) will not be affected. Don’t worry, there are ways for you to avoid (or at least delay) the pending increase. Your first option is to sign a new fixed-price agreement before July 1st, 2015. Your second option is to license CAL suites on a per-device basis (device CALS are not increasing in price). Your final option is to purchase one of Microsoft's Cloud Suites, which include Office 365 Enterprise, Enterprise Mobility Suite and Enterprise Cloud Suite. Purchasing any of these suites will provide you with dual access to both online services and on premise server software. By choosing this route you will gain additional enterprise functionality and a per user licensing model. We urge all of our on premise customers to review their existing User CAL agreement prior to July 1st in order to avoid this cost increase. Contact Us today to talk with your Solutions Specialist to go over your current licensing or start a discussion and planning for your migration to the cloud.
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