Microsoft 365 Subscriptions – Monthly vs Annual?

If you’ve read our blog post 7 reasons why you should consider using Microsoft 365, you’ll understand why businesses are making the switch from the traditional desktop Office Suite eg Office 2019, to cloud-based subscription Microsoft 365 (formerly known as Office 365).

The main reason businesses are making the switch is because the Office Suite is sold as a one-time purchase meaning you pay a single, up-front cost to use it on one workstation. This means that when there is a new release, you’ll have to buy the new release in the same way, and at the full price for every machine that it is installed on. It also means that after a certain point in time, support for this version will become unavailable and you won’t have access to security updates and bug fixes. 

With Microsoft 365 however, as it is based on a subscription model, users will always have access to the latest version and features, bug fixes and security updates. Users also have the option to pay the subscription either monthly or annually.

So, is it best to purchase a Microsoft 365 subscription monthly or annually? Here are the pros and cons of both subscription options:

Pros of purchasing Microsoft 365 annually:   

  • You often get a discount for paying this upfront

Cons of purchasing Microsoft 365 annually:   

  • You are signed up for the whole year meaning if you need to make any changes before your renewal date, you will likely have to pay extra
  • You have to renew every year
  • You'll only have access to the latest updates twice a year

Pros of purchasing Microsoft 365 monthly:     

  • You only pay for the service as needed
  • You can scale up or down each month
  • You can cancel at any time
  • You do not have to renew every year
  • Quicker access to updates and new features

Cons of purchasing Microsoft 365 monthly:   

  • No annual discount

Whether you are already using Microsoft 365 and would like to look at changing how you purchase your subscription upon renewal, or whether you are looking to migrate from your one-time purchase of Office Suite to Microsoft 365, we’re here to help. Get in touch with us to discuss your options and learn more on our webpage


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