Edition Five
Technology Predictions 2024:
Microsoft Licensing
Insights into 2024 incentives.
Microsoft have transitioned to a subscription first organisation over the last 10 years, although unlike some vendors like Adobe, there are still perpetual license options still available. There is no doubt that Microsoft will continue to push subscription licensing for the majority of their products, but it will be unlikely to see any large commercial discount or ostentatious incentives in 2024.
We know the subscription model offers greater consistent recurring revenue, so Microsoft will entice customers by consistently adding new features – or products to the cloud suites. Rather than via the incentives model.
Flexible licensing in 2024
For something like AI, timely tweaks and refinements are paramount – so a subscription license would also make sense for many customers to ensure they gets these updates and adjustments. Customers are enhancing remote work capabilities and improving security features, so Microsoft will continue to enhance the flexible licensing options in 2024.
More products on CSP
More and more products will be available on CSP, and here at Ultima, we think that will include all “step up” and “add on” options to permit customers to easily add important new features.
What is very interesting is around the perpetual license, and some more surprising trends we may see in 2024 and onwards. There will be a separation of license type in different agreements, with on-premises license and software assurance on MPSA for example:
Cloud subscriptions will remain within EA or CSP – but the value in maintaining software assurance only on Windows Server and SQL will drive customers towards separating the perpetual license from the subscription.
Hybrid benefits
The hybrid use benefits and full license mobility are almost as valuable as the lower price point, and this will drive this separation. It was interesting to see confirmation that Office 2024 will be released with a perpetual license option. Microsoft also pushed Server 2012 ESU via Azure Arc, but over 80% customers purchased this via the on-premises options.
AI innovations driving cloud subscriptions
Organisations will continue to recognise there is significant value in managing cloud subscriptions to support their flexible workspace environment, with the latest security, AI and other innovations. They will also separate the on-premise perpetual license requirement, as the value is securing a longer term commitment and just maintaining the software assurance.
Join the conversation
Our new Microsoft webinar series have been rated highly by attendees for providing essential information in an easy to consume way. Feedback has also credited the session as time ‘well invested’.
The series continues in 2024 with Ian Gerrard, our Microsoft Licensing Leader. Check out and join our webinar dates below.
25th January, 10am-11am:
Maximising Value with Microsoft CSP Licensing
In this webinar, our specialist team will guide you through what a CSP agreement is and its role in providing valuable Microsoft licensing options. We will discuss how you can leverage the maximum value from your investment, especially with a price increase coming in March.
14th March, 10am-11am:
Data Security and Copilot: Why Upgrading to E5 Licenses Is Imperative
This webinar explores the critical importance of safeguarding sensitive information within your organisation, especially when implementing Microsoft Copilot. We delve into why upgrading from E3 to E5 licenses is essential to protect your internal data.
