FAQ

Annual vs. Monthly Licensing - What's the Difference?

Microsoft has three different licensing models:

• Annual term with annual payment – with an annual license, you commit to paying for the license for 1 year (12 months) in a single payment. As a result, the price is about 20% cheaper than a monthly license.
• Annual term with monthly payment – if you want an annual commitment but with monthly payments, the price is +5% compared to an annual license with annual payment.
• Monthly term with monthly payment – with a monthly license, the commitment is only for 30 days, but for this flexibility the price is about 20% higher than an annual license.

Why are the prices cheaper on Microsoft’s website?
Microsoft shows the lowest possible price point. On Microsoft’s website, annual licenses with annual payment are displayed as monthly amounts. Although the displayed price appears low, when making the purchase you still have to pay the full annual amount in one payment. On the Primend website, we display annual licenses with monthly payment – which are +5% more expensive, but actually allow you to pay on a monthly basis.
 

Can I change a monthly license to an annual license?
Yes, monthly licenses can be converted to annual licenses at any time. Unfortunately, the opposite is not possible.

Can I terminate and/or change the license agreement?
An annual license can be changed/cancelled after a year and a monthly license after 30 days. The customer has 7 days to make changes or withdraw from the license agreement after acquiring or renewing the license. The first 24 hours are free for the customer.

Can I purchase both monthly and annual licenses?
The customer can have the same license on an annual basis as well as monthly, according to the customer's need.

Licenses renew automatically
Both annual and monthly licenses renew automatically after 365 or 30 days.

What happens to the customer's data when the license order is terminated?
Company data is owned by the company. If you decide to cancel your Microsoft 365 subscription, you can download and save your data, such as email messages and documents stored on teamwork sites, elsewhere. You should save the data before canceling the order. After you cancel your subscription, only the administrators can access the data, but with limited functionality and only for an additional 90 days.

What has become of Office 365 licenses
Office 365 Enterprise agreements are now Microsoft 365 enterprise agreements:

• The new name of Office 365 Business Essentials is Microsoft 365 Business Basic
• The new name of Office 365 Business Premium is Microsoft 365 Business Standard
• The new name of Microsoft 365 Business is Microsoft 365 Business Premium
• The new name of Office 365 Business is Microsoft 365 Business Apps

Why did Microsoft license pricing change?
Microsoft has not raised its prices since Office 365 was launched. The change in Microsoft's price list is because a lot of additional capacity has been added to the licenses over 10 years. The main capability has been added precisely in the field of communication, cooperation, security, and AI capabilities. You can read more here: New pricing for Microsoft 365

Microsoft 365 Business vs. Enterprise
Microsoft has two types of licenses for businesses, Business and Enterprise. Broadly speaking, the difference is that Business package licenses are limited to 300 users. The Enterprise package has no limit. The Enterprise package also includes additional security options to a greater extent and a larger capacity in, for example, SharePoint or Exchange.

Can I mix and match different Microsoft 365 plans?
Yes, you can mix and match Microsoft 365 plans. Please note that there are some license limitations at the plan level. The Microsoft 365 Business Basic, Apps for business, Business Standard, and Business Premium plans have a collective limit of 300 users, while the Enterprise plans are for an unlimited number of users. For example, you can purchase 200 Business Premium seats, 100 Business Standard seats, and 500 Enterprise E3 seats on a single tenant. 

Licenses for educational institutions
Microsoft also offers more affordable licenses designed for educational institutions. To do this, the educational institution must register its Microsoft 365 environment with Microsoft here: https://products.office.com/en-us/academic/compare-office-365-education-plans

Frontline licenses
Frontline licenses or F-licenses are intended for employees whose main device screen is smaller than 10.1' or who share the same device with several co-workers.