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rencore.com
What you have to know
about Microsoft’s cloud
pricing increase
– and how you can
still save money!
22/02/2022
rencore.com
Microsoft RD + MVP
Christian Buckley
Let’s jump right in!
rencore.com
As announced in November 2022,
beginning April 1st, 2023 Microsoft is
moving to global US Dollar pricing
Microsoft’s Global Pricing for Cloud Services
rencore.com
• Consistent pricing based on exchange rate of local currency
• Microsoft will assess and adjust pricing in local currency twice a year
• Across the EU, for example, this will result in a 9-15% increase
Microsoft’s Global Pricing for Cloud Services
Source https://news.microsoft.com/europe/2023/01/05/consistent-global-pricing-for-the-microsoft-cloud/
rencore.com
• Perpetual licenses will not be affected.
• Customers with an existing agreement with price protection for previously
ordered products will not be impacted.
• Microsoft Customer Agreements have price protection for the term of their
subscription, but this will change at renewal.
• Azure plan pricing is already based on the US Dollar, so not affected.
• Price adjustments apply to commercial, governmental and educational customers
Microsoft’s Global Pricing for Cloud Services
Source https://news.microsoft.com/europe/2023/01/05/consistent-global-pricing-for-the-microsoft-cloud/
How to move forward
W. Edwards Deming
“Without data, you're just another person with an opinion.”
“If you can't describe what you are doing as a process,
you don't know what you're doing.”
“You don't know what you don't know.”
“Inspection to improve quality is too late, ineffective, costly.
Quality comes not from inspection, but from the
improvement of the production process.”
“People generally want to do the right thing, but
in a large organization, they frequently don't
really understand what is the right thing.”
“Optimize the system.”
governance
(noun) /ˈɡʌv(ə)nəns/
the act or process of governing or overseeing
the control and direction of something
Source: Meriam Webster
rencore.com
Rapid service growth & adoption
Siloed data
Intransparent licensing
Tedious and time-consuming tasks
Lack of understanding where and how to act
M365 Governance Challenges
rencore.com
1. Licensing
2. Storage
3. Consumption
Microsoft 365 Cost Drivers
rencore.com
What causes the most unnecessary costs in your
M365 tenant?
rencore.com
Licensing Challenges
Offboarded users remain licensed
Inactive users remain licensed
Licensed external users
Users are “over-licensed”
Too many licenses
rencore.com
Storage Challenges
 SharePoint Site storage limit increasing
 OneDrive storage capacity
threshold increasing
 Large SharePoint Sites & OneDrives
are not cleaned up/archived
 Unused SharePoint Sites consuming storage
rencore.com
Consumption Challenges
Premium Connectors
in Flows and PowerApps
Unused Flows & PowerApps
Collaboration Clutter
(Inactive Teams, Sites, etc.)
rencore.com
Found 12k of 24k unused SharePoint Sites
--> Archive in blob storage
--> Reduce storage costs
Found 250+ users that have both E5 and E3 licenses but need only E3
--> Reduce Licensing Costs
Found 50+ Flows and PowerApps that make use of premium features
--> Delete unnecessary ones and save costs
Examples of Rencore Customers
rencore.com
Environment evolves and
grows constantly
Impossible to manage manually,
does not scale
Hard to identify relevant data
and report on
Costs are a problem – Now what?
rencore.com
Your organization is constantly changing!
Governing manually does not scale.
Solution:
Implement continuous and automated governance
Core Governance Challenge
rencore.com
Rencore Cloud Governance Maturity Model
Reporting
Resolution
M365 Services
Manual
Manual
Few
Automated
Manual
Few
Automated
Automated
Few
Automated
Automated
All
rencore.com
• Manual discovery
• Too many admin centers to keep track
• Not all required data easily accessible
• Manual resolution
• Time consuming and
not easily repeatable
Maturity 1: Extract info from Admin Centers
List of MS Portals: https://msportals.io
rencore.com
Write a custom PowerShell script and generate CSV
• Reports need to be generated and reviewed manually
• Script needs to be maintained
• Needs to be created for every service
• Not actionable
• Does not scale
Maturity 2: Extract with PS and resolve manually
Example by Tony Redmond: https://office365itpros.com/2020/01/14/office-365-groups-teams-activity-report/
rencore.com
Maturity 3: Use Power Automate, Azure
Automation
Write custom Flows, Azure Runbooks to resolve
• Custom DIY solution like PS
• APIs change too quickly and often
• Braindrain when expert who built it
leaves the company
• Possibly requires
Power Automate Premium license
rencore.com
Maturity 3: Group Expiration Policy
Use Azure AD Group Expiration Policy
• Does only cover groups
(no files, no teams, no license, no sites etc.)
• Does only support automatic deletion / archiving
• Automations not customizable
• Requires Azure AD Premium license
https://docs.microsoft.com/en-US/azure/active-directory/enterprise-users/groups-lifecycle
rencore.com
• Ready made policies, reports
and automation templates
• Fully customizable without developer skills
• All M365 services governed in one
platform
• Maintained and updated by Rencore
• SaaS or self-hosted in Azure
Maturity 4: Rencore Governance
rencore.com
1. Inventorize your tenant
2. Track changes
3. Identify and report trends
4. Implement cost optimization policies
5. Automate fixing of policy violations
5 steps to keep your costs under control!
Schedulea1:1walkthrough
url.rencore.com/cost-demo
DEMO
Find out how much
you can save
GovernanceCostSavingsCalculator
url.rencore.com/gov-calc
Q&A
Schedulea1:1walkthrough
url.rencore.com/cost
Thank you!
💙 💙 💙

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What you have to know about Microsoft’s cloud pricing increase

  • 1. rencore.com What you have to know about Microsoft’s cloud pricing increase – and how you can still save money! 22/02/2022
  • 2. rencore.com Microsoft RD + MVP Christian Buckley
  • 4. rencore.com As announced in November 2022, beginning April 1st, 2023 Microsoft is moving to global US Dollar pricing Microsoft’s Global Pricing for Cloud Services
  • 5. rencore.com • Consistent pricing based on exchange rate of local currency • Microsoft will assess and adjust pricing in local currency twice a year • Across the EU, for example, this will result in a 9-15% increase Microsoft’s Global Pricing for Cloud Services Source https://news.microsoft.com/europe/2023/01/05/consistent-global-pricing-for-the-microsoft-cloud/
  • 6. rencore.com • Perpetual licenses will not be affected. • Customers with an existing agreement with price protection for previously ordered products will not be impacted. • Microsoft Customer Agreements have price protection for the term of their subscription, but this will change at renewal. • Azure plan pricing is already based on the US Dollar, so not affected. • Price adjustments apply to commercial, governmental and educational customers Microsoft’s Global Pricing for Cloud Services Source https://news.microsoft.com/europe/2023/01/05/consistent-global-pricing-for-the-microsoft-cloud/
  • 7. How to move forward
  • 8. W. Edwards Deming “Without data, you're just another person with an opinion.” “If you can't describe what you are doing as a process, you don't know what you're doing.” “You don't know what you don't know.” “Inspection to improve quality is too late, ineffective, costly. Quality comes not from inspection, but from the improvement of the production process.” “People generally want to do the right thing, but in a large organization, they frequently don't really understand what is the right thing.” “Optimize the system.”
  • 9. governance (noun) /ˈɡʌv(ə)nəns/ the act or process of governing or overseeing the control and direction of something Source: Meriam Webster
  • 10. rencore.com Rapid service growth & adoption Siloed data Intransparent licensing Tedious and time-consuming tasks Lack of understanding where and how to act M365 Governance Challenges
  • 11. rencore.com 1. Licensing 2. Storage 3. Consumption Microsoft 365 Cost Drivers
  • 12. rencore.com What causes the most unnecessary costs in your M365 tenant?
  • 13. rencore.com Licensing Challenges Offboarded users remain licensed Inactive users remain licensed Licensed external users Users are “over-licensed” Too many licenses
  • 14. rencore.com Storage Challenges  SharePoint Site storage limit increasing  OneDrive storage capacity threshold increasing  Large SharePoint Sites & OneDrives are not cleaned up/archived  Unused SharePoint Sites consuming storage
  • 15. rencore.com Consumption Challenges Premium Connectors in Flows and PowerApps Unused Flows & PowerApps Collaboration Clutter (Inactive Teams, Sites, etc.)
  • 16. rencore.com Found 12k of 24k unused SharePoint Sites --> Archive in blob storage --> Reduce storage costs Found 250+ users that have both E5 and E3 licenses but need only E3 --> Reduce Licensing Costs Found 50+ Flows and PowerApps that make use of premium features --> Delete unnecessary ones and save costs Examples of Rencore Customers
  • 17. rencore.com Environment evolves and grows constantly Impossible to manage manually, does not scale Hard to identify relevant data and report on Costs are a problem – Now what?
  • 18. rencore.com Your organization is constantly changing! Governing manually does not scale. Solution: Implement continuous and automated governance Core Governance Challenge
  • 19. rencore.com Rencore Cloud Governance Maturity Model Reporting Resolution M365 Services Manual Manual Few Automated Manual Few Automated Automated Few Automated Automated All
  • 20. rencore.com • Manual discovery • Too many admin centers to keep track • Not all required data easily accessible • Manual resolution • Time consuming and not easily repeatable Maturity 1: Extract info from Admin Centers List of MS Portals: https://msportals.io
  • 21. rencore.com Write a custom PowerShell script and generate CSV • Reports need to be generated and reviewed manually • Script needs to be maintained • Needs to be created for every service • Not actionable • Does not scale Maturity 2: Extract with PS and resolve manually Example by Tony Redmond: https://office365itpros.com/2020/01/14/office-365-groups-teams-activity-report/
  • 22. rencore.com Maturity 3: Use Power Automate, Azure Automation Write custom Flows, Azure Runbooks to resolve • Custom DIY solution like PS • APIs change too quickly and often • Braindrain when expert who built it leaves the company • Possibly requires Power Automate Premium license
  • 23. rencore.com Maturity 3: Group Expiration Policy Use Azure AD Group Expiration Policy • Does only cover groups (no files, no teams, no license, no sites etc.) • Does only support automatic deletion / archiving • Automations not customizable • Requires Azure AD Premium license https://docs.microsoft.com/en-US/azure/active-directory/enterprise-users/groups-lifecycle
  • 24. rencore.com • Ready made policies, reports and automation templates • Fully customizable without developer skills • All M365 services governed in one platform • Maintained and updated by Rencore • SaaS or self-hosted in Azure Maturity 4: Rencore Governance
  • 25. rencore.com 1. Inventorize your tenant 2. Track changes 3. Identify and report trends 4. Implement cost optimization policies 5. Automate fixing of policy violations 5 steps to keep your costs under control!
  • 27. Find out how much you can save GovernanceCostSavingsCalculator url.rencore.com/gov-calc

Hinweis der Redaktion

  1. The price increase will affect all Microsoft cloud services, including popular offerings such as Azure, Dynamics 365, and Microsoft 365. While this news may be unwelcome to many businesses and organizations, Microsoft has stated that the change is necessary in order to maintain consistent global pricing for their cloud services. In a statement, the company explained that “periodic adjustments to local currency pricing are necessary to ensure that customers in different regions are paying consistent prices for similar cloud services.”
  2. Take note: Because there is a (maximum) semi-annual price adjustment, this means that during 2023 there can be another update. This could be another price increase, but a decrease is also possible if the US Dollar – local currency exchange rates change in the benefit of the local currency. Microsoft will announce such adjustments in a timely manner.
  3. Some specifics to know: Perpetual licenses will not be affected (e.g., Windows Servers, Exchange Server, Office Professional Plus, Windows Enterprise 11 on-prem) Customers with a running agreement with price protection (such as the Enterprise Agreement, Open Value (Subscription) Company Wide) benefit from price protection for previously ordered products and those products will not receive the new, higher price under that Agreement Customers with a Microsoft Customer Agreement (seat based offers, such as Office 365, Microsoft 365, Dynamics 365) do have price protection during the term of their subscription. Only at renewal of their subscription after April 1st or when they start a new subscription after April 1st, they will receive new pricing Azure Plan through the Microsoft Customer Agreement is already priced in US Dollar with a monthly new price list and will not be affected Price adjustments apply to commercial, governmental and educational customers Also If you are currently on month to month Microsoft 365 pricing or have an annual commitment due for renewal before 1st April 2023, you can avoid the price increase for up to a year by renewing / committing to a 12-month term.
  4. William Edwards Deming (October 14, 1900 – December 20, 1993) was an American engineer, statistician, professor, author, lecturer, and management consultant. He is also known as the father of the quality movement and was hugely influential in post-WWII Japan. In fact, the highest quality award that you can achieve as an organization in Japan is the Deming Award.
  5. Offboarded users remain licensed: https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/reports/663324492608934 Inactive users: https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/reports/663324492610293 Over-licensed users https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/reports/663324646234686 Licensed external users: https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/reports/663324492609633 Too many licenses: https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/reports/663324492608043 Automation Remove License: https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/automation/066fe51880929d8249a5af0bdc36f946
  6. SharePoint Storage Limit https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/checks/663324492637539 OneDrive Storage Limit https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/checks/663324492643974 Large OneDrive https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/checks/663324492642447 Unused SharePoint Sites: https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/reports/663324492641472 Automation Email to OneDrive Owner: https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/automation/acf66a5142697da0f589b631f2ee4937
  7. Premium Flows https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/checks/663324492623778 Stopped Flows https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/checks/663324492623529 Inactive Teams https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/checks/663324492619110 SharePoint Sites w/o Owners https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/checks/663324492635835 Declutter Dashboard https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/dashboards/442216387669216 Automation (archive unused Team) https://westeurope.app.rencore.com/workspaces/104422163287/environments/66332449233/automation/70fac5886547e41bc7fefa0166d54447