Microsoft 365 FundamentalsDescribe Microsoft 365 pricing and supportMedium
A Microsoft 365 administrator needs to purchase 75 Microsoft 365 Business Standard licenses. The organization prefers to pay monthly but wants to commit to an annual agreement to potentially receive a lower price per user. What is the total monthly cost for these licenses if the annual commitment with monthly payment option costs $12.50 per user per month?
- A$9,375.00
- B$937.50
- C$1,125.00
- D$15,000.00
Show answer & explanationAnswer & explanation
Correct answer: B. $937.50
To calculate the total monthly cost, multiply the number of users by the monthly cost per user. 75 users * $12.50/user/month = $937.50.
Why the other options are wrong
- A. This is an incorrect calculation; it might represent an incorrect multiplication by 100 instead of the actual user count.
- C. This would be the cost if the per-user price was $15.00, not $12.50.
- D. This represents an annual cost if the monthly cost was $1,250, or a per-user cost of $200 annually, which is incorrect.
Microsoft 365 Annual Commitment (Monthly Payment)
A billing option where an organization commits to a Microsoft 365 subscription for a full year but pays for it in 12 equal monthly installments, often receiving a discount compared to a pure monthly commitment.
- Lower per-user cost than pure monthly commitment.
- Commitment for 12 months.
- Payments are made monthly.
- Subscription cannot be cancelled or reduced during the term without penalty.
Memory trick: Users times monthly price equals total monthly spend.