Microsoft 365 FundamentalsDescribe Microsoft 365 pricing and supportMedium
A Microsoft 365 administrator is preparing for an annual budget review and needs to understand the total cost of their Microsoft 365 Enterprise E3 subscription for the upcoming year. They have 500 users, and the current monthly cost per user is $32.00. The organization has committed to an annual payment plan to receive a discount. What is the total annual cost the administrator should budget for?
- A$192,000.00
- B$480,000.00
- C$384,000.00
- D$16,000.00
Show answer & explanationAnswer & explanation
Correct answer: A. $192,000.00
To calculate the total annual cost, multiply the monthly cost per user by the number of users and then by 12 months. (500 users * $32.00/user/month) * 12 months = $192,000.00.
Why the other options are wrong
- B. This is an incorrect calculation, significantly higher than the actual annual cost.
- C. This is double the correct annual cost, possibly a calculation error or misunderstanding of the monthly versus annual term.
- D. This represents the monthly cost for all users, not the annual cost.
Microsoft 365 Annual Cost Calculation
The process of determining the total yearly expenditure for a Microsoft 365 subscription based on per-user monthly costs and the number of users.
- Costs are typically presented as per-user per-month.
- Annual commitments often provide a discount compared to monthly commitments.
- Total annual cost = (cost per user per month * number of users) * 12.
Memory trick: Months x Users x Rate = Total Budget.