Microsoft 365 FundamentalsDescribe Microsoft 365 pricing and supportEasy
A Microsoft 365 administrator needs to purchase 120 Microsoft 365 Business Standard licenses for their growing organization. They want to commit to an annual term but prefer to pay for the licenses on a monthly basis to manage cash flow. The annual price per user for Microsoft 365 Business Standard is $150.00, and the monthly price per user (without annual commitment) is $18.00. What will be the total monthly cost for these licenses?
- A$1,800.00
- B$2,160.00
- C$18,000.00
- D$1,500.00
Show answer & explanationAnswer & explanation
Correct answer: D. $1,500.00
To calculate the total monthly cost, multiply the annual price per user by the number of users and then divide by 12 months. (120 users * $150.00/user) / 12 months = $1,500.00 per month.
Why the other options are wrong
- A. This would be the monthly cost if the annual price was $180 per user, or if $15 per user monthly was available.
- B. This would be the cost if they chose the monthly commitment option ($18/user/month * 120 users = $2,160.00), which is more expensive.
- C. This represents the total annual cost, not the total monthly cost.
Microsoft 365 Annual Commitment (Monthly Payment)
Customers can commit to a 12-month subscription term for Microsoft 365 licenses and pay for them in 12 equal monthly installments, typically at a lower per-month rate than a pure monthly commitment.
- Provides a discount compared to month-to-month pricing.
- Requires a 12-month commitment.
- Payments are spread across 12 months.
Memory trick: Annual commitment, monthly payment: Divide the yearly total by twelve.