Microsoft 365 Licensing Terms and Conditions
These terms and conditions apply to Microsoft 365 and other Microsoft cloud licences supplied and managed by Qbit IT Solutions (Qbit). They explain the available purchasing options and set out the Customer’s commitments relating to licence terms, billing, renewals, transfers and support.
1. Microsoft New Commerce Experience
In July 2022 Microsoft introduced the New Commerce Experience (NCE) for Microsoft 365 licensing. Under NCE, licences are purchased on either a monthly commitment or an annual commitment term. Microsoft generally does not permit an annual-commitment licence to be cancelled or reduced during its commitment term, subject to any cancellation rights, adjustment windows or exceptions Microsoft or the relevant distributor may make available.
2. Licence Purchasing Options
- Monthly commitment, monthly payment – offers the greatest flexibility and is generally the most expensive option.
- Annual commitment, monthly payment – fixes the licence commitment for the annual term while payments are made monthly.
- Annual commitment, annual payment – the annual amount is paid in advance and is generally the most economical option.
Unless otherwise agreed in writing, Qbit will provision new licences on an annual commitment with monthly payment. If the Customer requires a licence for only a short period, the Customer must inform Qbit before the licence is ordered or a new user is created so that a monthly-commitment licence can be selected. Monthly-commitment pricing is generally higher than annual-commitment pricing and may change in accordance with Microsoft’s current pricing.
3. Licence Quantities, Users and Commitment Terms
A licence may generally be reassigned between eligible users within the Customer’s Microsoft tenancy, subject to Microsoft’s licensing rules. The Customer may order additional licences at any time. However, annual-commitment licence quantities generally cannot be reduced until the applicable renewal or anniversary date. Monthly-commitment licences may be reduced or cancelled in accordance with Microsoft’s then-current rules.
4. Renewal and Reduction Requests
Licences of the same product type may share a renewal date. Microsoft provides only a limited period in which licence quantities may be reduced or cancelled after an order or renewal. To allow Qbit sufficient time to process a change, the Customer must lodge a ticket with techsupport@qbit.com.au before the applicable renewal date and sufficiently in advance of Microsoft’s adjustment deadline. If notice is not received and processed within the permitted period, the licences may renew for a further commitment term and the Customer remains responsible for the resulting charges. Qbit will record known renewal dates in the Customer’s IT Management Plan, but the Customer remains responsible for notifying Qbit of required changes.
5. Different Licence Types
A newly ordered licence type may have its own commitment and renewal date from the date it is provisioned. It may not align with the renewal dates of other licence types in the Customer’s tenancy.
6. Transfer from Another Supplier
The Customer may request that its Microsoft licences be transferred to another managed service provider or supplier. Qbit, the incoming supplier or the Customer may request the transfer through the relevant distributor. Any transfer is subject to Microsoft’s and the distributor’s processes, approval and timing. Qbit cannot guarantee that a transfer will be approved or completed by a particular date. Unless otherwise agreed in writing, a transfer does not cancel or reduce any existing commitment, outstanding invoice or payment obligation.
7. Pricing, Billing and Payment
The Customer must pay Qbit the licence charges stated in the accepted quote, order or agreement. Unless otherwise stated, charges are payable in advance by direct debit. Prices may be changed to reflect Microsoft or distributor price changes, foreign exchange movements, taxes or changes to the Customer’s licence quantities or products. Qbit will provide reasonable notice of a price change where practicable.
8. Non-payment and Suspension
If an amount is overdue, Qbit may suspend or request suspension of the affected licences or services after giving any notice required by the applicable agreement or law. Suspension does not remove the Customer’s obligation to pay charges already incurred or charges that remain payable for the balance of an applicable commitment term.
9. Licence Management and Technical Support
Licence pricing includes supply of the licence and reasonable account administration associated with managing the licence. Unless expressly included in another agreement, it does not include technical services such as account creation, setup, deployment, migration, configuration, remediation, troubleshooting or support for devices, applications or third-party services. Technical work will be charged under the Customer’s applicable support agreement or at Qbit’s current rates. Support requests should be sent to techsupport@qbit.com.au or made by calling 08 6364 0600.
10. Customer Authority and Responsibility
The Customer confirms that each person who requests, approves or changes a licence on its behalf is authorised to do so. The Customer is responsible for providing accurate instructions, maintaining appropriate security and access controls, and promptly reviewing licence quantities and renewal requirements.
11. Acceptance and Microsoft Terms
By accepting a quote, placing an order, requesting that Qbit provision or renew a licence, or continuing to use a licence supplied by Qbit, the Customer accepts these terms and any applicable Microsoft customer agreement, product terms and acceptable use requirements. If there is an inconsistency between these terms and a mandatory Microsoft or distributor requirement, that mandatory requirement will apply to the extent of the inconsistency.
