Microsoft's Move to CSP — What Perth Businesses Need to Know
Understanding Microsoft 365 licensing, CSP, and what it means for your business
Microsoft is Standardising How Small Businesses Buy Microsoft 365
Microsoft is standardising how businesses with fewer than 300 users purchase Microsoft 365 and related cloud services. For businesses in this range, the Cloud Solution Provider (CSP) program is now the primary and most practical purchasing path — and DM1 is an authorised Microsoft CSP partner.
This page explains what is changing, why Microsoft is making this move, and what to expect from the transition — including what it means for your day-to-day operations and licensing costs. If you have questions, contact DM1 directly.
Why Microsoft is Moving SMBs to CSP
Microsoft’s guidance, tooling, and partner programs strongly support a partner-led approach for SMB customers. For small businesses, this means more responsive support, flexible monthly billing, and access to the full Microsoft cloud stack through a single local partner.
- Partner-led support — DM1 provides localised, ongoing management rather than Microsoft handling it centrally.
- Monthly billing flexibility — adjust licence counts as your team grows or changes.
- Full Microsoft cloud stack — Microsoft 365, Azure, Defender, Intune, and Copilot under a single CSP agreement.
- NCE (New Commerce Experience) — Microsoft's 2022 framework standardising annual and monthly subscription terms.
- End of Open Licensing — Microsoft officially ended its Open Licence program for new purchases in late 2022.
What Has Changed
End of Open Licensing
Microsoft officially ended its Open Licence program for new purchases in late 2022. This program was commonly used by small businesses and IT partners to purchase Microsoft products upfront at volume prices. It is no longer available for new orders.
Removal of Perpetual Office Licences
Microsoft has removed perpetual (one-time purchase) Office licences such as Office 2019 and Office 2021 from the Open Licence channel for most SMBs. Microsoft 365 subscription licences through CSP are now the standard path.
NCE — New Commerce Experience
In 2022 Microsoft introduced the NCE framework, which changes how subscription licences are structured under CSP:
- Monthly subscriptions available but carry a ~20% price premium over annual plans.
- Annual subscriptions are now standard — locking in per-seat pricing for 12 months.
- Three-year subscriptions available with further discounts for stable teams.
- Licence reductions mid-term are generally not permitted under annual commitments.
What CSP Does Not Change
A common concern is disruption to day-to-day operations. Moving to CSP does not affect any of the following:
- Your existing Microsoft 365 tenant, data, and user accounts remain completely unchanged.
- Email addresses, OneDrive, SharePoint, and Teams continue to function as normal.
- End users do not need to learn a new system or change how they work.
- There is no downtime or service interruption during the transition.
Month-to-Month Pricing
All licences are managed month-to-month — add or remove users at any time with no penalty and no lock-in. Your licence count can be adjusted up or down each month to match your actual headcount.
| Plan | Per User per month, inc GST |
5 Users per month, inc GST |
10 Users per month, inc GST |
Key Features |
|---|---|---|---|---|
| Microsoft 365 Business Basic | $11.88 | $59.40 | $118.80 | Teams, Exchange Online, SharePoint, 1TB OneDrive. No desktop Office apps. |
| Microsoft 365 Business Standard | $24.68 | $123.40 | $246.80 | All Basic features + desktop Office apps (Word, Excel, Outlook etc.) + Bookings. |
| Microsoft 365 Business Premium ⭐ DM1 Recommended | $43.43 | $217.15 | $434.30 | All Standard features + Intune MDM, Defender for Business, Azure AD P1, Conditional Access, ransomware detection & recovery. |
| Microsoft 365 E3 | $74.98 | $374.90 | $749.80 | All Business Premium features + unlimited mailbox storage, advanced compliance, eDiscovery. Required when mailbox exceeds 50GB. |
| Microsoft 365 E5 | $112.60 | $563.00 | $1,126.00 | All E3 features + Microsoft Defender for Identity, advanced threat analytics, Power BI Pro, advanced compliance tools. |
All prices inc GST. Month-to-month — licences can be added or removed each month with no penalty or lock-in. Contact DM1 for a current quote.
Annual Commitment — Pay Upfront and Save
If your team size is stable, paying for 12 months upfront reduces your per-user cost. The table below shows the annual total and the saving compared to paying month-to-month for the same period. Figures are per user and for 5 and 10 user examples.
| Plan | Per User per year, inc GST |
5 Users per year, inc GST |
10 Users per year, inc GST |
Saving — 5 Users vs month-to-month |
Saving — 10 Users vs month-to-month |
|---|---|---|---|---|---|
| Microsoft 365 Business Basic | $118.80 | $594.00 | $1,188.00 | $118.80 | $237.60 |
| Microsoft 365 Business Standard | $246.84 | $1,234.20 | $2,468.40 | $246.60 | $493.20 |
| Microsoft 365 Business Premium ⭐ DM1 Recommended | $434.28 | $2,171.40 | $4,342.80 | $434.40 | $868.80 |
| Microsoft 365 E3 | $749.76 | $3,748.80 | $7,497.60 | $750.00 | $1,500.00 |
| Microsoft 365 E5 | $1,125.96 | $5,629.80 | $11,259.60 | $1,126.20 | $2,252.40 |
All prices inc GST. Annual commitment is paid upfront for 12 months. Licence reductions are generally not permitted mid-term. Annual pricing is subject to Microsoft CSP price changes at renewal. Contact DM1 to discuss the right commitment for your team.
What CSP Means for Your Business
Under CSP, licensing becomes a continuous, partner-managed service rather than a periodic contract renewal. This changes your relationship with Microsoft in several practical ways.
One Monthly Invoice
All your Microsoft licensing consolidated onto a single monthly or annual invoice from DM1. No more separate Microsoft billing or renewal surprises.
Licence Management on Your Behalf
DM1 manages your licence count, renewal timing, and plan selection. When you hire, we provision. When someone leaves, we remove the licence promptly.
No Microsoft Relationship Required
DM1 is your single point of contact for licensing questions, billing disputes, and plan changes. No need to manage a direct relationship with Microsoft’s sales or billing systems.
Access to Microsoft Support via DM1
As a Microsoft CSP partner, DM1 has access to Microsoft Partner Support — allowing us to raise technical issues directly with Microsoft on your behalf, with faster escalation than standard end-user support.
Proactive Optimisation
DM1 reviews your licensing at renewal time to ensure you are not over-licensed or under-licensed. For small teams, even one unnecessary licence represents a meaningful cost.
Security Features Included at Business Premium
One of the most significant benefits of the CSP model — particularly at the Business Premium tier — is access to enterprise-grade security tools that were previously out of reach for smaller organisations.
- Microsoft Defender for Business — endpoint detection and response (EDR) across Windows, macOS, iOS, and Android.
- Microsoft Intune — mobile device management allowing DM1 to enforce security policies on devices accessing your environment.
- Azure Active Directory Premium P1 — Conditional Access policies including MFA based on location and device compliance.
- Microsoft Secure Score — ongoing benchmarking of your security configuration against Microsoft best practices.
What the Transition Looks Like
If you are currently purchasing Microsoft 365 outside of CSP, the transition is straightforward and does not disrupt your users. The process typically takes less than one business day and is invisible to end users.
- DM1 establishes a CSP reseller relationship with your Microsoft 365 tenant via a secure authorisation link — no data is moved or changed.
- Your existing licences are reviewed and mapped to equivalent CSP plans. In most cases, users retain the same features.
- Billing transitions to DM1's invoice cycle. You no longer receive separate Microsoft invoices.
- DM1 configures monitoring, security baselines, and any additional services appropriate to your business.
Why DM1?
DM1 has been supporting Perth small businesses since the 1970s. We are an authorised Microsoft CSP partner procuring licences on behalf of businesses across Perth and Western Australia. Our clients get a local, experienced technician who knows their setup — and a single point of contact for all Microsoft licensing, support, and billing.
Talk to DM1 About Your Microsoft 365 Licensing
Perth-based Microsoft CSP partner. Call (08) 6202 6012 or send us a message for a current quote.