Annual commitment, monthly payed

Question

Hello, 

I purchase Exchange Online (plan 1) subscription a month ago (1000 licenses) at the cost of 3.88$ per license , using the following method of payment. 

• Commitment: annual
• Payment: monthly

what is the real meaning of this method? 

i am committed for holding the subscription for a whole year, but i can choose whether i want to pay for 1 user or 1000 users on monthly bases? 

because i see that i can reduce the amount of licenses i am paying for,  followed by the "new monthly cost". basically if i want to cancel the subscription (and i guess i cannot, since it is annual commitment), i can reduce the number of the licenses to 1 and pay only 3.88$ until the end of the commitment?

or i will have to pay 3880$ until the end of the commitment, because i purchased 1000 licenses, even if i can reduce the amount of licenses i can use?

your help will be highly appreciated!

Answer 1

Hi Ohad,

You may cancel the subscription from Office 365 admin center> go to Subscription page>Billing. 

More details, please refer to "Cancel your subscription" of this article. 

And you can add or remove licenses at any time. You will receive a credit and prorated rebill on your next billing date after you change the number of licenses.

Please let me know if there is any misunderstanding. 

Regards,

Hans

Answer 2

Hi Ohad,

Please feel free to let me know if I can be of further assistance.

Regards,

Hans