Microsoft is pushing businesses to migrate to Microsoft 365, including those that currently have a perpetual license for Microsoft 365.

Microsoft has been working to migrate its customers to its cloud-based services, with the company even rumored to be moving Windows to a subscription model. A sticking point for the company are businesses and organizations that currently enjoy a perpetual license to Microsoft Office and are happy to avoid a monthly subscription fee.

In a blog post, Microsoft is trying to put pressure on perpetual licensees in an effort to move them to Microsoft 365.

As a leader of a small or medium-sized business, you may have invested in Microsoft Office years ago through a perpetual license or “on-premises” version to equip your team with essential productivity apps like Word, Excel, and PowerPoint. Over the years, these familiar tools have become ingrained in your daily operations—so much so that you can’t imagine working without them.

Yet, you may have started noticing limitations. Your apps are stuck on your desktop, limiting productivity anytime you’re away from your office. You can’t easily access your files or collaborate when working remotely or traveling, creating unnecessary friction for your team. Perhaps you’ve seen your company’s IT expenses creep upwards as you’ve added separate solutions for email, file storage, and virtual meetings.

Microsoft then highlights the benefits of Microsoft 365, thanks to its cloud-based architecture.

Microsoft 365 is a cloud-based subscription service that combines best-in-class productivity apps like Word, Excel, and PowerPoint with powerful collaboration, security, and AI-driven tools. With Microsoft 365, you keep the familiar apps your team already relies on, enhanced with the simplicity, flexibility, and security of the cloud.

Empower employees to work from anywhere, meet and chat easily using Microsoft Teams, and collaborate in real-time across documents and apps. Boost your team’s productivity with Copilot, your AI-powered assistant for work. Simplify IT and lower costs by consolidating email, storage, and productivity tools into one integrated solution while safeguarding your company’s data.

The company goes on to cite a study it had commissioned that highlight some of the additional benefits.

To examine the potential return on investment (ROI) companies realize by implementing Microsoft 365, Microsoft commissioned Forrester Consulting to conduct a study on The Total Economic Impact™ Of Microsoft 365 For Business1. The study highlights a substantial 223% ROI over three years, with a payback period of less than six months, proving that the initial investment is quickly recovered. Even more compelling, the study quantified over $500,000 in benefits over three years, driven by:

• Collaboration time savings of 1.5 hours weekly per user thanks to advanced communication tools, business automation, and process improvements.
• Enhanced IT specialist productivity, saving 686 hours annually by reducing help desks tickets and minimizing time spent on system updates and patching.
• Significant cost reductions, with over $297,000 in savings from retiring outdated hardware and software, along with lower IT maintenance costs.

Microsoft ends its appeal by pointing out that Office 2016 and Office 2019 are coming up on their end-of-life date, with support ending October 14, 2025. While organizations can continue to use those versions Office after the EOL date, Microsoft will no longer provide security updates or bug fixes.

Microsoft is clearly working to migrate as many customers as it can to its cloud-based services, and it’s a safe bet the pressure will only continue to mount.