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The article is not stating the situation correctly. From the official blog of MS this monthly subscription will be an additional licensing model for Enterprise and business customers, not a replacement. Office365 already has both a yearly and monthly plan in addition to being able to purchase a full Office 2013 and 2016 license.

The premise behind this option is that it enters you into the Software Assurance like program without having to buy it separately. This gives you all upgrades to newer versions so so long as you are still paying the subscription fee. That and MS loves money and although you get a better support structure from MS by going subscription it is much more costly than the older licensing models.