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Microsoft announces price increase for Office 365 and Microsoft 365

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Highlights:

  • Microsoft announces price increases for Office 365 and Microsoft 365.
  • The updated pricing will go into effect on March 1st, 2022.
  • Consumer and education subscriptions won’t be affected either.

For the first time in a decade, Microsoft is increasing the prices of Microsoft 365 and Office 365 for commercial users. Obviously, this will make business owners unhappy, but ten years without a price increase is pretty reasonable. The price increases will affect business and commercial users of Microsoft’s Software as a Service (SaaS) offerings next year, without any education or consumer pricing changes.

The increases will range from $12 per user per year more for Microsoft 365 Business Basic, to $48 per user per year more for Microsoft 365 E3. In some cases, Microsoft is increasing prices to match those of the competition, officials said. In other cases, it is adjusting prices to reflect the considerable value added to the Office 365/Microsoft 365 suites over the past several years.

The company has added 24 apps to its Office 365/Microsoft 365 suites, including Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer, and Whiteboard. Some of these apps are included for no additional cost; others, like the Power Platform family of products, require separate licenses and subscription fees. Officials also said that Microsoft has added more than 1,400 new features to its Office 365 subscriptions over the past decade.

New Prices for Office 365 and Microsoft 365

Microsoft plans to increase the prices of Office 365 and Microsoft 365 starting on March 1, 2022, so business owners will have a little time to budget before the price jumps.

Here are the price changes, as announced by Microsoft:

  • Microsoft 365 Business Basic (from $5 to $6 per user)
  • Office 365 E3 (from $20 to $23)
  • Microsoft 365 Business Premium (from $20 to $22)
  • Office 365 E1 (from $8 to $10)
  • Office 365 E5 (from $35 to $38)
  • Microsoft 365 E3 (from $32 to $36)

These increases will apply globally with local market adjustments for certain regions, the company said. There are no price changes for education and consumer products at this time, Microsoft added.

Microsoft 365: Benefits

Stay a step ahead with the latest AI-powered apps:​

  • Create inspiring documents with smart assistance features in Word, Excel & PowerPoint​
  • Save up to 500,000 photos* & files with 1 TB of OneDrive cloud storage (*assumes 2MB file size)​
  • Enjoy an ad-free email and calendar experience with Outlook.
  • Windows 365 gives users access to all apps, settings, and tools that the regular copy of Windows comes with.
  • The operating system does not depend on the device you are using and every Windows-related operation happens on Microsoft’s servers.
  • You can access Microsoft Office apps, such as PowerPoint, Excel, Word, Microsoft Edge browser on their personal or corporate machine. They will also have the ability to install apps through the internet or the Microsoft Store.

Thanks for Reading!!

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