Microsoft 365 Price increase from March 2022

IT-Pro Support | IT Support Chester | sharepoint office 365

Microsoft will be increasing prices for its Microsoft 365 products. The increases, of up to 20%, will affect business customers and will take effect from March 2022. The increase will apply globally, with local market adjustments for certain regions, however only US pricing is available at present.

Which 365 plans will be affected and by how much?

The basic business plan will see a rise of 20%, from $5 per user to $6, while the high-end Microsoft 365 E3 will increase by 12.5%, from $32 to $36 per user. Equivalent pound sterling currency increases apply at the same rate as well.

The following Microsoft Office 365 plans will also see an increase in price:

Microsoft 365 Business Premium (from $20 to $22)
Office 365 E1 (from $8 to $10)
Office 365 E3 (from $20 to $23)
Office 365 E5 (from $35 to $38)
Microsoft 365 E3 (from $32 to $36)

This increase is for 1,2 and 3 year commitments, if you want to keep on a month by month contract there is an extra 20% fee on top.

The price changes will apply globally, with local market adjustments for certain regions. As stated, the price increases will take effect from 1st March 2022 but will not include consumer or educational products.

Why is Microsoft increasing the price for 365?

Microsoft justified their decision for this increase by saying it was their first “substantive” cost change from the company since launching Office 365 over 10 years ago.

And that “this updated pricing reflects the increased value we have delivered to our customers over the past 10 years,” according to Jared Spataro, Corporate Vice President for Microsoft 365.

Jared Spataro stated that Microsoft had added more than two dozen new apps to the suite of products since it was first introduced, including Teams, which is extremely popular, widely used by companies and which experienced a huge increase in use since the beginning of the Covid-19 pandemic. And that use is not set to disappear either.

It was also highlighted the three key areas where Microsoft products have advanced its performance and delivery to its business customers; communication and collaboration, AI and automation and security and compliance.

It is definitely time to have a Microsoft 365 license review to make sure you are running on the correct licensing and you don’t have any spare licenses just sat around in your account.

If you would like a Microsoft License review please contact us on 01978 869 182

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