Microsoft’s have annouced the first ‘substantive’ price increase for many of its commercial Office 365/Microsoft 365 subscription plans is coming in March 2022.
On March 1, 2022, Microsoft will be increasing prices for most of its commercial Office 365 and Microsoft 365 subscriptions with the exception of consumer, education and also Microsoft 365 E5, which will not be increased.
The increases will range from $12 per user per year more for Microsoft 365 Business Basic, to $48 per user per year more for Microsoft 365 E3. In some cases, Microsoft is increasing prices to match those of the competition (read, Google), officials said. In other cases, it is adjusting prices to reflect the considerable value added to the Office 365/Microsoft 365 suites over the past several years, they added.
Microsoft have said in a blog post that since the introduction of Microsoft 365 four years ago, they has added 24 apps to their Office 365/Microsoft 365 suites, including Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer and Whiteboard as well as over 1,400 new features to its the core products across Microsoft 365 subscriptions over the past decade.
How much are the increases?
I’ve only seen the US$ pricing so far, but price increases range from $12 pupm for Microsoft 365 Business Basic, to $48 pupm for Microsoft 365 E3. In many cases the reason for these increases is to reflect the considerable amount of value added services added to the Office 365/Microsoft 365 over the past few years.
Microsoft 365 Business Basic up $1 to $6pupm
Microsoft 365 Business Premium up $2 to $22 pupm
Office 365 E1 up $2 to $10 pupm
Office 365 E3 up $3to $23 pupm
Office 365 E5 up $3 to $38 pupm
Microsoft 365 E3 up $4 to $36 pupm
Microsoft 365 E5 No change at $57 pupm.
Microsoft 365 F SKUs – No change.
Jared Spataro, Microsoft Corporate VP for Microsoft 365 said “Microsoft believes the changes in prices may make the Microsoft 365 E5 SKU even more attractive” to customers”.
Take but give back..
Microsoft also said (more quietly) that that will be adding unlimited dial-in capabilities for Teams meetings across all its paid enterprise, business, frontline worker and government suites over the next few months (after offering free conferencing on a limited time for the last 12 months). This will help drive more people towards audio dial in (and presumably voice services) within Microsoft Teams and allows meeting participants to dial-in and join a Teams meeting from any device. Without needing the Teams client installed.
For the official annoucement (US only at time of writing), read the official blog here.