Microsoft 365’s New Pricing

Microsoft 365’s New Pricing

One of the most popular cloud productivity tools in the world is Microsoft 365. Small and large businesses alike have depended on Microsoft’s Office suite (Word, Excel, PowerPoint, Outlook, Teams, etc.) for decades, and now use the cloud version instead. 

Microsoft 365 has become so popular in the 10+ years that the platform has been around (originally released as Office 365) is the result of all the additional apps that have been added. 

As the company has grown over the years, it has added over 24 different cloud applications, increasing its value to businesses. Among them are: 

  • OneDrive for cloud storage 
  • Microsoft Teams  
  • SharePoint 
  • Microsoft Forms 
  • OneNote 
  • Planner 
  • Bookings and many others 

Many of these updates have been at no additional cost, so organizations have enjoyed more capabilities without needing to pay extra for them. Several companies have even been able to save money by dropping other paid subscriptions thanks to the apps and enhancements that Microsoft 365 apps provided. 

The recent addition of webinar registration and sign-up pages to Microsoft Teams is an example of this. Prior to the launch of this service, many companies used a different service to schedule and hold webinars. Microsoft Teams removed the need for that additional service.  

However, the bill for all those value-adding services is about to come due. Microsoft is about to introduce a price increase that it describes as “the first substantive upgrade to Office 365 since its launch a decade ago.”   

As of March 1, 2022, Microsoft will update its pricing, which will affect commercial SaaS (Software as a Service) users. 

The following services will be affected by the price increase: 

  • Microsoft 365 Business Basic ($6.40 to $7.70) 
  • Microsoft 365 Business Premium (from $25.60 to $28.20) 
  • Microsoft 365 E3 (from $42.60 to $47.90) 
  • Office 365 E1 (from $10.20 to $12.80) 
  • Office 365 E3 (from $26.60 to $30.60) 
  • Office 365 E5 (from $46.60 to $50.60) 

It will be the first major price change in 10 years for Microsoft 365 and will affect both annual and multi-year pricing. 

Read more on Microsoft 365’s New Price Increase Here.