Microsoft is set to increase pricing on their Office 365 products. Commercial use of MS 365 licenses will come at a higher premium in the new year.
The New Commerce Experience also aims to bring customers into one-year or three-year subscription terms with Microsoft’s CSP partners (like Appriver), and all partners who sign up customers for these longer terms will receive discounts. However, there will be a 20 percent price hike for customers who want to remain on the current monthly subscriptions. It is important to note that this is in addition to the 15 percent price increase for Microsoft 365 commercial plans, which will go into effect on March 1, 2022.
When is the Microsoft 365 Price Increase Happening?
The price increase will go into effect on March 1, 2022
Are All Microsoft 365 Plans Being Impacted?
No, all users will not experience a price increase on March 1st. For example, home and educational users will not be included, those prices will stay the same for now.
Also, it is not all commercial plans that are increasing. For example, Microsoft 365 Business Standard Users are not having their subscription prices impacted.
Which Microsoft 365 Plans Will Increase & By How Much?
The following commercial plans will be getting an increase. This is going to be anywhere between $1 to $4 per user per month, depending on the subscription plan.
The increase is global, being adjusted for each currency. The plans being impacted are as follows:
- Microsoft 365 Business Basic: Going from $5 to $6 per user (+$1)
- Microsoft 365 Business Premium: Going from $20 to $22 per user (+$2)
- Office 365 E1: Going from $8 to $10 per user (+$2)
- Office 365 E3: Going from $20 to $23 per user (+$3)
- Office 365 E5: Going from $35 to $38 per user (+$3)
- Microsoft 365 E3: Going from $32 to $36 per user (+$4)
Why Is Microsoft Increasing Their Pricing Now?
Microsoft notes several different reasons for the need to increase pricing, the additional applications that have been added over the years is just one of those reasons.
Security is another major reason. As cybersecurity threats have become more prevalent, the company has integrated additional security features into Microsoft 365 to help companies better secure their accounts and data.
One of these is the ability to encrypt email messages and attachments when sending them. Another is the addition of data loss prevention, which helps reduce the accidental sharing of sensitive information.
Compliance requirements for data privacy is another area where Microsoft has added a lot of capabilities for companies. This includes things like eDiscovery and core Litigation Hold.
Virtual meeting and team collaboration has become even more vital due to the pandemic. This is an area where Microsoft has focused a lot of resources.
It has added multiple enhancements to Microsoft Teams in the last year to enable companies to make more meaningful and effective online connections with internal teams and customers.
It should be noted that Microsoft has not increased its pricing in over 10 years. The primary cause for the rise in cost is increased security needed to protect your data and information.
Questions About How The Microsoft 365 Price Increase Will Affect Your Insurance Agency?
Archway Computer’s Insurance Technology Specialists will happily review any pricing changes with you at your request. For more information, contact us or book a call with Archway President, Brad Ruben, to learn more.