Microsoft Price Increases
Microsoft To Increase Prices on Certain Microsoft 365 Plans
A Decade of Innovation
Since Office 365's launch a decade ago, Microsoft has grown to over 300 million commercial paid seats, and along the way, Microsoft continues to re-invest in the platform to meet customers’ changing needs.
Microsoft 365 was introduced four years ago to bring together the best of Office, Windows, and Enterprise Mobility and Security (EMS). That same year, Microsoft Teams was added as an integrated solution where you can meet, chat, call, collaborate, and automate business processes.
Since Microsoft 365’s introduction, 24 apps have been added including Microsoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer, and Whiteboard. In addition, over 1,400 new features and capabilities were released in these three key areas of:
- Communication and Collaboration
- Security and Compliance
- AI and Assistance
Microsoft Price Changes
With the level of innovation Microsoft has brought to Office 365 and Microsoft 365, for the first time in 10 years, Microsoft has announced pricing changes for certain plans that will go into effect March 1st 2022.
Per Microsoft 365’s Corporate Vice President, Jared Spataro: “This updated pricing reflects the increased value we have delivered to our customers over the past ten years.”
The subscription prices will increase as follows:
| Plan | Current Price | New Price | Percentage Change |
|---|---|---|---|
| Microsoft 365 Business Basic | $5.00 | $6.00 | 20% |
| Microsoft 365 Business Premium | $20.00 | $22.00 | 10% |
| Office 365 E1 | $8.00 | $10.00 | 25% |
| Office 365 E3 | $20.00 | $23.00 | 15% |
| Office 365 E5 | $35.00 | $38.00 | 9% |
| Microsoft 365 E3 | $32.00 | $36.00 | 13% |
Microsoft New Customer Experience (NCE)
In addition to the price increases, Microsoft will be introducing a new billing model entitled the New Commerce Experience (“NCE”). Under the NCE model, there will be three options by which to pay for Microsoft 365 licenses:
- Monthly with an important note - Under Microsoft’s new NCE, you will now be required to pay a 20% premium on all month-to-month licenses.
- Annual - Paid Upfront
- 3 Year - Paid Upfront
As a Microsoft CSP Partner,
Reliable Solutions Group is committed to providing a smooth transition through this new pricing structure, and we will be working with all our 365 clients for auditing, budgeting, and strategic planning.
