Microsoft has announced they are going to increase the price of their commercial Microsoft365 products. This price increase will take effect on the 1st March 2022.
Microsoft365 is a huge suite of programs, and since it started, Microsoft has added 24 new programs, to the Office suites—Microsoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer, and Whiteboard. Office365 changed to Microsoft365, which we wrote a blog about.
Microsoft is quick to point out that this price increase is the first substantive increase since its launch of Office365 a decade ago. The investment in updates and new programs has necessitated the price increase.
How much will the price increase?
Microsoft has announced price increases of $1 or $2 per month on the Microsoft SMB per user accounts and $2-4 per month on Enterprise per user accounts. With everything else rising in price, this will certainly stretch the purse strings too. These prices represent a 10-40% price increase. We will let you know the new GBP price when they make the changes on the 1st March. Here is a calculator to help you work out the new prices
Changes in the way you subscribe to Microsoft365
Microsoft is also changing the way you subscribe to the products. The choice will be between an annual subscription and a month-by-month rolling contract. The annual contract, at a lower price bracket, does lock you into the price for the year. You can increase the number of users, but not decrease them. This means you will continue to pay for staff user accounts after they have left for the rest of the years subscription. The flexibility of the month-to-month contract is reflected in a higher price bracket. Though if you need to decrease the number of licences or users, then this option may make more sense.
How can you keep the current price?
You can’t, however, if you are quick and chat to your Microsoft365 provider or chat to us, you may be able to lock yourself into a 1-3 year contract at the current price!