On 19 August 2021, Microsoft announced an update to their commercial pricing for Microsoft 365 (M365) and some Office 365 (O365) licences.
Microsoft is announcing its first price increase for its Office 365 and Microsoft 365 services in a decade. The price increases will affect commercial and business users of Microsoft’s software as a service (SaaS) offerings year 2022, with no changes to pricing for education or consumers.
The changes come into effect on 1st March 2022 and will include the following applications:
- Microsoft 365 Business Basic (from $5 to $6)
- Microsoft 365 Business Premium (from $20 to $22)
- Office 365 E1 (from $8 to $10)
- Office 365 E3 (from $20 to $23)
- Office 365 E5 (from $35 to $38)
- Microsoft 365 E3 (from $32 to $36)
These increases will apply globally with local market adjustments for specific regions.
The good news is that the price increases will only affect commercial and business users, with no changes to pricing for education or consumers subscriptions.
When is the Microsoft 365 Price Increase Happening?
A: The price increase will go into effect on March 1, 2022
Are All Microsoft 365 Plans Being Impacted?
A: 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.
What Do I Get If I Upgrade from Business Basic to Business Standard?
Some users on Microsoft 365 Business Basic may be wondering if an upgrade is worth it, now that the price will be increasing to $6 per user/month.
The Microsoft Business Standard plan is $12.50 per user/month. It includes the following additional features that Business Basic doesn’t have:
Desktop versions of the Office apps for PC and Mac
The ability to host webinars (including registration pages, email confirmations, reporting)
Microsoft Bookings to allow online appointment booking for customers
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