Navigating the Microsoft 365 Price Increase: What Business Owners, IT Managers, and Microsoft 365 Users Need to Know
In March 2022, Microsoft announced a significant price increase for its popular Microsoft 365 suite, affecting business customers worldwide. With increases up to 20%, it’s urgent to understand how this impacts your organisation and take the necessary steps without delay.
Overview of the Microsoft 365 Price Increase
Microsoft will increase the prices for several of its Microsoft 365 plans starting 1st March 2022. Here’s a breakdown of the changes:
- The Basic Business Plan will rise by 20%, increasing from $5 per user to $6.
- Microsoft 365 Business Premium will go from $20 to $22 per user.
- Office 365 E1 will increase from $8 to $10 per user.
- Office 365 E3 will rise from $20 to $23 per user.
- Office 365 E5 will shift from $35 to $38 per user.
- Microsoft 365 E3 will jump from $32 to $36 per user.
These changes apply globally, with market adjustments for specific regions. This means that businesses worldwide, regardless of their location, must prepare for these adjustments. While the consumer and educational products remain unaffected, business users must be aware and ready for these changes.
Additionally, businesses opting for monthly contracts expect an additional 20% fee.
UK IT Consultancy Services – Hamblett Consultancy Ltd
Nationwide Remote IT Support Services – Hamblett Consultancy LtdWhy is Microsoft Raising Prices on Microsoft 365?
Microsoft stated that this is their first “substantive” price change since launching Office 365 over a decade ago. According to Jared Spataro, Corporate Vice President for Microsoft 365, this new pricing reflects the increased value delivered to customers over the years.
The company has introduced more than two dozen new apps, including the widely used Teams platform, which saw a surge in demand during the COVID-19 pandemic. Furthermore, Microsoft highlighted advancements in communication, collaboration, AI, automation, and security as key areas where its products have enhanced their offerings.
Essential Considerations for Microsoft 365 Users
While understanding the price increase is crucial, knowing about the fine print accompanying these changes is equally important. Here are some key points to consider:
- Commitment Lock-in: Once you commit to a contract term, you are locked in with your Microsoft 365 provider for its duration. You cannot cancel licenses during this period, but add more if needed.
- Cost Pass-through: Many MSPs must pass these cost increases onto their customers. While some providers may attempt to mitigate these increases, reviewing your current plan and understanding the new costs is essential.
Is It Time for an MSP Review?
Given Microsoft’s new commitments, now might be an opportune time to reassess your Managed Service Provider (MSP). Ensure your MSP has communicated all the details about the Microsoft 365 changes, giving you time to adapt accordingly.
Conducting a comprehensive Microsoft license review is not just a good idea; it’s an essential step to ensure you’re using the correct licensing and not paying for unused licenses. This proactive approach will help you optimise your IT spending and maximise the value you derive from Microsoft 365.
Need Assistance with Your Microsoft License Review?
Suppose you’re considering an MSP review or need a detailed analysis of your Microsoft 365 licenses. In that case, our team is here to help. Contact us today to schedule your Microsoft 365 license review and ensure you’re optimally prepared for the upcoming changes.
By staying informed and proactive, you can effectively manage the Microsoft 365 price increase and safeguard your organisation’s interests.