New pricing for Microsoft 365

Microsoft recently announced new pricing for Microsoft 365 and Office 365 commercial products. Microsoft state the new pricing reflects the increased value customers have received over the last decade, and the innovations delivered over this time. 

Why are prices for Microsoft 365 going up? Ongoing innovation within Microsoft 365

Microsoft has announced new pricing for Microsoft 365 and Office 365 commercial products as it has continued to innovate and evolve the product ranges to meet changing customer needs.

Since Office 365 launched over a decade ago, Microsoft has invested heavily in meeting changing customer needs and demands. Microsoft 365 was created 4 years ago as a superset of Windows, Office 365, and Enterprise Mobility and Security (EMS). In that same year Microsoft introduced the collaborative tool that many businesses today rely on in their day-to-day practices – Microsoft Teams 

From the creation of Microsoft 365 to now, Microsoft has obtained an additional 24 apps to the Microsoft portfolio, including OneDrive, all products under the Microsoft Power Platform, Stream, and Planner – plus over 1,400 new features and capabilities in three key areas. 

Communication intelligence

With more than 250 million monthly active users, Microsoft Teams is the leading chat-based workspace and integrated solution where users can collaborate and automate business processes. In 2020 alone, Microsoft introduced over 300 new features including background effects, Together mode and breakout rooms. 

Microsoft has streamlined the collaboration experience with real-time communication in Word, Excel, and PowerPoint desktop apps. New growing capabilities such as modern comments, assign tasks, @mentions and autosave. Microsoft has also integrated and expanded OneDrive cloud storage and the Exchange Online mailboxes. 

Compliance and security

With cloud hackers and security threats becoming more sophisticated and advanced, cyber security is more important than ever for all organisations. Microsoft has addressed this ever-growing threat with their attack surface reduction capabilities to assist businesses in defending against cyber threats.  

Microsoft introduced security features such as data loss prevention (DLP) for private emails and documents, message encryption and sensitivity labels to help secure important data within organisations.

AI and automation 

Cloud-powered AI innovations automatically build charts and tables in Excel, and organises email and removes clutter in Outlook. AI-powered real-time translation, transcription and captions make communication and collaboration more accessible and engaging for everyone. Microsoft has also infused AI capabilities across Office 365 applications to help everyone achieve more.

New pricing for Microsoft 365

The pricing changes will go into effect in six months. On 1st of March 2022, Microsoft will update their pricing list for the following commercial products: 

Microsoft 365 Business Basic (from $5 to $6 per user) 

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 certain regions. There are no pricing changes for education and consumer products at this time.  

Want to learn more about how you may be affected by the new pricing for Microsoft 365?

If you would like to know more about the impacts of the new pricing for Microsoft 365, please get in contact with a member of our team. We always aim to deliver as much value for money to our customers, and are here to offer advice and guidance on the impacts of these changes.