Microsoft Announces Price Increase for Office 365 and Microsoft 365

Microsoft announced a new pricing schedule for both Office 365 and Microsoft 365 that is scheduled to go into effect in March 2022. So, if you’re getting started on your 2022 budgeting for IT services in your organization, here’s what you need to know!

How can my organization budget for the change?

 Effective March 1, 2022, you’ll see price increases for the following Microsoft software: 

  • 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)

The pricing change will affect both commercial and business users of its service as a software (SaaS) offering. However, you’ll be happy to know that these increases will not affect pricing for education or consumers.

Why the price change from Microsoft?

This is the first price increase that users have seen in its commercial software since Microsoft introduced the SaaS offering over a decade ago. Corporate Vice President for Microsoft 365 explains that the increase “reflects the increased value we have delivered to our customers over the past ten years” in his blog that explains the company decision. 

 The increased price accompanies Microsoft’s advancements in communication and collaboration, security and compliance, and AI and automation from which business and commercial consumers benefit. The VP also explained that Microsoft will also be adding “unlimited dial-in capabilities for Microsoft Teams meetings across our enterprise, business, frontline, and government suites over the next few months.” 

So, in short, Microsoft users will get their money’s worth out of the change. 


Need some software like Microsoft 365- or IT-related consulting?

The world of IT and software is ever evolving. Changes in the realm are developing daily. At Advanced Business Solutions, we’ve partnered with hundreds of businesses and organizations to ensure that they’re up to date on all things tech. And we can do the same for you. So, if you want to learn more about any software- or other IT-related need, let’s talk about it!