Everything To Know About The Microsoft 365 Price Increase
Microsoft has increased the pricing for its commercial Microsoft 365 subscription service from 1st March 2022 after first announcing it back in August 2021. Although the company has delayed the increase for a few reseller partners, the price hike is still coming and most likely for a good reason since, as everyone knows, Microsoft 365 is continually getting updated with the latest features and technologies to meet the ever-changing needs of businesses. Below, we have summarised everything you need to know about this big change.
What this means for current Microsoft 365 products
In short, there will be updated pricing for certain products, like Microsoft 365 and Office 365 options. However, note that this increased pricing is not related to their New Commerce Experience announcement. Furthermore, Microsoft will be introducing a new licensing model named New Commerce Experience (NCE) that will affect Power Platform, Microsoft 365, Office 365, Dynamics 365, and Windows 365 subscriptions. Customers can purchase these as a monthly license or a fixed-term agreement that can be paid upfront, monthly, or annually. More information about this NCE licensing will be released soon.
Which Microsoft 365 products will get increased pricing?
Apart from announcing the new NCE model, Microsoft also made an announcement regarding increased pricing for 20% of certain commercial products effective sometime in March 2022. The affected products are as follows:
SMB
- Microsoft 365 Business Basic
- Microsoft 365 Business Premium
Enterprise
- Microsoft 365 E3
- Office 365 E5
- Office 365 E3
- Office 365 E1
The pricing hike for the listed products will apply globally, albeit local adjustments for certain market regions. At this time, there will be no pricing changes made to consumer and education products.
The reason behind the changes and how they may affect businesses
Microsoft has listed various reasons behind their decision for the planned price hike. Two of the most notable ones include the rapidly increasing number of active users on their cloud and the need to develop more sophisticated cyber security measures and practices to protect the service and its users. While these improvements certainly make sense as to why the company had to increase prices, users should be aware that the introduction of this new system also nets them more benefits that will help to:
- Generate cost savings for longer-term subscription commitments
- Simplify the licensing process
- Offer greater flexibility and more choices in how customers purchase
- Enable further growth through flexible buying opportunities and digital transformation
Final word
Many businesses that rely on Microsoft products may have their budget negatively impacted due to these substantial price changes. Nevertheless, it is not due to superficial reasons but, as Microsoft explained, a necessity to keep the service available to more clients and provide better protection in today’s climate of rampant cyber-attacks.
If this price increase conflicts with business requirements and may require certain changes, it is best to seek the advice of IT consulting services in Singapore first for their professional recommendation.
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