Microsoft has decided to update the pricing of Microsoft 365 starting March 1, 2022. After the announcement, businesses are puzzled as to how new changes in Microsoft 365 price will leave an impact on their budget.

That being said, there are many ways businesses can minimize waste and make the most out of their Microsoft 365 solution. What’s interesting is that Microsoft 365 price hasn’t been changed since its launch. Therefore, updated commercial pricing of Microsoft 365 comes at a bump.

What Does the Price Increase of M365 Signify?

Predominantly, the price increase may come relative to most businesses. Besides, Microsoft 365 now comes with better collaboration, communication, security, compliance, automation, and audio conferencing features. These features represent are hallmark to ensure continuous business innovation.

Although this is the first price update for Office 365, Microsoft has been able to reinvest in many apps to meet the new needs of diverse customers. In fact, Microsoft has managed to add 24 apps to 365 Suite with 1,400 unique new features.

Prices Increase of Microsoft 365 Suite

On average, the increased price of M365 ranges from 9% to 25%. With the new price update of Microsoft 365, not all business and enterprise plans will increase. As of now, the monthly value per use ranges between $1 and $4. Annually, the value ranges from $12 to $48 for each user.

The new prices of Microsoft 365 for various plans are listed as:

  • M365 Business Basic is increased from $1 to $6 per user, per month
  • M365 Business Premium is increased by $20 (from $2 to $22) per user, per month.
  • Office 365 E5 is increased $3 to $38 per user, per month.
  • Office 365 E3 is increased from $3 to $23 per user, per month.
  • Microsoft 365 E3 has had an increase from $4 to $36 per user, per month.
  • Office 365 E1 is up from $2 to $10 per user, per month.

Unaffected Customers

Despite the first-time change in prices of Microsoft 365 Suite, some plans have the same pricing. For instance, the latest F-series that cater to frontline workers and Microsoft’s comprehensive and expensive 365 E5 plan will have the same prices. Reports suggest that the plan will continue to sell at $57 for monthly use per user.

Other unaffected Microsoft 365 plans are educational. These plans will have no changes and focus on academic-based consumer products. But you can expect the new prices of Microsoft 365 to foreshadow unaffected plans.

Why Sudden Increase in Prices of Microsoft 365?

The increased price of Microsoft 365 didn’t occur out of thin air. In fact, as soon as Microsoft decided to move to a perpetual-based Office that requires an upfront payment to get software rights, the company was ready to hike up the prices by 10% on enterprise edition M365.

With increased prices, Microsoft wants to make its Microsoft 365 editions more competitive. Experts believe that price changes will have an impact on licensing models and “how” businesses use different plans for different purposes.

Microsoft 365 Price Increase: What Else?

And from next year, the increased prices of Microsoft 365 will impact business and commercial users that avail Microsoft’s SaaS offerings. Since 2011, Microsoft Office 365 has been thriving in over 40 markets.

And the consistent improvement of top-tier Office 365 apps like OneDrive, Microsoft Teams, and SharePoint has made an impression in the business circle. With the first major price update, Microsoft wants businesses to optimize operations and processes through different plans and subscriptions.

Sum Up

Although Microsoft 365 price will increase in March, businesses have more than enough wiggle room to leverage the solution for various operational uses. Businesses can step up their game and optimize M365 to its full potential. Ideally, businesses should seek out a third-party review of their current Microsoft 365 environment.

In fact, it is the best way to find out which portion of users are using key components and capabilities of Microsoft 365. With a dedicated IT partner, you can also learn about mail usage, cost optimization tactics, potential security issues, and identify waste in your M365. We can help you spot unsupported applications and consolidation opportunities

It is high time for businesses to work with a professional IT partner to minimize expenses and optimize operations. Request an in-depth review now and find out how you can manage and protect your existing Microsoft 365 environment.