Microsoft announces the first substantive price increase for Microsoft 365

Microsoft today announced the increase of commercial pricing for Microsoft 365. It is important to note that this is the first substantive pricing update since Microsoft launched Office 365 a decade ago. Microsoft is increasing the price to reflect the increased value offered by Microsoft 365.

Since introducing Microsoft 365 we have added 24 apps to the suites—Microsoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer, and Whiteboard—and have released over 1,400 new features and capabilities.

Microsoft also confirmed that there are no changes to pricing for education and consumer products for now.

Updated Microsoft 365 pricing:

• 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 above pricing changes will go into effect in six months. Along with the price increase, Microsoft also announced unlimited dial-in capabilities for Microsoft Teams meetings across our enterprise, business, frontline, and government suites over the next few months. Unlimited dial-in will allow users to join their Microsoft Teams meeting from virtually any device regardless of location.

Source: Microsoft