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New Microsoft 365 Pricing Announced Starting March 2022

John PhillipsProduct Updates, Service Updates

Over the past 10 years, Microsoft have revolutionised their Microsoft 365 offerings (previously called Office 365) in three key areas – communications & collaboration, security & compliance, and AI & automation.

For over a decade the prices have remained unchanged (except for an exchange rate readjustment that took place in January 2017). For the first time in this 10 year period, Microsoft have announced changes to their commercial pricing for Microsoft 365 so let’s take a brief look at the product’s journey, including an extra feature that is being added to Microsoft Teams, and the new pricing model.

What are the main innovations Microsoft have made to the product?

  • Four years ago, Microsoft 365 was introduced to combine Office, Windows, and Enterprise Mobility and Security (EMS) together.
  • That same year, Microsoft Teams was added as the only integrated solution where users can meet, chat, call, collaborate, and automate business processes. Teams now has over 250 million active users.
  • Since introducing Microsoft 365, 24 apps have been added to the product such as Power Apps, Power BI, Power Automate, Stream, OneDrive to name a few.
  • With the increased threat around cyberattacks, security for organisations is more important than ever. Microsoft have understood the changing landscape around cybersecurity and incorporated capabilities such as data loss prevention, which helps protect important data such as emails, documents, and sensitive labels.

Are there any new features Microsoft have added recently?

Microsoft have also announced that there will be unlimited dial in capabilities for Microsoft Teams meetings across their enterprise, business, frontline, and government suites over the next few months. This allows users to join their teams meeting from virtually any device regardless of location. So, whether you’re travelling on the train or on the go, you won’t have to worry about missing an important meeting.

What is the new pricing?

The pricing changes announced by Microsoft will come into effect in six months’ time on 1st March 2022. The new prices will be:

  • Microsoft 365 Business Basic: from $5 to $6* per user, per month
  • Microsoft 365 Business Premium: from $20 to $22* per user, per month
  • Office 365 E1: from $8 to $10* per user, per month
  • Office 365 E3: from $20 to $23* per user, per month
  • Office 365 E5: from $35 to $38* per user, per month
  • Microsoft 365 E3: from $32 to $36* per user, per month

* UK pricing will be announced closer towards March 2022

Price increases for existing Microsoft 365 users will take place at their next 12 month anniversary date that takes place after 1st March 2022. Please note that these price increases are only applicable to commercial customers. No changes to nonprofit, academic, or government pricing has been announced at this time. If you are an existing Strategy 365 client and wish to discuss how these changes will affect you, please get in touch with one of our experts who will be happy to answer any questions you may have.

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