Microsoft is announcing its first price increase for Office 365 and Microsoft 365 in a decade. The price increases will affect commercial and enterprise users of Microsoft’s Software as a Service (SaaS) offering next year without changes to education or consumer pricing.
Microsoft’s updated pricing will take effect on March 1, 2022:
- Microsoft 365 Business Basic ($ 5-6 per user)
- Microsoft 365 Business Premium ($ 20-22)
- Office 365 E1 ($ 8-10)
- Office 365 E3 ($ 20-23)
- Office 365 E5 ($ 35-38)
- Microsoft 365 E3 ($ 32-36)
Microsoft first launched Office 365 in 2011 in 40 different markets, and the company has improved it since then. These price changes mark “the first major pricing update since the release of Office 365 ten years ago,” explains Jared Spataro, CEO of Microsoft 365. today in a blog post.
They also come after Microsoft reported a record year of revenue growth thanks to cloud services like Office 365. Microsoft has more than 300 million paid slots for Office 365, so price changes are sure to hit Microsoft’s profits and revenue even further next year.
While large companies have benefited from massive discounts and deals over the past decade, small companies are experiencing the effects of pricing as the economy begins to recover from a pandemic. In any case, Microsoft has added more than 20 applications to Office 365 since its initial release, including Microsoft Teams, OneDrive, SharePoint, and To-Do.