Microsoft 365 Price Increase 2022

Changes to Commercial Pricing for M365 and O365 Licences

Authors: FormusPro Technical Team | Formus Professional Software | Nov 2021

On 19 August 2021, Microsoft announced an update to their commercial pricing for Microsoft 365 (M365) and some Office 365 (O365) licences.

It is the first price increase to these products in 10 years.  Microsoft state the increases reflect the improvements and investments they are making to their core business offerings, such as Teams.

Charities and education licences are unaffected by the price increases.

The changes come into effect on 1 March 2022 and will include the following applications:

Enterprise Licence:

  • Microsoft 365 E3 from £28.10 to £31.60 (12.5% increase)
  • Microsoft 365 E5 from £30.80 to £33.45 (8.5% increase)
  • Microsoft 365 E3 from £17.60 to £20.25 (15% increase)
  • Microsoft 365 E1 from £6.00 to £7.50 (25% increase)

SMB Licence:

  • Microsoft 365 Business Basic from £4.55 to £6 (31.8% increase)
  • Microsoft 365 Business Premium from £15.10 to £16.60 (10% increase)

All pricing is per user per month. These are anticipated prices based on $ pricing, the actual final prices in GBP may vary slightly.

Can you Keep the Current 365 Prices?

It may be possible to fix current pricing for a one- or three-year term (depending on your plan) if renewed before 1 March 2022. Monthly payments will still be an option.

We advise you to contact your Microsoft CSP (Cloud Solution Provider) or call us to discuss how these changes might affect your current licencing arrangements and how we can help you make the most of the current pricing.

Read the full Microsoft statement here.

Stay Informed - Sign up to Tech News Updates

We keep a close eye on Microsoft Release Waves as there can be significant updates to software. Most good, some bad and a few ugly. While we cannot change or influence Microsoft’s actions, we do actively seek out and review these release documents.

Our Microsoft Wave updates give you a summary of the original Microsoft documents

  • Inform you of new or improved features
  • A heads-up on any tricky bits you may have to navigate
  • Include advice on how to mitigate any hidden nasties (where possible).

You can sign up to receive these MS Wave updates automatically to your email account. Alternatively, keep checking back here within our resources pages.

Why is Microsoft Increasing the 365 Prices?

Microsoft have been generous with the number of free features added to their products over the last decade since Office 365 was launched.

Four years ago, the introduction of Microsoft 365 (M365) brought together the best of Office, Windows, and Enterprise Mobility and Security (EMS). At the same time Microsoft Teams was introduced, which gave businesses the ability to meet, chat, call, collaborate, and automate their processes.

Since the arrival of Microsoft 365, 24 apps have been added within the suite. These apps include Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer, and Whiteboard. Over 1,400 new features and capabilities have also been released in the three key areas of communication, security and automation.

 In addition to the price increases, Microsoft have announced further details of their new subscription management system, known as the New Commerce Experience.

What is the New Commerce Experience?

Over the past few years Microsoft have been working to simplify their licensing programmes. Under the New Commerce Experience (NCE) our customers will be able to choose monthly, one-year or three-year subscriptions for Dynamics 365, Microsoft 365 and Power Platform.

The changeover to the NCE will begin in January 2022 and by 1 March 2022 all legacy subscriptions will have moved to the NCE. If you buy your Office 365 or M365 licence’s though us, then we will be handling the switch for you.

It may be worth considering your long-term licence commitments before this happens. Please contact us to discuss your options.

We have a proactive approach to Microsoft-led changes and work closely with our clients to minimise additional costs where possible, no matter what the changes.