Microsoft 365 price increase for business customers

Some of you may remember a time before Microsoft was so widespread. Today, the company plays a pivotal role in providing vital office software and hardware for businesses, including its Microsoft 365 suite of apps. Launched 10 years ago, Microsoft 365 plays an essential role in many of our daily work lives. But recently, Microsoft has announced that this service will receive its first substantive pay increase since its launch.

What is Microsoft 365?

If you have never used the Microsoft 365 product range before, it is a subscription-based evolution of Microsoft Office. It is still possible to make a one-time purchase of Microsoft Office, however, by choosing Microsoft 365 you get all Office programs such as Word, Excel, Outlook, and PowerPoint with some extra perks.

Microsoft 365 is structured as a pay monthly plan which also features special additions to the classic office apps. These include cloud-based productivity tools such as OneDrive and also artificial intelligence capabilities.

The subscription comes in a range of different packages with different tiers to suit the individual. The Microsoft 365 subscription packages include:

  • Personal - Covers 1 person and includes 1TB of storage.
  • Family - Package shared with up to 6 people, includes 1TB storage per person and additional safety features in the mobile app.
  • Business Basic - Includes Teams, secure cloud storage, web and mobile versions of Word/Excel and PowerPoint.
  • Business Standard - Includes Microsoft Teams, secure cloud storage, business email, and premium Office applications across all devices.
  • Business Premium - Includes all Standard features, as well as advanced cyber threat protection and device management.

Why is Microsoft 365 going up in price?

After its launch a decade ago, Microsoft has grown to over 300 million commercial paid customers and has constantly adapted its products to suit the ever-changing environment.

Since introducing Microsoft 365 they have added 24 apps to the suites including Microsoft Teams - the only integrated solution where you can meet, chat, call, collaborate, and automate business processes. They have also released over 1,400 new features and capabilities.

An official comment from Microsoft: “This updated pricing reflects the increased value we have delivered to our customers over the past 10 years” (Jared Spataro, Microsoft 365 Corporate Vice President).

The first price increase, dated March 10th, is expected to be between 10-20% for any NEW monthly licenses taken out on a small number of Microsoft 365 licenses. The second price increase, set for July 1st, will see a 20% increase for ALL monthly license holders. This won't affect users with annual licenses.

How can I avoid the price increase?

As with many companies, Microsoft favours commitment. As such, they have provided an opportunity for users to avoid the second price increase by switching from a monthly license to an annual one. Those who accomplish this before the July 1st deadline will avoid the 20% increase.

Whether you’re an existing Microsoft 365 subscriber or thinking about making a switch, don’t wait until it’s too late. Get in touch with our Gemini team to make the switch today!

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