Microsoft 365 Price Changes

Microsoft have announced changes to their commercial pricing for Microsoft 365—the first substantive pricing update since Office 365 launched a decade ago. This updated pricing reflects the increased value they believe they have delivered to their customers over the past ten years.

A decade of continuous innovation

Since its launch a decade ago, Office 365 has grown to over 300 million commercial paid seats. Along the way, Microsoft have continuously re-invested to meet the changing needs of their customers. Four years ago, they introduced Microsoft 365 to bring together the best of Office, Windows, and Enterprise Mobility and Security (EMS). That same year Microsoft also added Microsoft Teams as the only integrated solution where you can meet, chat, call, collaborate, and automate business processes—right in the flow of work.

In fact, since introducing Microsoft 365, Microsoft 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 in three key areas.

Communication and collaboration. 

Microsoft Teams is the new front end across work, life, and learning for more than 250 million monthly active users. Microsoft launched Teams in 2017 as the only integrated solution where you can meet, chat, call, collaborate, and automate business processes—with the power of the Office apps—all within the flow of work. In 2020 alone, they released over 300 new capabilities, including Together mode, background effects, large gallery view, raise a hand, live reactions, breakout rooms, live captions with speaker attribution, and Fluid components, to name a few.

Microsoft also introduced a new category of collaborative applications in Teams, empowering people and organisations for hybrid work through deep integrations with Power Platform, Whiteboard, Lists, Planner, Shifts, Forms, and SharePoint. Companies like Adobe, Atlassian, Salesforce, SAP, ServiceNow, and Workday have built apps that deeply integrate with Teams, bringing business processes and functions directly into the flow of work.

They continue to innovate on both real-time and asynchronous collaboration. Real-time collaboration was also introduced in Word, Excel, and PowerPoint desktop apps. At the same time, a growing set of capabilities like @mentions, assign tasks, modern comments, and auto-save have streamlined the collaboration experience. OneDrive cloud storage and the Exchange Online mailboxes have been added to and expanded as well.

Security and compliance.

The cybersecurity landscape is more complex than ever. With the accelerating volume, sophistication, and scale of cyberattacks, security and compliance are prioritised for every organisation. Since Microsoft 365 was first introduced, newly added attack surface reduction capabilities have been added to help organisations defend against ransomware and other threats. They have added capabilities like data loss prevention (DLP) for email and documents, sensitivity labels, and message encryption to help keep essential data within the organisation. And have added powerful compliance capabilities that help organisations reduce risk and respond to increasing regulatory requirements such as Content Search, eDiscovery, and core Litigation Hold. Built-in mobile device management (MDM) and other management tools like Microsoft Endpoint Manager help admins support remote and hybrid workforces.

AI and automation.

Over the past decade, we have infused AI capabilities across our productivity and collaboration applications to help everyone achieve more. Across Microsoft 365, we have introduced AI-powered innovations to help users be better writers, designers, and presenters. Cloud-powered AI now automatically creates maps, charts, and tables in Excel, sorts email and removes clutter in Outlook. And AI-powered real-time translation, captions, and transcription make collaboration and communication more accessible and engaging for everyone.

Extending audio conferencing capabilities

Microsoft also announced that they would add unlimited dial-in capabilities for Microsoft Teams meetings across our enterprise, business, frontline, and government suites over the next few months. Even as cloud connectivity increases, Microsoft know that people join Teams meetings while they are on the go or struggling with a bad internet connection. Available with subscriptions in over 70 countries and with interactive support in 44 languages and dialects, unlimited dial-in provides peace of mind that users will be able to join their Microsoft Teams meeting from virtually any device regardless of location.

New pricing

On March 1, 2022, Microsoft will update their list pricing for the following commercial products: Microsoft 365 Business Basic (from £3.80 to £4.50 per user), Microsoft 365 Business Premium (from £15.10 to £16.50), Office 365 E1 (from £6 to £8), Office 365 E3 (from £17.60 to £19), Office 365 E5 (from £30.80 to £32), and Microsoft 365 E3 (from £28.10 to £34) [Based on USD to GBP conversion rate of 1.4]. These increases will apply globally with local market adjustments for specific regions. There are no changes to pricing for education and consumer products at this time.

If you would like more information on Microsoft 365 products and pricing, please do not hesitate to get in contact with our team of friendly and professional experts.