Microsoft Increasing Price of Commercial 'Microsoft 365' Plans Next Year

Effective next year, pricing for all commercial plans of Microsoft 365 will be increased as a way to compensate for the "increased value" Microsoft's suite of tools has provided to customers over the last ten years, Microsoft has announced.

microsoft365
In a blog post late last week, the company says the new changes are the first time it has substantively increased the price of Office 365 since it launched a decade ago. Microsoft notes some of the ways that Microsoft 365 has grown in prominence over the last year, including that it has added 24 different apps to its suite of tools.

Since its launch a decade ago, Office 365 has grown to over 300 million commercial paid seats. Along the way, we have continuously re-invested to meet the changing needs of our customers. Four years ago, we introduced Microsoft 365 to bring together the best of Office, Windows, and Enterprise Mobility and Security (EMS). That same year we 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 we 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.

The pricing increases are small, consisting of only $2-$4 hikes, and are as followed:

Microsoft 365 Business Basic (from $5 to $6 per user), Microsoft 365 Business Premium (from $20 to $22), Office 365 E1 (from $8 to $10), Office 365 E3 (from $20 to $23), Office 365 E5 (from $35 to $38), and Microsoft 365 E3 (from $32 to $36).

All of the changes will apply globally on March 1, 2022.

Top Rated Comments

rweiser Avatar
10 months ago

Let’s be honest, no-one else is buying any other Microsoft product, so they’ll milk the Office 365 cash cow until businesses see sense and it keels over.
Azure? Windows? Xbox?
https://businessquant.com/microsoft-revenue-by-product
Score: 18 Votes (Like | Disagree)
smoking monkey Avatar
10 months ago
I've never disliked a program like I dislike MS Word. Yes, it's extremely powerful, but it's quite unintuitive.
I was so happy to walk away from it 18 months ago and not pay the outrageous costs for a normal licence. Sure Pages doesn't format as well as Word, but there are work arounds and I'll take that over having to use MS Word again.
Score: 17 Votes (Like | Disagree)
kcslc Avatar
10 months ago
And all the Xbox game pass subscribers think their $9.99 plan is safe. Just wait!
Score: 16 Votes (Like | Disagree)
Chicane-UK Avatar
10 months ago
So now that so many companies are entirely dependent on it and they're raking it in.. seems like a great time to stick the prices up. Never change, Microsoft.
Score: 13 Votes (Like | Disagree)
Expos of 1969 Avatar
10 months ago

I've never disliked a program like I dislike MS Word. Yes, it's extremely powerful, but it's quite unintuitive....
100% correct. I had to use it at work a number of years ago. Hated it. Tried to avoid it as much as possible. I still have bad dreams about a large document that required five of us to review and make individual changes over a period of a few weeks.

I much preferred WordPerfect but we were forced to switch to Word.
Score: 11 Votes (Like | Disagree)
Apple Knowledge Navigator Avatar
10 months ago

"increased value"
Baha! If it wasn't for the fact that Office is an industry standard, I would say the value has actually decreased compared to the likes of Google Workspace.
Score: 11 Votes (Like | Disagree)

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