Microsoft 365 Prices Are Increasing in 2022 – What You Need to Know

Microsoft 365 Prices Are Increasing in 2022 - What You Need to Know

Microsoft 365 has over 731,000 business users in the U.S. alone. It’s one of the most popular cloud productivity tools in the world. Many small and large companies alike have depended upon the Office suite from Microsoft (Word, Excel, PowerPoint, Outlook) for decades, and now have switched over to the cloud version.

One of the reasons that Microsoft 365 has become so popular in the 10+ years that the platform has been out (initially released as Office 365) is because of all the additional apps that have been added.

The company has added over 24 different cloud applications over the years, significantly increasing the value of the platform to businesses. These include helpful apps like:

  • OneDrive for cloud storage
  • Teams for connecting via video, audio, chat
  • SharePoint
  • Forms
  • OneNote
  • Visio for the web
  • Bookings
  • And many others

Many of these updates have been at no additional cost, so organizations have enjoyed more capabilities without needing to pay extra for them. Some of the apps and enhancements to existing M365 apps have even allowed companies to save money by dropping other paid subscriptions.

One example of this is the recent addition of webinar registration and sign-up page capabilities in Microsoft Teams. Many companies had previously used a different service for scheduling and conducting webinars. With Teams adding that capability, it eliminated that additional service need. 

But… the bill for all those value-adds is about to come due. Microsoft is about to introduce a price increase that it describes as “the first substantive pricing update since we launched Office 365 a decade ago.”

Q&A About the New Microsoft 365 Price Increase

When is the Microsoft 365 Price Increase Happening?

A: The price increase will go into effect on March 1, 2022

Are All Microsoft 365 Plans Being Impacted?

A: No, all users will not experience a price increase on March 1st. For example, home and educational users will not be included, those prices will stay the same for now.

Also, it is not all commercial plans that are increasing. For example, Microsoft 365 Business Standard Users are not having their subscription prices impacted.

Which Microsoft 365 Plans Will Increase & By How Much?

A: The following commercial plans will be getting an increase. This is going to be anywhere between $1 to $4 per user per month, depending on the subscription plan.

The increase is global, being adjusted for each currency. The plans being impacted are as follows:

  • Microsoft 365 Business Basic: Going from $5 to $6 per user (+$1)
  • Microsoft 365 Business Premium: Going from $20 to $22 per user (+$2)
  • Office 365 E1: Going from $8 to $10 per user (+$2)
  • Office 365 E3: Going from $20 to $23 per user (+$3)
  • Office 365 E5: Going from $35 to $38 per user (+$3)
  • Microsoft 365 E3: Going from $32 to $36 per user (+$4)

What Do I Get If I Upgrade from Business Basic to Business Standard?

Some users on Microsoft 365 Business Basic may be wondering if an upgrade is worth it, now that the price will be increasing to $6 per user/month.

The Microsoft Business Standard plan is $12.50 per user/month. It includes the following additional features that Business Basic doesn’t have:

  • Desktop versions of the Office apps for PC and Mac
  • The ability to host webinars (including registration pages, email confirmations, reporting)
  • Microsoft Bookings to allow online appointment booking for customers

Why Is Microsoft Increasing Pricing?

Microsoft notes several different reasons for the need to increase pricing, the additional applications that have been added over the years is just one of those reasons. 

Security is another major reason. As cybersecurity threats have become more prevalent, the company has integrated additional security features into Microsoft 365 to help companies better secure their accounts and data.

One of these is the ability to encrypt email messages and attachments when sending them. Another is the addition of data loss prevention, which helps reduce the accidental sharing of sensitive information.

Compliance requirements for data privacy is another area where Microsoft has added a lot of capabilities for companies. This includes things like eDiscovery and core Litigation Hold.

Virtual meeting and team collaboration has become even more vital due to the pandemic. This is an area where Microsoft has focused a lot of resources.

It has added multiple enhancements to Microsoft Teams in the last year to enable companies to make more meaningful and effective online connections with internal teams and customers.

Optimize Your Use of Microsoft 365 With Help from Quantum PC

Are you only getting a fraction of the value from your Microsoft 365 subscription? Quantum PC Services can help your Sturgeon Bay business tap into unused apps and resources to lower costs and improve productivity.

Contact us today to learn more! Call 920-256-1214 or reach us online.