Need to Know News

Microsoft announced they will be changing their commercial pricing for Microsoft 365—the first substantive pricing update since they launched Office 365 a decade ago. This updated pricing reflects the increased value delivered over the past 10 years. So, what is changing?

Microsoft is still offering a month-to-month subscription model, but they are now also offering an annual and 3-year plan. These two plans can still be paid on a month-to-month basis. If you stay with the month-to-month plan, the price will increase by 20% on top of the 15% price increase coming in March 2022. By moving to the Annual or 3 Year plan, your increase will be 15%.

Seat changes will also be affected by this change. Prorated refund for first 72 hours of term, no refunds on cancellations or downgrades (on 12-month annual commitment/36 month commitment). With the month-to-month plan, prorated charges for seat changes will take place mid-month. With the annual plan, you can increase seats, but you cannot decrease seats until annual renewal. With the 3-year term, you can increase seats but not decrease seats until end of the 3-year term. Anniversary dates will also be affected. For month-to-month clients, a single recurring anniversary date will apply, and it will be the 1st of the month. For the annual plan and the 3 Year plan, a single anniversary date per subscription will be in place. Seat changes mid-term are prorated for the remainder of the term. The 3 Year plan does come with the benefit of locking in your price, in case Microsoft enacts another price increase in the next 3 years.

New pricing for Microsoft 365 will be effective March 1, 2022
• M365 Business Basic: $6 (from $5)
• M365 Business Premium: $22 (from $20)

• Office 365 E1: $10 (from $8)
• Office 365 E3: $23 (from $20)
• Office 365 E5: $38 (from $35)
• Microsoft 365 E3: $36 (from $32)
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