The Microsoft price increases, effective March 2022, will include the first substantive cost update to Office 365 since its launch a decade ago.
Several upcoming Microsoft price increases will be taking place in 2022. Microsoft plans like Microsoft 365 Business (Basic and Premium), Office 365 (E1, E3, and E5), and more will be affected.
Organizations that have become accustomed to the aforementioned products should expect invoices to increase around March of this year. Our guide below details all of the known Microsoft price changes happening in 2022.
“This updated pricing reflects the increased value we have delivered to our customers over the past ten years.”
Jared Spataro, Corporate VP for Microsoft 365
What is the new Microsoft 365 Price Increase?
Microsoft recently announced several updates to their commercial pricing for Microsoft 365. The pricing changes are set to go into effect on March 1, 2022, and will update the monthly list pricing for:
|Microsoft Plan||Price Increase (Per User)|
|Microsoft 365 Business Basic||$5 to $6|
|Microsoft 365 Business Premium||$20 to $22|
|Office 365 E1||$8 to $10|
|Office 365 E3||$20 to $23|
|Office 365 E5||$35 to $38|
|Microsoft 365 E3||$32 to $36|
These increases will apply globally with local market adjustments for specific regions.
The good news is that the price increases will only affect commercial and business users, with no changes to pricing for education or consumers subscriptions.
When does the Microsoft 365 price increase take into effect?
As mentioned earlier, Microsoft plans to boost the price for its business software subscriptions, including its core Office 365 suite, starting on March 1, 2022.
Additional Microsoft Price Increases
On September 1, 2021, Microsoft implemented price increases to their Windows Server offering:
- Windows Server: 10% price increase for Windows Server Standard, Win Server CAL, and Win Server RDS
On October 5th, 2021, Microsoft implemented prices increases to their Office LTSC offering:
- Office: 10% price increase for Office Professional Plus and Office Standard
*THESE PRICE INCREASES ARE NOT SPECIFIC. INCREASES ARE CONSISTENT ACROSS ALL LICENSING TYPES, INCLUDING SPLA.
How can I lower my Microsoft costs?
If your organization is looking to trim the fat in your IT budget, there are a few options:
Purchase Standalone Versions of Office Programs
Standalone versions are an option but aren’t sufficient for businesses that wish to innovate and start their digital transformation journey.
Use the Online Version of Microsoft 365
Choosing to utilize the free version certainly cuts costs but doesn’t work for companies looking to scale.
Move to Another Suite of Cloud-Based Office Tools
You can always take your business elsewhere, but very few tools are as adept at Microsoft Office when it comes to remote work and asynchronous communication.
Yes, I said they were options, not that they were good options. Okay, no more games. The best thing you can do to lower your costs is:
Find a Cost Optimization Partner
Working with a partner, is your best bet to reducing IT expenses while making sure the estate is optimized. Partners hold decades of Microsoft expertise and licensing knowledge.
Two concrete services POCC can offer are:
1) MICROSOFT BASELINE ENGAGEMENT
Our cloud specialists review your software estate to uncover opportunities for improvement and ensure compliance.
2) LICENSE OPTIMIZATION AND ASSESSMENT
Work with our licensing experts to gain a full view of your current IT assets and contractual obligations to plan optimize and plan future investments.
Far too often, leadership expects CTO’s and IT Directors to know everything, but optimizing Azure spend and software contracts is another beast entirely.
It’s okay to bring in experts to fill the knowledge gap, put your trust in us, and together we’ll solve your pain points and save you money in the process.