The Microsoft Office 365 Price Increase and How it Will Affect You

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Tuesday, 8 February 2022

The Microsoft Office 365 Price Increase

Microsoft recently announced that they will be increasing their commercial pricing for some of their Office 365 packages. The price increase will take affect from 1st March 2022. This global price increase will not affect educational and consumer products at this time.

Since launching Office 365 over ten years ago, this is their first substantial price increase.

How Much Will It Increase To?

We haven’t been provided with the exact figures as yet; they are expected to be released in February 2022. However, the below should give a brief indication of the price increase for each package type:

  • Microsoft 365 Business Basic – 20%
  • Microsoft 365 Business Premium – 10%
  • Office 365 E1 – 25%
  • Office 365 E3 – 15%
  • Office 365 E5 – 8.5%
  • Microsoft 365 E3 – 12.5%

Which Subscription Types Will Not be Affected by a Price Increase?

  • Microsoft 365 Business Standard
  • Exchange Online (Plan 1)
  • Exchange Online (Plan 2)

Although there will be no price increase for Exchange Online, they are removing the monthly subscription, therefore you will be required to sign up to a 12-month subscription.

Promotional Offer for Existing & New Customers

New and existing customers will benefit from two promotional offers when moving to/ordering on the new commerce experience (NCE).

  • Monthly Rolling (January 22 – 30th June 22)

Customers can benefit from the current rate until 1st July when the promotion ends. After this date, you will be charged a standard 17% increase on all subscriptions, plus the specific increases listed above.

  • Annual Pricing (January 2022 – 31st March 2022)

Any customers that commit to an annual contract will benefit from the current rate for the year. After the year, they will be charged at the increased price.

PLEASE NOTE: whilst it is an annual commitment, you will continue to be invoiced on a monthly basis.

Does the Special Offer Have Any Limitations?

  • The offer is only valid for subscriptions of up to 2400 seats
  • The offer does not include Windows 365
  • Not all packages/SKUs are part of the offer

When Does This Need to Be Confirmed?

In order to lock in the special offer rates, it needs to be confirmed and processed by 28th February 2022 latest.

Next Steps

  1. Decide if you are able to commit to an annual term contract or would you prefer to remain on a flexible monthly rolling, noting the base increase.
  2. If you have Exchange Online, decide how many subscriptions that you will require as a minimum in preparation of moving over to a 12 month subscription.
  3. Your Minerva account manager will be in touch over the next couple of weeks.

Committing to the Annual Subscription

If you commit to the annual subscription, you can still add to existing subscriptions and benefit from the current fixed rate. This will be valid until the end of your initial subscription date. However, you cannot remove users during this time.

What We Recommend

If feasible to your business, we would recommend going for the one year subscription in order to benefit from the current price for another year. However, we know your business needs vary, so your account manager will have an in-depth discussion with you and advise you on the best solution for your organisation.

Minerva has over 35 years’ experience in the industry and has a large portfolio of clients across a span of different industries. We always advise and recommend the most practical and cost – effective solutions for your particular business requirements. As mentioned above, your account manager will be in touch over the next couple of weeks, or please feel free to contact us.