On Thursday 19th Aug 2021, Microsoft announced an update to pricing for commercial customers for Microsoft 365. Changes will take effect from March 1st 2022, providing organisations with 6months of advance notification.

Book a free Microsoft License Audit with one of our Cloud specialists - talk to our team.

It’s the first substantial pricing update since they launched Office 365 over a decade ago. Since then, Office 365 has grown in popularity to now 300 million commercial licenses around the world. Microsoft introduced M365 a few years ago which unified the Office, Windows, Enterprise Mobility and Security apps - Then, Teams was created and introduced as the only integrated solution where you can meet and collaborate virtually.

With the growth in popularity of the hybrid work model, M365 rapidly became a tool organisations rely upon for effective communication and collaboration from any location.

So, what do the announced changes mean to you?👇

From the 1st of March 2022 - New pricing for Microsoft 365 will take place (UK pricing to be confirmed):

  • Microsoft 365 E3 from $32 to $36
  • Office 365 E5 from $35 to $38
  • Office 365 E3 from $20 to $23
  • Office 365 E1 from $8 to $10
  • Microsoft 365 Business Basic from $5 to $6
  • Microsoft 365 Business Premium from $20 to $22

However, there is no price increase for Education/Non for profit at present. Microsoft 365 Conferencing will be added to 365 plans for free going forward. Additional subscriptions may follow closer to the release.

How will this impact your organisation?

Here are the key timescales and key milestones to consider (subject to change): 

  • March 22 - New subscription orders and renewals will only be possible on the new commerce experience.
  • Oct 22 – The partner deadline to move customers to new commerce experience.
  • Feb 23 - All remaining subscriptions on the previous experience must be moved to new commerce. These subscriptions won’t be able to be renewed on the previous CSP experience.

The changes may mean significant budget implications for your organisation. However, the changes discussed will affect each business differently depending upon your licence account management. 

It’s important to understand these changes and the impact they may have to your organisation ahead of the key milestones outlined above.

Our team are happy to discuss these changes and how they will specifically impact your organisation - contact us today.